Many households across the UK still rely on financial help from parents to stay afloat, as the areas where most assistance is given and most needed are revealed by a study.
The cost of living is still a big problem for many households across the country. Among the many financial implications this is having, childcare costs are leaving half of parents trapped into living near grandparents to save on nursery fees. Now it's revealed that nine million adults in the UK receive a 'lump sum' from their parents to help them get by, with one in three adults needing regular financial help from their parents to live day-to-day.
The research undertaken by Wealthify indicates 1 in 5 adults in the UK are given a lump sum from their parents in adulthood, with the average amount offered standing at £15,314.48. However, 72 per cent report being given specific instructions on what to spend it on. Recipients are also are 2.5 times more likely to prioritise saving the money over paying off debt, despite expert financial advice suggesting debt is paid off before before focus turns to growing savings.
Looking at the areas parents offer the most money to their kids, the North East, West Midlands, and London come out on top, offering £23,766.53, £19,850.04, and £19,275.69, respectively. The top two areas unlikely to offer monetary assistance are Northern Ireland where 9 per cent offer funds, and Yorkshire where 13 per cent offer lump sums to their kids.
Regions offering largest sums of money to their kids
- North East - 18 per cent receive a sum averaging £23,766.53
- West Midlands - 22 per cent receive a sum averaging £19,850.04
- London (including Greater London) - 30 per cent receive a sum averaging £19,275.69
- Eastern England - 18 per cent receive a sum averaging £16,032.32
- East Midlands - 15 per cent receive a sum averaging £15,555.64
- North West - 22 per cent receive a sum averaging £14,112.27
- South West - 18 per cent receive a sum averaging £13,240.72
- South East - 16 per cent receive a sum averaging £12,964.26
- Northern Ireland - 9 per cent receive a sum averaging £11,666.5
- Yorkshire & Humberside - 13 per cent receive a sum averaging £11,590.95
Of the 1 in 3 adults relying on everyday help with finances from parents, London (41%) and Scotland (36%) are the areas kids most need their help. Around 44 per cent of 18-44 year olds still need this help, although this number steadily declines once the age of 45 is reached.
Interestingly, those who receive financial help from their parents have worse money-related habits than those who don't. Those who don't are found to be more likely to make sensible financial decisions while those getting help report being less likely to check their bank balance properly, and are more likely to use Buy Now, Pay Later schemes and find themselves in financial difficulty.
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