subscribe to our newsletter

Three-quarters of parents still pay for adult children

Around 74 per cent of parents continue to provide financial support to their adult, working-aged children, despite financial handouts from parents “occurring to a lesser extent”, a new survey has revealed.

A survey by Australian comparison website Finder.com.au found that nearly three-quarters of parents provide financial aid to their grown-up children to help with large items such as first home purchases, rent, university fees, and white goods, as well as smaller items, such as bills.

The survey suggested that Victoria was the “biggest sponge state” with 65 per cent of people getting financial help from their parents.

Of the sexes, more women than men received financial help from parents, with daughters receiving “almost twice as much financial help with a significant purchase like a house or car” than their male counterparts.

Bessie Hassan, money expert at finder.com.au, said that parents often felt “obligated” to help their children, as nearly one in five people surveyed said they provided support to their children because they struggled to “manage their money”.


For example, the research found that while 12 per cent of parents supported ‘kidults’ as they saved for a home loan deposit, another 11 per cent of parents said they were supporting their children because they were in debt.

“It’s human nature that parents want to step in if their child is struggling to repay debt or if they’re unable to complete a significant purchase such as a medical expense or a vehicle,” said Ms Hassan.

She warned, however, against parents giving regular cash handouts to their children, as this “could lead to poor financial behaviour”.

“A big part of parenting is helping your children become self-sufficient, and money matters should be no different,” she said.

“Young adults can get into the habit of living beyond their means because they think Mum and Dad will always be there to get them out of hot water.”


The percentage of adult children receiving financial support, however, has dropped by 12 per cent over the last 12 months.

Ms Hassan suggested: “[I]f you insist on giving money to your child, consider making it a loan with strict conditions on when and how it is to be paid back.”

“Try to resist the urge to step in and instead allow your children to learn basic money management skills such as saving, budgeting and investing.”

[Related: Younger Aussies struggling with debt]

Three-quarters of parents still pay for adult children

Latest News

The Federal Court has ordered Westpac to pay an agreed $1.3 billion penalty for breaching anti-money laundering and counter-terrorism financ...

The major bank has hired internally to fill the position of head of corporate finance, international, a newly created role overseeing the c...

The ASX-listed bank has reported strong third-party-driven loan book growth over the first few months of the new financial year. ...


Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.


LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.