More young Scots need parents' help

Reporter

Monday 2 July 2012

MORE young Scots than ever before are relying on handouts from their parents as they try to make a start in life, a survey has found.

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Jody Harrison

The number of young people turning to their parents for financial support has grown by one-third in the past 30 years, according to the Bank of Scotland.

The bank's economists say young adults need more help now than in the 1980s because of the uncertain economic climate and rising cost of leaving the family home, with many finding it difficult to pay for the essentials in life.

According to the survey, the chief life milestones that require children to turn to their parents for help are costs associated with going to university and buying a first home. Parents are also expected to be there to help with rent payments, day-to-day living expenses, and buying large items such as cars, furniture and even televisions.The situation is in stark contrast to past years, where young families were able to establish themselves without the help of their parents or extended family.The Bank of Scotland report was based on a survey of 1500 adults in the UK, and covered both the attitudes of children towards their parents and parents' views on helping their offspring financially.It found almost one-half of young adults in Scotland receive their parents' help with day-to-day living expenses, compared to just 18% in the 1980s.The proportion of people receiving their parents' help with rent payments has trebled during the same time, from 8% across the UK to 30% in Scotland today, while the proportion of young adults receiving their parents' help buying large items such as cars and televisions has grown from 24% to 40%.With the economic outlook gloomy, most people believe the cost of leaving home is set to increase, with nine out of 10 saying they believe the cost of higher education or buying a home will increase in years to come. However, only one in five Scots think the wages of ordinary workers will rise enough to keep pace. More than three-quarters of adults believe financial support from parents will become more important for children's success in life.The study also found family ties remain strong in Scotland, with a majority of people saying thoughts of home are paramount when they make decisions about their finances.Almost three-quarters of Scottish adults say they would be letting their family down if they did not save for the future. Greg Coughlan, head of savings at Bank of Scotland said: "Much has been said about the bank of mum and dad in relation to the cost of getting on the housing ladder, but it is clear Scottish young adults rely on financial support from their parents for a lot more than this."

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More young Scots need parents' help

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