Adult kids rolling in cash from parents

ALMOST three-quarters of Australian parents are giving their adult children financial help.

From paying bills and university fees to buying household goods and even homes, it’s been labelled as “sponge society” but others say it simply reflects parents transferring their wealth earlier in life when children need it more.

It has also created a large group of young adults who feel guilty about receiving the handouts.

Comparison website finder. com.au surveyed more than 2000 people and found that 74 per cent of parents said they were giving financial help to their children aged over 18, while 28 per cent of recipients said they were embarrassed or ashamed about it.

Spokeswoman Bessie Hassan said rising property prices, large tertiary education debts and the growth of unpaid internships were contributing to the giveaway.

“If you insist on giving money to your child, consider making it a loan with strict conditions on when and how it is to be paid back,” she said.

“Some children may feel embarrassed to receive financial help from their parents because it strips them of their financial independence and it may make them feel inadequate if they have to rely on the bank of mum and dad.”

The Finder research found South Australians were the most independent, while it described Victoria as the biggest “sponge state” with 65 per cent of adult children receiving financial help.

Social researcher Mark McCrindle said that young Australians should not feel guilty about accepting financial help.

“They should receive it with grateful thanks and hopefully have an attitude of passing it on themselves,” he said.

Mr McCrindle said there had been social change in recent decades and parents no longer saved to leave a large estate for their children.

“Now it’s reversed and the giving of money takes place when the children are younger,” he said.