Parents’ Budgets Unprepared for Cost of Grown up Kids
Parents are dishing out £43,190 on grown-up children, new research shows, far above the predicted amount many are saving for.
The poll of parents with children aged 18-30 years old and of parents with children aged 0-17 years old by Coventry Building Society, revealed parents end up paying more for their grown up children than they expect.
Parents of children of school age expect to pay a maximum of £29,060 for their children when they are adults on key events such as university fees, rent, a wedding, their first car, a deposit for a house, and regular hand-outs.
The actual figure the parents of the 18-30 year old children admitted they have already dished out stands at £43,189.85, meaning that parents are £14,000 short when it comes to predicting how much these events will cost.
“It is easy to think that children will grow up and be able to support themselves, but in today’s society it is likely that they will need some help,” said Rachel Haworth, Coventry Building Society’s head of marketing.
“We would encourage all parents to get into the habit of putting money aside every month to help prepare for the big events in their children’s lives.”
The research also found that 37 percent of the parents with older children had saved for their children’s future while they were growing up. Twenty one percent of the parents with younger children admitted they have no money saved for their future, and 62 percent have only saved £1,000 or less.
Forty percent of parents with older children said they wish they had started saving earlier for these events, with 70 percent of parents of children under 18 also wishing this.
To help you budget your money so you have enough to put aside each month for the future, try using a pre pay card.