North East parents pay £600m a year to support adult children

North East parents spent £600million supporting their adult children last year.

Published 1st Mar 2016

North East parents spent £600million supporting their adult children last year.

New research from the Post Office Money Savings shows one in five fully support the lifestyles of their kids - so that’s day to day costs, driving lessons, and holidays - the lot!

Of those that have provided financial support over the past five years, it’s amounted to £3,343 (£669 per year).

These are some of the main things parents fork out for:

How parents/grandparents in the North East financially support their children:

Day-to-day expenses

47 per cent

Holiday

33 per cent

University fees and accommodation

9 per cent

Driving lessons

29 per cent

Household bills

22 per cent

New car or running costs

21 per cent

Paid off their debt

16 per cent

Over two thirds of parents and grandparents say they’re happy to support their offspring financially but experts warn it could be damaging to gaining independence.

Henk Van Hulle, Post Office Money Savings, said:

*“Many of today’s millennials** face an uphill struggle in establishing themselves as financially independent; soaring house prices, the expectation they should be saving for retirement, and meeting day-to-day living costs can add up to significant challenges when it comes to managing their finances.

“We understand that parents feel it is their duty to provide financial support for their struggling children, but it’s also important that they don’t sacrifice their own financial stability. So if people do want to support their children, it’s never too early to think about saving.”