4m Britons still seeking financial help from their parents

More than four million adults in the UK still rely on the financial help of their parents despite having moved out.

Analysis by Gocompare.com has f…

More than four million adults in the UK still rely on the financial help of their parents despite having moved out.

Analysis by Gocompare.com has found that while many grown-up children are keen to have their own space and independence, many cannot afford the financial outlay that comes with living on their own.

Of the 2,008 people questioned, one in ten admitted using the Bank of Mum and Dad – the figures rises to 26 per cent for those in the 18 to 34-year-old age bracket.

Some 38 per cent said they needed support because they could not afford to pay for all of their bills, while 39 per cent admitted their parents like to help them out. Although 24 per cent said the assistance started out for a specific reason and has yet to stop, 13 per cent revealed they take money off their mother and father so they can spend their own income on other things.

Money worries are leading to rows

Relying on their parents for help is also starting to affect the relationship they have with their parents, as 46 per cent of grown-up children admit they argue with their mum and dad over the fact they constantly need to be bailed out.

Moving forward, 31 per cent of people hope to stop receiving financial assistance from their parents within the next 12 months, while 24 per cent expect it to last for another two or three years and 12 per cent have no intention of ending the arrangement.

A worrying development

John Miles, business development director at Gocompare.com, said: "It's worrying that so many people continue to receive help with their outgoings from their parents; suggesting that they aren't able to manage their household budgets. But while many see this support as a short-term solution, plenty of those we asked seemed quite happy for their parents to continue bailing them out for the foreseeable future.

"So while mum and dad may offer more lenient lending criteria than most banks and building societies, it's not surprising that there seems to be an 'emotional APR' attached, with almost half saying that they argue with their parents about receiving money from them."

Young adults are struggling to stay afloat

The research points to the fact that many young adults are struggling to make ends meet as a result of the current economic situation. With spending power down and the cost of living up, individuals are finding they do not have enough money to cover all of their financial responsibilities.

This situation could cause serious issues further down the line, as consumers may start to rely on unsecured lending in order to get by. If people do not have a realistic budget in place, then they will not be able to stay on top of their outgoings.

For those already struggling with debt, taking action as soon as possible is essential. Solutions such as debt management plans and individual voluntary arrangements can help people, regardless of how much money they owe.

By James Francis

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