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Cost of funding adult children more than £30,000

Cost of funding adult children more than £30,000

Category: Money

Updated: 25/01/2011
First Published: 17/02/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Parents are being hit to the tune of more than £30,000 as a result of financially supporting their adult children.

Over nine in ten (93 per cent) parents say they have provided financial help to their children aged 18-30.

Dubbed Young Unwitting Costly Kids, they are putting their parents' future at risk, as 28 per cent said they had either remortgaged their home or plan to do so to help out their children, according to research conducted by The Children's Mutual.

Furthermore, two thirds of parents are tightening up the cost of day-to-day living in a bid to help out their adult offspring.

Twenty-eight per cent said they had made an effort to shop for food in a more economical manner, 42 per cent claimed to monitor the cost of heating and lighting their home, while seven per cent said they had resorted to selling their car.

"These figures unveil the stark reality of the cost of being a parent," said David White, chief executive of The Children's Mutual.

"No longer does turning 18 mean financial independence. In fact, 16 per cent of parents questioned expected their child to remain financially independent on them into their thirties and beyond."

It seems that the cost of funding adult children is catching some out, as seven in ten respondents said they had underestimated how much they would have to spend on their child during adulthood.

And, it is not just big ticket items that parents are covering the cost of. Thirty-two per cent provide regular support for bills and payments, while 14 per cent spend money servicing debts and loans.

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