Adults under the age of 30 are finding it almost impossible to break away from their parents financially, according to a new report published today by…
Adults under the age of 30 are finding it almost impossible to break away from their parents financially, according to a new report published today by The Co-operative.
The group has identified what it calls a "lost generation" of 18-30 year olds who are struggling to become independent in the UK's current economic climate.
In a survey, more than four-fifths of young adults (84 per cent) admitted to receiving financial support from their parents since turning 18. These individuals have asked their parents for money for a range of reasons, including daily living expenses such as food shopping costs (43 per cent) and luxuries like holidays (36 per cent).
Some eight per cent of people asked for money to assist in buying a house and a further 16 per cent of participants said they have asked their parents for help with their debts.
The report highlights how money is such a big issue for young adults in the UK, with nearly a third (31 per cent) not feeling financially independent. Almost two-thirds of individuals (60 per cent) said they were in debt of some sort.
Worryingly, the findings reveal debt is the new normality for this generation, with 77 per cent being unfazed by it.
Parents and guardians often offer to help their children repay debt, however, nearly a third of young adults are in fact hiding their debt from their parents. The Co-operative found that on average young people are lumbered with £3,579 of secret debt.
The main sources of debt for this age group are student loans (63 per cent), credit card debt (31 per cent), personal loans (23 per cent), overdrafts (19 per cent) and money borrowed from parents (18 per cent).
According to the report, over a third of young people (39 per cent) found it easy to obtain their first job, although their earning expectations do not live up to reality, with more than two-fifths (41 per cent) currently earn less than they thought they would in relation to their age and education level. On average, young adults are taking home £7,187 less than they thought they would.
Martyn Wates, deputy group chief executive at The Co-operative Group, said: "It should not be forgotten that it is these young adults who are ultimately going to shape the future of Britain for years to come, so they need support and encouragement to thrive which, in turn, will only be positive for the future of the country."
By Joe White