Bank of Mum and Dad gives out £44bn annually

Grown-up children are still relying on their parents to give them help financially.

The latest Lloyds Bank Family Savings Report, carried out in co…

Grown-up children are still relying on their parents to give them help financially.

The latest Lloyds Bank Family Savings Report, carried out in conjunction with the Future Foundation, discovered 70 per cent of kids receive some form of financial support from their family.

Houses (£11.3 billion), cars (£4.4 billion) and weddings (£4.3 billion) were the three main purchases that people are turning to the Bank of Mum and Dad for, with £44 billion now being handed over every 12 months.

This demonstrates how young adults are struggling to make ends meet without the support of their loved ones. Indeed, there are now around 4.25 million adults in the UK living with their parents.

Andy Bickers, director of savings at Lloyds Bank, said: "The last two decades have seen a massive increase in the financial demands made on parents by their adult children, and now more than ever, saving for the future is really important. 

"To get children into the savings habit it's best to start early, by parents encouraging them to put money aside each month as they start earning, and over time they too can think about putting money away for their own children as they get older."
 
Whereas in the 1970s only 53 per cent of grown-up kids received financial help after they moved out, this figure has now increased to 70 per cent. Those in the 25 to 29-year-old age bracket are the most demanding, as they are given an average of £2,599 a year – some £429 of this goes on paying off credit card bills and other debts.

Living at home can prove to be a great saving tool though, as the typical person can put away £4,844 per year if they choose to stay in the family property. Worryingly, 68 per cent of grown-up children said they cannot imagine a successful life without their parents' financial support.

By James Francis

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