Parents fork out £233bn to support adult kids
Research from LV= has revealed parents spend £233bn on supporting their adult children and are foregoing their own financial freedom to support their children.
The study, which was carried out amongst adults aged 40 years and over who have children 18 years and over, found that nine out of 10 parents continue to contribute financially towards education and other major purchases such as houses and cars, plus living expenses, once their children have reached adulthood.
Over half of all parents surveyed admitted to helping their adult children with general living costs, indicating that the credit crunch and rising living costs are impacting on the finances of adult children.
Nigel Snell, communications director at LV=, said: “Parents certainly like to financially contribute, if they can, towards large purchases for their adult children, such as weddings and deposits for first homes.
“However, it seems that the current economic climate is impacting on day-to-day finances too. Parents are the hardest hit, with a large proportion admitting that they are helping to cover their children’s living expenses, as well as meeting their own financial commitments.”
Overall, parents contribute £21,540 to their children after they have reached adulthood.
Snell added: “Our study shows that parents can no longer expect their children to pay their own way once they have flown the nest. More than ever it’s true to say that having children means signing up to a lifetime financial commitment.
“Many parents will have had to put some plans on hold to manage the costs associated with raising a family, and once their children are old enough, parents should begin to encourage their own children to make small provisions, so that the financial burden can be reduced and parents can enjoy more financial freedom in retirement.”