Parents prioritise children's dreams

Over 5.5 million young people in the UK are receiving financial help from their parents in order to realise their dreams and aspirations. In some cases this could lead to their parents abandoning their own dreams for the future and potentially undermining their finances, according to The Children's Mutual.

The research by the leading Child Trust Fund provider illustrates the finances that can be needed to realise an adult child's ambitions and The Children's Mutual is encouraging parents of today's younger children to consider saving now if they want to be able to afford both these and their own retirement dreams.

Many parents of today's 20 somethings have had to raid their own savings or sacrifice their retirement goals in order to help their adult children fulfil theirs - such as attending university or buying their first home. After spending years saving to fulfil their long-standing future plans, many parents are finding that when the time comes they are faced with an either/or situation, as the funds won't cover the aspirations of both generations. Frequently parents end up choosing to help their children and thus reduce or give up their own dreams.

Nearly three in 10 (28 per cent) of today's 25 year-olds have financial support from their parents towards education, 23 per cent towards their rent and 19 per cent have financial support from their parents towards holidays and trips abroad.

David White, Chief Executive, The Children's Mutual, comments, "We are highlighting to parents of younger children that by starting to save for their child's future now, they can help avoid the struggles faced by the baby-boomer generation who regularly sacrifice their own dreams for those of their children."

Research from The Children's Mutual has shown that 80 per cent of today's 18 to 25 year-olds believe they can be ‘financially independent' while still receiving financial support from their parents and 66 per cent of those who say they are ‘completely financially independent' still get some form of financial support from parents.

Starting to save small amounts regularly over the long-term into Child Trust Funds, is one way parents of today's children could stand a better chance of fulfilling their own desires alongside being able to provide for their children as they enter adulthood.

David White continues; "Making the step into adulthood is often a strain financially. But from 2020 all 18 year-olds will be receiving their Child Trust Fund and those whose families have managed to save the maximum amount of £1,200 each year will have a fund that could be worth £37,100 upon maturity. Those who save the average amount amongst our customers of £24 a month could have a fund worth £9,750 when they reach age 18."

For more information, visit thechildrensmutual.co.uk