One third of Scots have borrowed money from family and friends; yet one in ten do not expect to pay the money back, a report has revealed.
Part of Bank of Scotland’s ‘How Scotland Lives’ study, the analysis also found that almost a quarter are borrowing money from friends and family just to get by, using the cash to cover day-to-day living costs.
Scots are most likely to borrow money from the Bank of Mum and Dad; borrowing an average of £3,209 from their parents. Meanwhile, one in 20 have borrowed from siblings and 4 per cent from friends, with just three per cent seeking financial support from grandparents.
Over half of those that borrow money told the YouGov survey of of 3,048 adults that they feel guilty for doing so, as they hoped to provide for themselves, and one in ten admitted that the borrowing of money has caused tension in their family. Those less worried about having borrowed cash from family members were people living in the Highlands and Islands, with just 34 per cent saying it bothered them that they had done so.
However, over half of Scots who have lent money say they are happy to give a helping hand to family and friends, with just one in ten feeling annoyed about lending to loved ones. Those in Aberdeen and Fife appear to be the most generous regions and are happiest to offer a loan in times of need.
South Scotland and Dundee are shown to be less likely to hand out the cash than the rest of Scotland, with only half happy to lend money to a family member. Those in Lothians and Dundee are also more likely to be annoyed about being asked for a loan. It comes as a quarter of Scots said they do not expect to get their loan back from loved ones.
Ricky Diggins, network director at Bank of Scotland, said: “As I am sure most Scots would agree, we are a small but generous nation, especially when it comes to family members, feeling much more comfortable lending than borrowing. It’s important for us all to open up about money with our family and friends as this can help with easing financial strains or worries.”
Scots are likely to lend more to their children than anyone else, loaning their kids an average of £3,209 last year. However, the amount lent to children has fallen by an average of £500, since 2016.