New research from UK peer-to-peer lender RateSetter has found that most people in the UK think their family members know best when it comes to financial advice. Four in ten people (38%) have gone to another family member for advice about money, while only one quarter (25%) have used a professional, qualified adviser.
The most common source of advice in the family are mums and dads; overall, 29% have asked their parents, rising to nearly two-thirds (63%) of under 35s. But the flow is not all one way, with one in ten over 55s saying they have asked their grown up children for advice, perhaps reflecting that many financial services are now accessed online.
Indeed, a quarter of under 35s say they have provided tips to their parents, and 5% say they have advised their grandparents.
Strikingly, almost half of people across the UK are sufficiently confident in themselves to have never asked for financial advice.
Half of those that have provided advice to family members did so about savings, with the next most common topic being credit cards and loans (47%).
When it comes to the question of who is most trusted to provide financial advice, 59% of under 35s trust advice from their parents, with 39% trusting financial advisers. Under 35s are also the least likely age group to trust tips provided by websites and newspapers, and more likely than other age groups to trust advice from friends and work colleagues.
However, there is cause for financial advisers to be optimistic for the future. While only one in seven under 35s have consulted a financial adviser in the past, half (52%) say that they are likely to use one in future, along with four in ten (41%) 35-55s compared to only a quarter of over 55s.
Lucy Bott from RateSetter commented on the research:
“We’ve heard how millennials are tapping the ‘bank of mum and dad’ for things like a deposit to buy a house, and this research shows that parents and grandparents are important and trusted sources of financial advice too. Perhaps more surprising is that many parents are now turning the tables, seeking advice from their grown up children.
“The key thing is to keep your finances under review – and with interest rates recently cut even closer to zero, it is all the more important not to bury your head in the sand and hope for the best. Putting money to work now can help turn dreams for the future into reality.”
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