Children can no longer rely on parents to fund major expenses
Nov 01, 2006
Parents are becoming increasingly less willing to fork out for their children's expenses such as university costs or buying a car, new research shows.
A survey from Bradford & Bingley found that only 29 per cent of adults aged 45 to 54 expected their offspring to save for further education or the deposit for their first property. However 52 per cent of adults in the younger age group of 25 to 34-year-olds said that they expected their children to save for these events.
The Bradford & Bingley survey indicated that if the trend of parents expecting their children to save continued, eventually this traditional source of funding for young people would dry up. But while many parents expect their children to have some savings, many will want to help their nearest and dearest out with paying for a new car or housing deposit and some may choose to take out loans to help their children with major expenses. Other factors causing the shift in behaviour could be worries over pensions, extending retirement ages and increasing inheritance tax burdens.
Around one in three of the parents asked expected their children to have saved £2,000 or more by the time they reached 18.
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