Bank of Mum and Dad helping with day-to-day expenses

Many adults are relying on their parents to make ends meet and avoid taking on debt, new research has found.

Typically, the Bank of Mum and Dad refers to parents helping to fund major milestones in their children’s lives, such as weddings and buying a property.

But new figures from NatWest show that people are increasingly relying on their parents to cover day-to-day outgoings, such as:

• groceries and household expenses - 18%
• car payments or insurance - 15%
• meals out - 13%
• utility bills, such as gas, water and electricity - 12%
• holidays - 12%

Parents helping children avoid debt

For many, the only alternative to drawing money from the Bank of Mum and Dad would be getting into debt.

Nearly one in five people said that if they couldn’t rely on their parents, they would consider taking out a loan.

Meanwhile, a similar number said that without parental help, they’d take out a credit card, and almost one in ten said they’d use an overdraft.

Young adults rely the most on parental help

The Bank of Mum and Dad is subsidising people in most age groups, but the level of help varies across the board.

For example, more than half of 18 to 24-year-olds said they had received money from their parents in the last year.

That compares with nearly two-fifths of 25 to 34-year-olds and one-fifth of 45 to 54-year-olds.

Don’t miss out

If you’re struggling to balance rising living costs with saving for future goals, then it might be time to see what help is available.

Use our benefits calculator to find out what state support you could be eligible for, or get in touch for free advice.