The bank’s annual Savings Tracker found that a third (36%) of parents worry that their older children are not saving enough. So much so that to help them build a savings pot, nearly one out of six (15%) UK parents is giving their kids money regularly to put away.

Living inheritances

Parents are worried about their children being able to get on the property ladder, with almost a third (29%) having helped or planning to help their adult children with the deposit for their first home.

Parents are also thinking further ahead with many considering how they will pass on their money to their children. One out of five (20%) have or plan to hand over their savings to their adult children while they’re alive, in order to avoid tax losses.

Meanwhile, one in ten (10%) parents say their savings are instead going toward helping their child to manage today’s rising cost of living.

Financial priorities

Ewan Edwards, head of savings at Aldermore Bank, said: “The bank of mum and dad may be feeling the pinch given the current economic climate but they are still eager to lend a hand to their loved ones. Our research highlights that parents are prioritising their grown up children’s finances, perhaps over their own.

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“It’s concerning that a quarter of parents are having to dip into their long-term savings to support their adult children. While it’s natural to want to help your loved ones, make sure you keep enough money aside so that you have an adequate financial safety net, and can work towards your own financial goals.”