Everyone’s guilty of borrowing the odd quid from the ‘Bank of Mum and Dad’ every now and again, but have your kids turned into ‘kidults’ (adults who live like kids)?
In today’s financial climate, it’s harder than ever for young adults to fly the nest and when you consider high rent and unaffordable house prices, it’s not surprising that the prospect of staying at home seems like the best option. But have you thought about how much your adult children are costing you? A recent study commissioned by Keepmoat, questioned 1,000 parents with children over the age of 21 still living at home on how much their kiddies could be costing them and the results were very interesting…
Looking into a wide range of factors including food bills, electricity, broadband and home insurance, Keepmoat found that grown-up kids could be costing their parents up to £2,000 a year. When you consider that the majority of children who live at home after the age of 21 do so until they are over 30 years old, they are costing their parents a grand total of approximately £20,000 a year.
So what excuses do they have? 34% of young adults still living with Mum and Dad claim that it is because they are saving for a deposit. Trust us, it is bound to cost you more if they continue to stay home and with deposits out there for as little as £5,000, surely it’s better to get your children on the property ladder asap rather than forking out a fortune for them to live at home with you.
Tim Wray, finance director at Keepmoat, says: “The cost of raising a child from birth is in the hundreds of thousands, there has been little research around the cost after the age of 21. […] In an era of sky high rents and a perceived unreachable property ladder, it is a phenomenon we are only going to see more and more of.”
So parents, it’s up to you where you go from here. Even if you don’t have a huge amount to put towards your children’s deposits, there is so much help out there such as the Help-to-Buy scheme. All Keepmoat homes are available to buy with the Help to Buy scheme, meaning that getting on the property ladder isn’t as hard as everyone makes out!
To work out how much your kids are costing you, try out Keepmoat’s calculator at https://www.keepmoat.com/bank-of-mum-and-dad/.
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