It’s normal for parents to want to help and support their kids, but should that support continue well into adulthood?
According to a new study conducted by finder.com.au, more than five million Australians are helping their grown-up children financially on a regular basis – with one in five parents still paying for their offspring’s groceries.
Parents are also helping with home loans, paying for phone bills and letting their adult children live rent-free.
The survey of 2,001 respondents found a shocking 61 per cent of parents support their kids financially, with 22 per cent admitting they simply offer to help. “Sixteen percent of parents help their offspring because their kids struggle to manage their own money,” the study read.
The research also showed 10 per cent of parents help their grown-up children because they don’t have a job, while nine per cent give financial support because their kids are already in debt.
However, money expert Bessie Hassan warned if parents are always stepping in, their kids may not understand the true value of money.
“There’s no denying the transition to adulthood can be confronting, especially with the rising cost of living, but leaving the money ‘training wheels’ on for too long can do more harm than good,” she said.
“It can’t always be mum and dad to the rescue. Giving too much support can make it harder for young adults to understand the true value of money, and how to manage financial adversity when things don’t go to plan.”
The study found 16 per cent of parents give their adult children money towards a deposit on a house or car, while 14 per cent pay their household or mobile phone bills, and 19 per cent pay for their groceries.
But the continued support from parents could be making it harder for young adults to learn financial independence.
“Millennials often get a bad rap for being lazy, but remember young Australians are studying for longer these days which may delay their entry into the workforce,” Hassan added.
It was also found that 11 per cent of parents help their kids because they’re studying and a further 11 per cent provide support so their children can save for a house deposit.
And while parents are happy to support their children, it could potentially cut into their retirement funds. “Giving your kids some tough love will also ensure you have enough stashed away to enjoy your twilight years,” she said.
If your children need financial support, or is living at home, Hassan recommends setting up an agreement. “Whether it’s getting them to help with household chores or contributing to the grocery bill, there are many ways you can teach them good financial habits while continuing to support them,” she advises.