Friends and family `not the best advisers`

Many people might turn to friends and family as the first port of call for financial advice, but a new survey has revealed that these may not be the best places to seek help.

A poll by Birmingham Midshires found that 16 per cent of people in the UK have received poor advice from their nearest and dearest.

Mostly, this related to investments, which made up 37 per cent of the bad guidance received. However, mortgages (19 per cent), insurance (13 per cent) and savings (12 per cent) also featured as responses in the survey.

Of those who were poorly advised, 81 per cent said they had suffered financially.

Birmingham Midshires` Tim Hague commented: "While it may appear more accessible and less time-consuming to act on the recommendations of friends and family when it comes to financial advice […] our study demonstrates that it really does pay to visit an expert."

The news follows research from Abbey that shows parents are cutting back on paying pocket money in order to reduce debts.