The Children’s Mutual - Bleak Financial Future For Parents

Parents could be facing a bleak future, owing to the rise of the ‘bungee brood’ a generation of young adults who may never sever their links to the parental purse strings, according to a new report from Child Trust Fund provider The Children’s Mutual (http://www.thechildrensmutual.co.uk/) and the Social Issues Research Centre (SIRC).

The study has identified a new generation that considers itself ‘financially independent’ while still accepting parental subsidies for everything from day-to-day living costs to house deposits. With many having no plans to repay their debts (and apparently no parental expectation for them to do so).

According to the report, four in five respondents (80per-cent) felt that they could be ‘financially independent’ while still receiving financial support from their parents and two thirds (66per-cent) of those who classed themselves as ‘completely financially independent’ received subsidies from their parents. While financial assistance towards university fees, mortgage deposits and paying for weddings were all identified as key pulls on the parental purse, the report also uncovered a generation of youngsters receiving financial support by paying little or no rent (39per-cent), and receiving contributions to their bills (17per-cent) and day-to-day living expenses (41per-cent).

David White Chief Executive of The Children’s Mutual, said: “There has been a major change in the dynamic of family finances and it needs to be dealt with now as the problem could be growing for anyone who has, or is planning to have, children. Child Trust Funds are one way of providing the parents of today’s youngsters with an opportunity to lay financial foundations for their children’s futures. With more than four million children in the UK now in receipt of a Child Trust Fund voucher, and 37per-cent of young adults in our report saying that having a savings fund would secure their independence, we are on the way to changing attitudes to saving for the longer term.”

Peter Marsh, Co-Director, Social Issues Research Centre said; “Since the beginning of the twentieth century the flow of money between parents and children has been changing direction and ideas surrounding children and their upbringing have become more romanticised.”

For further information and a full copy of the report http://www.thechildrensmutual.co.uk/research

The only company that specialises in savings for children and the choice of 1 in 5 parents for their Child Trust Fund.

Stephanie Quantick:
The Children's Mutual
Tel:+44(0)1892-775-348
Email:stephanie.quantick@thechildrensmutual.co.uk
Web:http://www.thechildrensmutual.co.uk/
Add: Freepost RLRZ-ZAZZ-GACY
The Children's Mutual
PO Box 2067
Gloucester
GL4 3YU

This release was published on openPR.