Money Saving Updated:
It can't be denied that it can be difficult to get on the housing ladder these days. Spiralling house prices and extortionate rents, not to mention the cost of everyday essentials, means that many 20 and 30-somethings are still living with their parents in order to save some cash and build up that much-needed deposit. Well, it looks as though it could pay off, with research from Topcashback revealing that the typical adult saves £1,000 per month by living with Mum and Dad!
According to the figures, parents charge their adult children an average of just £150 per month for rent, and will typically take charge of the cleaning, cooking and grocery shopping as well – all for free. In fact, 70% of parents do their children's laundry and 27% clean up after them, including making their beds and tidying their room. And, not only do 80% buy their children's groceries, but 61% cook dinner every evening, and 20% of parents still make lunches.
Essentially, adult children living at home are getting full board and accommodation, all for £150/month! The savings can be substantial, as paying rent, buying food, having a cleaner, and paying for bills and the TV licence would cost the average Brit £1,236.36 per month if they were renting privately – meaning that adults who live at home will be left with a very comfortable disposable income of more than £1,000 a month.
It could be a great way for children to build up a deposit and get that all-important first-time buyer mortgage. Indeed, 82% of parent surveyed believe that their children couldn't afford to live away from home on their current salary (based on the national average of £26,000), so being able to stay in the nest offers a way to live comfortably and save at the same time.
It's a growing trend, too, with 72% of parents surveyed saying that they still have their children aged 18 years and older living with them, while 74% of those aged between 22 and 30 years-old admit that they're still living in their childhood home. But, just because you can save a fortune, it doesn't mean you should waste the opportunity.
More than half (58%) of parents surveyed believe that their children are able to live a more extravagant lifestyle because they live at home, but that doesn't mean you should splash out too much. Even though you'll be able to live a slightly more comfortable existence, make sure to put that extra £1,000 – or as much of it as you can – into a dedicated savings account.
That amount of money could soon add up, particularly if you put it in an easy access ISA, where all returns are tax-free. You could soon build up that deposit, so don't squander your savings – reap the rewards of staying in the parental nest and you could be in your own home before you know it!
Compare savings accounts to find the best home for that extra cash
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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