Parents Taking Out Loans To Fund Adult Children
Anyone who has, or has had, children will be only too well aware of just how much money they cost to bring up. The majority of parents live in the hope that one day their kids will grow up and leave home, relieving them of the financial burden they have suffered for the past 18 years or so.
But a recent survey amongst parents, conducted by the Children’s Mutual, has found that children are still a financial burden for their parents, even when they become adults and allegedly become independent.
The survey found that around 93 per cent of parents have provided financial support to their children aged between 18 and 30 and on average this has cost them £30,000 each!
Many parents have taken out personal loans in order to fund their children and 28 per cent of parents even say that they have taken out a new home owner loan and remortgaged their house to help their kids.
In a large number of these cases, this has been to help their children to raise a suitable deposit when they are applying for their first home owner loan or mortgage, but often the funding is simply to help their children meet their monthly bills and help them to repay their own personal loans and other debts.
This is clearly a big problem for many parents, who are cutting back on their own lifestyle in order to support their adult children, in some cases, this is even stopping them from funding their own retirement plans.
David White of the Children’s Mutual said “These figures unveil the stark reality of the cost of being a parent. No longer does turning 18 mean financial independence, in fact 16 per cent of parents questioned expected their child to remain financially dependant on them in to their thirties and beyond.”
