Credit Cards & Loans
One in ten ‘independent’ adults still rely on Bank of Mum and Dad
One in ten British adults still rely on the ‘Bank of Mum and Dad’ long after they have moved out of their parents’ homes, research reveals.
This figure rose to 26% for 18-34 year olds, with men (12%) more likely than women (8%) to continue receiving financial support after they have left home, according to the report by Gocompare.com.
However, almost half (46%) of those who still receive help with their outgoings admitted that they have argued with their parents about it.
The reasons given for continuing to get help from mum and dad with outgoings were:
• 38% said that they did so because they couldn’t afford to pay for themselves
• 39% said that their parents insisted because they like to help
• 13% claimed they asked their parents to help because they wanted to spend their money on other things
• 24% said that their parents started helping them and just haven’t stopped
Parents are not just called on to lend some quick cash though; they also moonlight as their children’s financial advisers, with 12% of adults saying that their parents still try to tell them what to do with their money. This rises to 28% in the 18-34 age bracket and 13% in the 35-54 age bracket.
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Although almost a third (31%) of ‘independent’ adults who continue to get financial support from their parents hoped to be able to ask for this to stop in the next 12 months, 24% expected the assistance to last another two to three years.
Others are quite content to receive parental pay-outs for the long term, with 8% saying they would only ask their parents to stop if they brought it up; 24% only if their parents tell them they want to stop; and 12% insisted they’d never ask their parents to stop paying some of their bills for them.
John Miles, business development director at Gocompare.com, said: “It’s worrying that so many people continue to receive help with their outgoings from their parents; suggesting that they aren’t able to manage their household budgets. But while many see this support as a short-term solution, plenty of those we asked seemed quite happy for their parents to continue bailing them out for the foreseeable future.
“So while mum and dad may offer more lenient lending criteria than most banks and building societies, it’s not surprising that there seems to be an ‘emotional APR’ attached, with almost half saying that they argue with their parents about receiving money from them.”