Parents ‘still supporting adult children’

Parents are spending a total of £233 billion supporting their grown-up children, according to a new report.

Investment and pensions group LV= conducted a survey of adults aged 40 and over who have sons or daughters aged 18 or older.

It found that 94 per cent continue to contribute to their children’s expenses such as houses, cars and education – which could help them to remain debt free .

Over half (55 per cent) said they help out with general living costs, indicating that the credit crunch is having an impact on the lives on young people, the study stated.

Communications director Nigel Snell commented: “Parents certainly like to financially contribute, if they can, towards large purchases for their adult children, such as weddings and deposits for first homes.”

He added that the economic climate is affecting day-to-day living costs.

Recent research by Prudential revealed that 46 per cent of consumers thought the credit crunch was a concern – a further 85 per cent claimed they were worried about rising energy prices.

By Jamie Price