Should parents still be bailing out their adult "kids"?
Every parent expects to spend a fortune on their children when they are at home and dependant on them financially, but what many don't bank on is the fact that they will still be having to bail out their kids even when they're all grown up. According to some new research by Scottish Widows, adult children still cost their poor parents about 12,000 a year as they struggle to cope with financial independency.
With the housing market as difficult to tap into as it is currently, and with so many young adults coming out of education with mountains of debt, one of the biggest expenses for parents with adult children is the money for a deposit on their first house; about a third of parents who give money to their kids are doing it to help them get onto the housing ladder, with many more even helping out with mortgage repayments and in some cases, even becoming joint mortgage holders with their kids.
Another big expense for parents is their kids' cars €" loads of parents are forking out for insurance and money for repairs, and it is not even their own car! And with others paying for their kids' debts, university fees and even living expenses in some cases, it really is a costly business.
According to the research, parents are spending 67million on their grown-up kids, and for many, this was supposed to be retirement money!
But is it really the kids' fault? This generation, i.e. the 18-30s, is one of the 'hardest up' for years; house prices are still sky high, wages are not going up inline with the cost of living - especially with the massive hikes in energy bills, petrol and food - while education is more expensive than it has ever been.
Young adults are trying to be independent, but when you come out of university with upwards of 10,000 of debt, and then try and scrape money together for a home, it is not easy, and with the 50+ age group being the most comfortable financially, it is an obvious relationship €" ' well off' parents help out their 'poor 'children.
Many of course are not happy taking hand outs, and will go for other options, like taking out a loan before admitting to their parents that they need help with money. However, if done sensibly, and with a payment plan in place, loans are fine, and can really help young people get themselves set up or to consolidate any other debts, get their finances straight and start being independent.
There is much in the press about how ungrateful kids can be, and how they are being spoiled by their parents, and yes, in many cases kids are taking their mums and dads for a ride. This is especially true for young kids who are demanding the latest trainers, mobile phones and whatever else. But for those in their 20s who have done everything right €" got a good education, got a good job, saved up for a deposit - they are left to discover that they still have nowhere near enough to buy a home, especially not if they're single.
So, although life is pretty tough financially, and with nearly two thirds of parents saying that they are happy to help out, and kids more than happy to take their handouts, is it really such a bad thing?
With the housing market as difficult to tap into as it is currently, and with so many young adults coming out of education with mountains of debt, one of the biggest expenses for parents with adult children is the money for a deposit on their first house; about a third of parents who give money to their kids are doing it to help them get onto the housing ladder, with many more even helping out with mortgage repayments and in some cases, even becoming joint mortgage holders with their kids.
Another big expense for parents is their kids' cars €" loads of parents are forking out for insurance and money for repairs, and it is not even their own car! And with others paying for their kids' debts, university fees and even living expenses in some cases, it really is a costly business.
According to the research, parents are spending 67million on their grown-up kids, and for many, this was supposed to be retirement money!
But is it really the kids' fault? This generation, i.e. the 18-30s, is one of the 'hardest up' for years; house prices are still sky high, wages are not going up inline with the cost of living - especially with the massive hikes in energy bills, petrol and food - while education is more expensive than it has ever been.
Young adults are trying to be independent, but when you come out of university with upwards of 10,000 of debt, and then try and scrape money together for a home, it is not easy, and with the 50+ age group being the most comfortable financially, it is an obvious relationship €" ' well off' parents help out their 'poor 'children.
Many of course are not happy taking hand outs, and will go for other options, like taking out a loan before admitting to their parents that they need help with money. However, if done sensibly, and with a payment plan in place, loans are fine, and can really help young people get themselves set up or to consolidate any other debts, get their finances straight and start being independent.
There is much in the press about how ungrateful kids can be, and how they are being spoiled by their parents, and yes, in many cases kids are taking their mums and dads for a ride. This is especially true for young kids who are demanding the latest trainers, mobile phones and whatever else. But for those in their 20s who have done everything right €" got a good education, got a good job, saved up for a deposit - they are left to discover that they still have nowhere near enough to buy a home, especially not if they're single.
So, although life is pretty tough financially, and with nearly two thirds of parents saying that they are happy to help out, and kids more than happy to take their handouts, is it really such a bad thing?
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