Parents can expect to hand over more than £30,000 to help their children through life's biggest financial milestones, according to new research from Yorkshire Building Society. The pressure to help out has mounted due to soaring housing costs and wider economic pressures that make it harder for younger generations to stand on their own two feet.
The cost of helping out
The modern 'Bank of Mum and Dad' will contribute an average of £30,209 towards key events ranging from learning to drive and going to university to buying a first home and getting married. The biggest single expense is helping with a property deposit, where parents who provide support contribute an average of £10,784.
They also expect to pay £8,029 towards university costs, £5,180 towards a wedding or civil partnership, £2,947 for a first car and £1,700 for driving lessons.
What parents expect to contribute
- House deposit: £10,784
- University costs: £8,029
- Wedding: £5,180
- First car: £2,947
- Driving lessons: £1,700
- Total: £30,209
The figures underline the growing financial burden facing parents as younger adults struggle with high house prices, rising living costs and the expense of higher education. Despite already expecting to contribute substantial sums, 66% of parents said they wished they could provide even more financial help.
Savings and concerns
The study of 2,000 parents found 77% have already saved towards at least one major milestone in their child's life. Saving for a house deposit was the most common goal, cited by 22%, followed by building an inheritance (21%), driving lessons (18%), a first car (18%), an emergency fund (18%) and a wedding or civil partnership (17%).
The research comes as family financial support has become increasingly important for aspiring homeowners. Recent analysis shows 31% of first-time buyers receive help from family or friends with their deposit, while the average first-time buyer deposit in England now exceeds £78,000.
Parents also expect to continue supporting their children well into adulthood, believing they will become financially independent at an average age of 28.9. Remarkably, 4% think they will still be providing financial support after their children have passed the age of 50.
Widespread anxiety
The survey highlights widespread anxiety about the financial outlook facing younger generations. Nearly four in five (79%) parents said they were concerned about the impact of the current economic climate on their children's future finances, while 89% believe their children will face greater financial challenges than they experienced at the same age.
More than half (58%) think it is now too difficult for their children to save enough to buy a home, while 51% believe building long-term financial security is difficult without family support. When asked about their hopes, parents said they wanted their children to achieve financial independence (55%), enjoy a stable career (54%) and be able to save for major life events (41%).
By the age of 30, parents hope their children will have enough disposable income to enjoy life (58%), own their own home (51%), be debt-free (45%) and be living independently (40%). The support often stretches beyond life's headline milestones. Parents also expect to help with rent, emergency savings, childcare and lump-sum gifts, while the average planned inheritance or money intended to be left to children is £15,939.
Tina Hughes, director of savings at Yorkshire Building Society, said: "Every parent wants to help their child achieve the moments that matter most in life, whether that's learning to drive, going to university, buying a first home or celebrating a wedding."
"Our research shows just how significant that support can be. For families who can afford it, the Bank of Mum and Dad is helping bridge the gap between aspiration and reality, providing financial support at key stages throughout life."
"But it's important to remember that support doesn't have to mean saving tens of thousands of pounds. Even small, regular contributions can build up over time and make a meaningful difference, helping children take their first steps towards achieving their goals with greater confidence."
"While parents continue to aspire for their children to become financially independent, many recognise the challenges younger generations face. That's why we're committed to helping people save towards life's important milestones and supporting them through every stage of their financial journey."
