With young people in the UK struggling to get on to the property market and often saddled with debt, it is not surprising that new research has revealed that more than half of all adults aged between 21 and 35 have asked their parents for financial support in the past two years.
While the more significant requests have been for big-ticket items, such as home deposits or money towards a new car, the new survey by Experian has revealed that everyday goods, such as groceries and new clothes have been funded by the Bank of Mum and Dad.
Around 55 per cent of adults in this age group have received money from their parents, while 26 per cent have sought to reduce their bills by living at home.
Of those who moved in with their parents, more than four-fifths said they were using the opportunity to put money aside, helping them to save around £205 per month on average.
Around a third hoped that they could use this money to save towards a home, while 19 per cent had made the move to help clear debts.
Of those not living at home, 18 per cent said their parents had paid for everyday essentials, such as the weekly supermarket shop, while as many as 13 per cent have been taken shopping to buy new clothes and 18 per cent were gifted money to go on holiday.
The study also found that:
- Nine per cent had been given money towards a wedding or a honeymoon
- Seven per cent had been given a deposit for a new house which they weren’t required to pay back
- Seven per cent had been given money to clear a loan
- Eight per cent were gifted money to buy a new car.
James Jones, Head of Consumer Affairs at Experian, said: “The Bank of Mum and Dad is a financial institution that is becoming increasingly important, especially when it comes to purchasing a property.
“However, our research shows that this dependence on parents by young adults goes beyond just big one-off expenses and stretches to everyday essentials. This has implications for both the youngsters’ and the parents’ financial futures, particularly if the parents’ finances become squeezed.”