Every parent knows that children are expensive. From nappies, to food, to clothes and shoes – children cost money.
A study by the Child Poverty Action Group on the Daily Mail shows that the average cost of raising a child up to the age of 18 stands at £148,000, which just covers their basic needs such as food and housing. This figure, when broken down, works out at £160 per week for a child of any age. Many parents think that they will need to pay for their child up to the age of adulthood and then the child will fly the nest and pay for themselves. However, this is not always the case.
Fidelity Investments have found that even grown up children who have left home are still relying on their parents to financially support them – to a tune of £23,059. The reason why many parents still financially support their grown up children varies but 65% of parents said: “I wanted to because I love them” while 17.7% said they felt it was expected of them as they are indeed the parent. 12.7% of parents also claimed they had no choice and the remaining 4.6% said it was because of other reasons.
The average age of grown up children needing financial support is 26-years-old, however the Fidelity Investment research showed that 10.10% of parents are still helping their grown child who falls into the 40+ category. While many parents may feel that they want to help their children because they love them, 48.70% have said that they now have less savings because of this and 12.90% have said they have had to delay their retirement.
It is now becoming a growing trend for parents to financially help their children well into their adult lives but the reasons for this are still different. From October to December 2014, 740,000 people aged 16-24 were unemployed which could have an effect of their parents needing to support them. Also, the struggles faced by young people trying to get on the property ladder could also impact the need for parents’ help. It has been said that single people in their twenties will now need up to 30 years to save for a deposit and some may be locked out of the housing market for good. Grown up children are having to turn to the bank of mum and dad in order to be able to afford a deposit.
With all the costs being incurred to both parents and grown up children (housing, tuition fees, unemployment), parents can only continue to manage their own finances and help their off-spring manage theirs.