13 million UK parents bail out adult children financially, new research has found.
Parents paid out £34 billion to these ìadult – dependentsî in the last year with some grown up children well into their 40s borrowing cash, according to Sainsburyís finance.
Parents are lending money to their children aged over 18 for many reasons. £8.4 billion has been lent out towards mortgage or rental deposits or payments, £3.5 billion for home improvements and £2.2 billion to pay off debts.
More than £1.6 billion has been lent or given to children over the age of 18 and student living expenses by their parents in the last year.
With the rising cost of higher education parents struggle to cope financially. The student cost of living has risen by an average of £41,56 a month in the last year.
According to Family Investments, rent is the biggest single expense and the average student currently spends £163 a month on accommodation, up slightly from £156 a year ago.
A combination of higher tuition fees, a slow job market and the increased cost of living have caused many to turn to their parents financially. Saving can be difficult for students and parents alike, especially when the number of ìadult ñdependent î children is on the rise.
Saving does not have to be a huge burden; by changing daily habits you could make a difference to your finances.
Set aside a budget, big or small it will help you to discipline your spending and increase your awareness of how much you are spending. By having an end goal it gives you something to aim for whether you want to pay off your debts in one year or aim to consolidate your loans into one account, having a deadline allows you to work towards reaching your financial target.
2. Clear most expensive debts first
Aim to clear the debts that cost you the most first or find an alternative to reducing the interest you accumulate on that debt. Credit cards tend to be the most expensive form of debt. By comparing different credit cards you could transfer your debts onto a low cost card you could save money.
3. Make a shopping list
Whether youíre about to become a student or paying off your mortgage, a spending habit which can be changed easily is your attitude towards food shopping. Stick to supermarket own brands and make a list before you go out so that you know exactly what you need and donít end up spending more. Never shop on an empty stomach, as you are more likely to buy food that appeals to your hunger pains not your wallet.
Do you still spend money on your adult children? Or are you against helping your family out financially, apart from during emergencies?