New research from investment adviser Stockspot has revealed that almost three-quarters (74 per cent) of parents fear their children will live at home well into their adulthood, and 85 per cent are worried their children will not be able to afford their own home.
The report entitled The Future Affordability: Finding Freedom from the Bank of Mum and Dad surveyed parents on how they view their children’s future financial freedom, and looked at concerns regarding young people’s finances and the cost of housing.
It found that 94 per cent of parents are worried about housing affordability and how it will affect the financial future of their children.
When it comes to assisting their children, 71 per cent of Australian families said they could only afford to lend $30,000 or less towards their children’s first home, and the majority of parents (81 per cent) said they would be placed under financial pressure if they were to support their children into their adult life.
Notably, unemployed parents are twice as likely to want to provide their children with financial help, but half as likely to be able to. Meanwhile, families with incomes over $100,000 are two-and-a-half times more likely to be able to offer assistance, but are less willing.
Further, the report showed that opinions are divided in regards to who is responsible for ensuring young people are financially equipped for their future.
Almost one in three (31 per cent) believe it is the government’s role due to rising prices, making it difficult for children to gain financial independence. Others insist that it is up to the children themselves (26 per cent), or that parents are responsible (23 per cent).
Commenting on the findings, Stockspot CEO and founder Chris Brycki said: “What we found is families from across Australia of all ages and incomes are deeply concerned about the future financial freedom of their children. Parents are bombarded everyday with news of impossible to afford houses and the rising cost of living.”
“Younger parents, those aged 18 to 34, are the most worried. They are already victim to the housing crisis, low wage growth and now they’re seeing the cost of education go up on their children.
“Parents are squeezed in every direction and they’re not sure if they’ll have the funds to help their adult children. I believe future generations won’t be able to rely so strongly on the bank of mum and dad.”