Brits Under 30 Still Lean On Parents For Cash

Looks like mum and dad are getting more than they bargained for when it comes to supporting their children after reaching adulthood. Instead of putting savings away for a retirement home in Cornwall, a new study reports that parents still need to support an under-30 generation that is struggling to break free financially.  

According to a recent survey conducted by ICM and released by The Co-Operative Group, the majority of young adults are relying heavily on their parents to pay for basic items such as groceries (43 percent), holidays (36 percent), debt payments (16 percent) and house purchases (8 percent). The survey questioned 1,500 British adults aged 18-30.

Thirty-one percent of participants claimed they do not feel financially independent. Moreover, the report implied a generally relaxed attitude towards debt, with nearly two thirds (60 percent) admitting to having some debt. Debt has become more pervasive and several young adults reported to owe money to student loans (63 percent), credit cards (31 percent), severe overdrafts and fees (19 percent) or money borrowed (18 percent). The normality of debt has caused 77 percent of younger generations to admit they are not worried or alarmed by their debt.

More than 84 percent of participants have asked their parents to help pay off their debts and other payments, but almost a third of them admitted they still hide other debts from their parents. The average young adult in the UK is hiding £3,579 worth of debt from their family.

The debt generation can be theoretically attributed to a number of reasons, including the lackluster economy and scant employment opportunity. Sixteen percent of individuals said they were working at jobs that did not match their qualifications. Earning expectations are falling short as 41 percent said they earn less than what they expected for people of their age, credential and experience. People aged 18-30 are earning £7,187 less than they thought they would.

The participants’ morale is not helping the debt crisis, as the report uncovered that 40 percent of young adults are feeling less ambitious and dissatisfied with their achievements. The report revealed that due to the circumstances, many are suffering from stresses such as not having enough money to buy luxuries (38 percent), weight concerns (33 percent) and a lack of sleep (32 percent). 

The change in the economy may be leading the new younger adults to feelings of disillusionment and helplessness when it comes to financial independence. Despite the growing debt culture, this generation will need to compensate through revaluating budgets and accepting viable realities in terms of income and employment.

Donna Dawson, a psychologist commenting on the report in the Co-operative Group press release, stated, “In order to help this generation to cope better, parents should encourage independence, initiative and self-sufficiency. This is turn will generate the self-confidence needed to tackle work and money issues, as well as help them develop a more realistic outlook during an uncertain economy.”

To read the full report at the Co-operative Group click here.