Parents’ money worries ‘have knock-on effect on children’s wellbeing’

When parents are worried about money, it can affect their children’s mental wellbeing, according to new analysis.

Research by the Institute for Fiscal Studies and the UCL Institute of Education looked at the effect of the first year of the Covid-19 pandemic on children’s social and emotional skills.

Almost half of parents (47%) said their child’s social and emotional skills had got worse during that time. And children whose parents' employment was affected by the pandemic were hit harder.

Even when parents were furloughed and didn’t experience a significant dip in income, children’s emotional and social development was impacted.

The researchers behind the study put this down to:

• actual and anticipated loss of income caused by job instability
• the effects of job instability on parents’ wellbeing

This highlights the fact that money worries affect not just the parent themselves but their children too.

Author of the report Andrew McKendrick said:

“With the cost-of-living crisis currently hitting many families’ budgets, our findings are a reminder that economic uncertainty can have multi-generational impacts."

Help for parents struggling with debt

At Money Wellness, a third (32%) of people who came to us for help in June were parents. If you have kids and you’re struggling with money worries, you don’t have to face them alone.

We can help with budgeting, making sure you’re claiming all the benefits you’re entitled to and advising on debt solutions. You can access our help online or over the phone.

If you’re bringing up kids on your own, you might also find our guide on support for single parents useful.