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