Young people rely on financial crutch from parents - Money - News - Moneyfacts


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

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 It is now over 6 months old so the content may be out of date.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

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Money worries lead to Christmas on credit

Money worries are putting Christmas at risk for up to five million Brits, with 10% saying they regularly worry about money in the lead up to Christmas, and the same proportion feeling stressed about how much they are spending.

Would you spend more for a character property?

We all have our own ideas of what makes a dream home, and for many, character features are at the top of the list. But how much more would you be willing to pay for those kinds of additions – and could they even help you save money in the future?

A quarter of Brits have fallen victim to a scam

Think you know how to spot a scam? It may not be as easy as you’d think, with 25% of Brits admitting that they’ve been the victim of one in the past, and a further 73% are concerned about being scammed in the future.