How the ‘Bank of Mum and Dad’ is help­ing mil­len­ni­als pay their way

Western Mail - - PERSONALFINANCE -

A SUR­VEY of 21 to 35-year-olds has found a quar­ter (26%) still live at home. While this may not al­ways be easy – for par­ents as well as their adult off­spring – the re­search from Ex­pe­rian found 84% of adult chil­dren are tak­ing ad­van­tage of the sit­u­a­tion by sav­ing reg­u­larly, on av­er­age putting £205 away per month.

■ What mil­len­ni­als are sav­ing for

Pop­u­lar sav­ings aims for this gen­er­a­tion in­clude buy­ing a home (34%), clear­ing debt (19%), go­ing trav­el­ling (13%) and own­ing a car (5%), Ex­pe­rian found. As well as sav­ing, more than half (55%) of mil­len­ni­als ad­mit to seek­ing fi­nan­cial sup­port from their par­ents in the past two years.

The “Bank of Mum and Dad” is called upon to pay for ev­ery­day es­sen­tials like gro­ceries (18%) – more so than larger pur­chases such as house de­posits (13%) and hon­ey­moons or wed­dings (9%), the re­search sug­gests.

Of those Mil­len­ni­als who no longer live at home, in the past two years nearly one in 10 (9%) have needed their par­ents to pay their rent or monthly mort­gage re­pay­ment, and 7% for a house­hold bill.

■ How the old­est mil­len­ni­als are

be­ing funded

Some 15% of 31 to 35-year-olds have been on a hol­i­day funded by their par­ents in the past two years, and 12% have had their weekly or monthly food shop bought for them.

One in 10 have been taken on a “shop­ping spree” and 14% have had their par­ents buy them a car, or pay for another mo­tor­ing ex­pense such as in­surance, re­pairs or an MoT or ser­vice. And how the youngest mil­len­ni­als are mak­ing ends meet

Some 30% of the youngest mil­len­ni­als, aged 21-25, have sought sup­port from their par­ents to pay for their gro­ceries and, for those who live in­de­pen­dently, 13% for their rent or mort­gage re­pay­ment, and 9% for a house­hold bill.

The re­port also re­veals 22% of the youngest mil­len­ni­als have had a hol­i­day paid for by their par­ents, and an ad­di­tional 12% re­ceived money from their par­ents while they were away. Ex­pe­rian has de­vel­oped a new tool for mil­len­ni­als to help them reach their per­sonal sav­ings goals. Visit www.ex­pe­rian.co.uk/con­sumer/help-dis­cover/dis­cover/ sav­ings-cal­cu­la­tor.html

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