You Can Always Rely on Bank 'Mum and Dad'

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by: Dick Stroud

MoneyPlus, the magazine published by Standard Chartered, has an article about the extending period that children are dependant on their parents for money. The article is actually called: “How not to be helicopter parent” – the sort that ‘hover’ over their kids every financial decision. I would think this is easier said than done.

There were a few facts in the article that caught my eye. How true they are I have no idea but I suspect they are in the right ball park.

40% of parents worry that they will be saddled with their kid’s debts

9% of men are still at home when they are in their 30s

23% of graduates are still at home and 53% have delayed buying a home by 6 years.

76% of first time house buyers (under 25) couldn’t afford a property without their parent’s assistance.

All these figures are pre-recession – so the situation now will have got even worse – assuming parents perceive having their adult children living at home and still requiring their financial help, a bad thing.

Bottom line all of this argument is that parents, many of them being 50-plus are important elements of their children’s decision making process for large capital purchases. Marketers should understand that.

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