'Bank of Mum and Dad' helping young adults stay afloat
Published 2 July 2012 by Joel Stanier
Parents are increasingly helping out their cash-strapped grown-up children, as living costs and the cost of life's 'milestones' increase.
An increasing number of young adults are turning to their parents to get them through in times of financial difficulty, according to research by the Bank of Scotland.
More than four in five (84%) young adults in Scotland turn to their parents for financial support, compared with just 61% in the 1980s. It's thought that the increased cost of things like going to university and buying a home may partly explain this rise.
The rising cost of living, too, is having an impact. 47% said they receive help with day-to-day living expenses, such as food shopping, compared with just 18% in the 1980s.
Greg Coughlan, Head of Savings at Bank of Scotland, said: "Much has been said about the bank of mum and dad in relation to the cost of getting on the housing ladder, but it is clear that Scottish young adults rely on financial support from their parents for a lot more than this, including day-to-day items. What's more, this support means that parents are getting a greater say in the life choices their children are making, and therefore have a greater influence on family life."
An expert at thinkmoney said that some people may find things easier if they take the time to plan a careful budget each month. "Sometimes all it takes to make your finances last through the month is to work out how much you need for your essential costs, and how much you have left over to spend as you wish. For people who struggle to do this on their own, there are bank accounts that can do it for them - such as the thinkbanking account.
"Of course, some people simply find they can't keep up with their growing living costs - and while parents can be a helpful port of call in this situation, seeking professional advice might provide a better long-term solution."
You can find out more about the personalised budgeting service that comes with the thinkmoney Current Account here.
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