Pass On Your Financial WisdomPosted on: 16 September 2008 by Gareth Hargreaves
What financial advice would you pass on?
Parents spend an average of £21,540 on supporting their adult offspring, and are foregoing their own financial freedom to support their children, reveals new research from insurance, pensions and investments group LV=.
The study, which was carried out amongst adults aged 40 years and over who have children 18 years and over, found that nine out of ten parents continue to contribute financially towards education and other major purchases such as houses and cars, plus living expenses, once their children have reached 'adulthood'.
Over half of all parents surveyed admitted to helping their adult children with general living costs, indicating that the credit crunch and rising living costs are impacting on the finances of adult children.
It's been tough for first time buyers, as house prices rose dramatically, and now the market is cooling making it harder to get a mortgage. 63 per cent of parents have contributed more than £3,000 towards their adult child's first home, with 31 per cent contributing more than £9,000. One quarter of parents aged between 40 and 49 years still have children aged over 25 years old living with them.
According to the research, it is not just their own children that parents are forking out for. Of those parents who have grandchildren too eight out of ten find themselves supporting both their own children and their grandchildren. This equates to 2.3 million 'grandparent' households. Nearly half of those who contribute towards their grandchildren help out with money towards savings and investments, while one third help out with the cost of travelling.
In light of the credit crunch, what financial wisdom would you pass on to your children or grandchildren?
How would you advise them to cope with a tight budget or step onto the property ladder?
Are young people too used to cheap credit and instant gratification - should they be saving rather than spending?
In the wake of pensions mis-selling, the Government's tax raid on funds, and the threat of means-testing, would you tell younger generations to bother saving for the future?
Did you receive financial help from your parents, and do you give money to your children? Why or why not?
Are your grown-up kids bleeding you dry?
You can share your experiences and views by leaving a comment below, or discuss money matters with others in the 50connect forum.
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