Debt advice: Parents should 'organise their finances while their children are young'

17/02/2010

Debt management
may be needed by parents as their offspring tend to remain financially dependent on them well past the age of 18.

Research from the Children's Mutual has shown that many children still rely on their parents' money once they reach adulthood; for some this continues well into their 30s.

According to the study, 93 per cent of adult children, who have been nicknamed Kippers (Kids in parents' pockets eroding retirement savings), are still receiving financial help from their parents.

Yet, with only 13 per cent of parents having planned for this additional cost, many could be risking debt by continuing to provide for their adult children.

David White, chief executive of the Children's Mutual, commented: "More than half agreed that if they'd have known when their child was born what they now know about the cost of having an adult child they would have saved more through the years, with just 13 per cent having saved regularly in preparation.

"These figures give us a very clear warning - children aren't financially independent at 18 and parents need to plan for this to save their whole family's financial future."

Posted by Fiona Smith

Tags; Young Family Finances,

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