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A study on the money habits of British adults has found that a significant proportion still rely on the ‘Bank of Mum and Dad’ – in other words, their parents financing them at times of need – and it’s not just the younger generation doing so.
In surveying 2,000 adults across the UK, the research shows over half (55 per cent) of those aged 18-24 have needed financial support in the past year, which is unsurprising given many could still live at home and not all might be in full time employment.
But more surprising is that a third (33 per cent) of those aged between 35 and 44 have also needed money aid from the Bank of Mum and Dad, and even 21 per cent of 45-54-year-olds.
While big-money purchases and expenses such as weddings and attending university make up significant contributions as usual, there was also a notable number of smaller and day-to-day items which respondents claimed they needed family members to chip in towards, including groceries and utility bills.
The survey, conducted by 3Gem for NatWest, showed UK adults “withdrew” an average of £773 from the Bank of Mum and Dad, while one in five parents do not expect to be repaid for their loans to children.
Wedding costs took top billing, with 18 per cent of adults saying they needed help with those, but a similar number needed money for groceries and household expenses.
University costs (17 per cent), first home deposits (17 per cent), rent or mortgage payments (15 per cent), paying for meals eaten out (13 per cent), utility bills (12 per cent), paying for holidays (12 per cent) and home repairs and renovations (nine per cent) made up the rest of the top ten, for where the money was spent.
A NatWest spokesperson suggested that using money-saving tools or taking on board personal finance advice could help “empower young adults to manage their finances effectively and reduce dependency”, but also highlighted the positivity of those able to help out family members.
“It’s fantastic that so many parents are in a position to take action to help their adult children, but it’s important that families have honest conversations about money. Whether it’s a gift or a loan, clear communication helps avoid misunderstandings and ensures that everyone is on the same page,” they said.
