Parents pour cash into children’s dreams

Parents are providing financial help to over 5.5 million twenty-somethings to help them realise their dreams such as attending university or buying their first home, according to research from The Children’s Mutual.

28% of today’s 25 year-olds have financial support from their parents towards education, while 23% get help towards their rent and 19% receive help from parents to cover holidays and trips abroad.

The report authors have warned that this generosity could lead to parents abandoning their own dreams and undermining their finances, and recommended that parents of today’s younger children start saving now if they want to be able to afford both these and their own retirement dreams.

After spending years saving for their own future plans, many parents could find themselves forced to choose their own and their children’s aspirations.

David White, Chief Executive, The Children’s Mutual, said:

“We are highlighting to parents of younger children that by starting to save for their child’s future now, they can help avoid the struggles faced by the baby-boomer generation who regularly sacrifice their own dreams for those of their children.”

“Making the step into adulthood is often a strain financially. But from 2020 all 18 year-olds will be receiving their Child Trust Fund and those whose families have managed to save the maximum amount of £1,200 each year will have a fund that could be worth £37,100 upon maturity. Those who save the average amount amongst our customers of £24 a month could have a fund worth £9,750 when they reach age 18.”

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