Increase in ‘chadults’ putting huge strain on UK parents
4.4m grown-up kids or ‘chadults’ in the UK continue to be financially supported by their parents, even after they turn 21 and reach adulthood, with each child costing their parents £47,324 on average during their adult years, according to the ‘Cost of a Chadult’ study.
British parents are regularly helping to pay towards their grown-up children’s basic living costs including bills and rent, at an average of £2,103 a year. Big tickets items like further education, holidays, weddings and getting on the housing ladder costs parents an additional £9,476 on average per chil, during the course of their lifetimes.
Mark Jones, LV= head of protection, said:
“Bringing up a child is expensive and for millions the cost doesn’t stop there. Young people are leaving university with large debts, youth unemployment is at a record high and property is unaffordable for many. So it is likely we will see a growing number of adults who continue to depend on their parents financially.”
Of the 4.4m chadults in the UK receiving financial support from their parents, 1.6m still live at home. Of these over half are in their twenties, a third are in their thirties and one in ten are over 40.
The overall cost of financially supporting a chadult that lives at home is significantly more, with parents forking out around £55,447 over the years on average. This is despite nearly a half of these parents admitting that financially supporting their children means that they themselves struggle as result, with 44% diving into their savings, and others going with holidays.
The average age of a first-time buyer in the UK today is 38, with predictions that this will rise to 41 by the year 2025. A third of parents living with chadults cite their children’s inability to get on the property ladder, and not wanting to rent as the reason for continuing to support their children financially. Lack of suitable jobs, relationships breaking down and high accumulated debts are further reasons as to why many children are unable to fly the nest.
“Many of these parents won’t have considered how their kids would continue to cope if they could no longer support them financially. Discussing their financial situation with a professional adviser and looking at all the options available, including life cover and income protection, making sure policies are put in trust for children where appropriate, and having an up-to-date will in place, can provide invaluable financial security for families.”
This follows recent report by Santander Savings highlighting that 11m adults in the UK have absolutely no money deposited in savings.
Over the past 12 months, the average monthly deposit amount has also fallen 7%; in 2011, Britons were depositing an average of £112 per month, a figure that has dropped to the current average of £105.
At £128 per month, male savers are depositing 54% more than females, who are only setting aside an average of £83 each month. Female monthly deposits have also reduced by 8% over the past 12 months, compared to a 5% drop in the average deposit made by male savers over the same period.