3.7 million parents2 with adult children (19%) are continuing to give them money into adulthood in order to help them save, as the broader economic climate continues to squeeze personal finances, according to Aldermore’s latest Savings Tracker3.
While many will be financing this through their disposable income, a significant number of parents (33%) are resorting to tapping into their long-term savings pot to provide for their adult children.
Parents are concerned about their adult children’s savings habits
Instilling healthy savings habits is at the forefront of parents’ minds with eight out of ten (80%) parents believing it is their duty to teach their children how to save.
However, two out of five parents with adult children (41%) are concerned that their kids aren’t setting aside enough money.
Parents continue to support children’s home ownership dreams
Homeownership is a key goal for many young adults but savers now expect to squirrel away money for years before being able to get on the first rung of the property ladder. Parents are helping where they can, with nearly two out of five (38%) either having already helped or planning to help their children with a deposit for their first home.
Alex Myers, director of savings at Aldermore, adds:
“It’s only natural that parents will want to help their children continue to build their financial reserves. It’s also likely we’ll see this trend continue for some time, as the effects of the cost-of-living crisis continue to reverberate. However, it’s important where possible for parents to strike a balance and consider their own financial goals such as retirement and long-term care costs. Only then can they ensure their own personal savings goals are realised.”
**Ends**
Notes to editors
1On a nat rep survey of 3,000 UK adults, 765 are worried that my children aren't saving enough. 457 / 3000 * 53188000 (UK adult population) = 8,102,000 (shorthand 8.1 million)
2On a nat rep survey of 3000 UK adults, 207 give their children (18 or older) money regularly to enable them to save. 207 / 3000 * 53188000 (UK adult population) = 3,700,000 (shorthand 3.7 million)
3Research conducted, on behalf of Aldermore bank, by Opinium between 22nd December 2023 – 4th January 2024 among a nationally representative sample of 3,000 UK adults
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