The Children's Mutual Reports Growth Of Parents Funding Their Adult Children
on: February 19, 2010, 5:30 am
Author: The Children's Mutual
The Children's Mutual, a leading Child Trust Fund provider,
has revealed that the cost of having adult children is hitting parents
hard, with its new research showing they expect the cost of supporting
an 18 to 30 year old to exceed £30,000. Their findings highlight the
growth of a generation of Yuckies (Young Unwitting Costly Kids), with
93% of parents funding their adult children.
Yet many of these parents haven't planned for the costs and are putting their own
financial futures on the line - 28% have either remortgaged or plan to remortgage to
fund their Yuckie, with more than half of all parents borrowing to assist with
The Children's Mutual also found that it's
the Yuckies who are necessitating everyday purse tightening in families - two thirds
of parents say they have had to or will reduce their day-to-day living costs to fund
their adult child, from shopping more economically for food (28%), selling their
cars (7%) and monitoring the use of heating and lighting at home (42%).
David White, Chief Executive 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% of parents questioned expected their child to
remain financially dependent on them into their thirties and beyond.
"The families we questioned had just one message for parents whose children are
still young - save, save, save. 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% 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."
Child Trust Funds are
designed to provide a tax efficient, long term savings vehicle for all eligible
children. Each eligible newborn child (born on or after 1 September 2002) receives a £250 Child Trust Fund voucher (£500 for low income families) from the government when their parents register for
Child Benefit. The government will make a second contribution of £250 (£500 for low
income families) when the child reaches seven and is considering a third in the
child's teenage years. Parents, family and friends can all then add to this account
up to a maximum value of £1,200 each year.
- Ends -
Notes to editors
Research from The Children's Mutual research was undertaken by 72 Point during
January 2010 and polled 1,484 parents of children aged 18 and over.
About The Children's Mutual - Home of the Child Trust Fund
The Children's Mutual's mission is to help parents, grandparents, family and
friends fulfil their hopes for today's children. The Children's Mutual is the only
UK company that specialises in long term savings for children and is now the choice
of one in four parents for their child's Child Trust Fund, with more than 750,000
accounts. This expertise has led several financial institutions and family-focused
high street retailers to choose The Children's Mutual as their stakeholder Child
Trust Fund provider.
The Children's Mutual PR contact:
22 Endell Street
020 7781 2376