Teenagers hit as Bank of Mum and Dad suffers

It's not only Northern Rock that's in trouble - the foundations of the Bank of Mum and Dad are also looking shaky, it has been revealed.

Research conducted by AXA shows teenagers are being affected by the credit crunch too as their parents are reducing their allowances and pocket money in the light of worsening economic conditions.

Around five million parents (38 per cent) have taken cost-saving measures which have affected their children, while 17 per cent have reduced the amount they give their offspring in the last six months.

"The Bank of Mum and Dad has so far been quiet on the issue of how it will deal with the effects of the credit crunch. But now it has come out and shown teenagers have been hit hard," commented AXA's Alison Green.

"Parents are getting tough and kids are not going to like it."

One thing that can't be scrimped on is home insurance, as this could be ruinous if disaster strikes.

July 11^th 2008

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