Bank of Mum and Dad Keeps On Giving
Parents are supporting their children long after they should have reached financial independence, as 94% of adults are supporting their children beyond the age of 18, at a total cost of £21,540.
Insurance and investment group LV=, have reported that many families are contributing towards expensive purchases, meaning that many could have to seek debt advice as they pay out for these extra expenses. This financially breaks down to:
- £6,735 towards a three year university course
- £5,600 towards buying a first home
- £3,340 towards savings and investments
- £3,100 towards wedding costs
- £1,700 towards a first car
- £1,050 towards travelling.
These figures exclude day to day living expenses, and LV= predict that UK parents spend an average of £233 billion on their grown-up children. Communications director, Nigel Snell, said:”More than ever it is true to say that having children means signing up to a lifetime of financial commitment.”