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Young people rely on financial crutch from parents

Young people rely on financial crutch from parents

Category: Money

Updated: 23/07/2012
First Published: 23/07/2012

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 It is now over 6 months old so the content may be out of date.

A huge number of young people are relying on their parents to help them financially, running into thousands of pounds a year.

The cost of raising a child is typically thought to reduce once they reach their late teens; however, over 4.4 million parents are helping their offspring with basic living costs such as rent and bills. This is costing parents an average of £2,103 a year.

High unemployment, university costs and debt problems are thought to be the main reasons for the worrying figures, released by the protection specialist LV. According to the study, the average age for a first-time buyer and financial independency is 38, vastly different to the traditional age of 21.

Constantly bailing out their sons and daughters is also impacting negatively on parents' finances. Nearly half admitted they struggle financially as a result, but feel it is their duty as parents to help.

Mark Jones, LV= head of protection, said: "Many parents won't have considered how their kids would continue to cope if they could no longer support them financially.

"Discussing their financial situation with a professional adviser and looking at all the options available, including life cover and income protection, making sure policies are put in trust for children where appropriate, and having an up-to-date will in place, can provide invaluable financial security for families."

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