Adults struggle to support both children and parents banking

Published on 5 December 2016 by Raffick Marday

Adults struggle to support both children and parents banking

Recent research has shown that a significant number of adults have been attempting to support both their children and parents financially, but it’s proving to be a struggle as the UK returns to recession.

The Co-operative bank released the first from a number of reports named ‘Modern Families and Households’ which indicated a modern trend where adults attempt to fund both their children and parents.

Experts have said this ‘modern trend’ has occurred because parents are having children later on in life nowadays and people are living longer.

However, it seems due to the current economic climate, a large number of parents are struggling to find the funds to continue to provide support for their children and parents.

The findings showed that more than 1 in 7 (15%) who currently have children living in their home are also providing financial support at the same time as they are to their parents.

According to the research, parents who currently have children aged below 18 years living at home are struggling the most financially.

This is because, on average, £3,505 is being paid out each year to support their children as well as parents.

Therefore, nearly a fifth of the average UK ‘take home’ salary is being put towards financial support for parents and children.

Robin Taylor, Head of Banking at The Co-operative comments: "The report shows how the changing nature of modern families and cost pressures of living in the current economic climate, are placing real financial pressures on the shoulders of today's middle generation."

It seems that parents continue to fund their children once they reach 18 years of age thanks to the rising costs of living and property.

Taylor concluded: "Compared with previous generations, the higher costs of housing, providing care for the elderly and everyday living, have resulted in a squeezed generation, who are having to re-adjust their views of the lifestyle they thought they would have been enjoying at their age."

The findings highlighted that these parents are typically forking out £2,543 each year to finance the differing generations.

Parents who are financing their children should consider opening a savings bank account. It is also encouraged that parents start saving as early as possible for their child’s financial future.

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