A FIFTH of parents haven’t put any money aside to support their child once they become an adult, research has revealed.
A poll of 2,000 parents with kids under 18 found 23 per cent feel unprepared for the cost of supporting their children into adulthood.
In addition, 51 per cent are worried they won’t be able to contribute towards their child’s university education or living costs if they were to attend.
Conversely, 79 per cent have already started putting money aside, with plans to help fund future costs such as getting on the property ladder or supporting key life events like weddings.
Meanwhile, 46 per cent are concerned they’ll be forced to retire later than planned to have to support their kids through their early adult years.
Kathleen Brooks, research director at investment platform XTB, which commissioned the research, said: “Supporting children into adulthood is becoming an increasingly long-term financial commitment.
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“And many parents are recognising the importance of starting early and building savings gradually over time to ease that pressure.
“While future costs can feel daunting, even small, regular contributions made over a long period can make a meaningful difference and help families feel more financially prepared for the milestones ahead.”
Based on the Bank of England’s inflation targets, analysts from the platform believe the total cost of a three-year university degree in the UK could exceed £91,000 by 2040, increasing from around £23,000 a year to more than £30,000 annually.
For those living and studying in London, the total cost could approach £119,000, with yearly costs rising from around £30,000 to nearly £40,000.
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The study of parents also identified the reasons they feel underprepared – including everyday living costs making it difficult to save (64 per cent), future costs feeling too high (40 per cent) and having more than one child to plan for (39 per cent).
In total, 42 per cent regularly put money aside, 33 per cent do so occasionally and five per cent have put in a one-off amount.
While 49 per cent have raised less than £5,000 for their child reaching adulthood.
On average, parents have £5,508 saved for their child heading to university.
With mums and dads wanting to contribute towards accommodation costs (47 per cent), tuition fees (41 per cent) and everyday living expenses (33 per cent) the most.
And 82 per cent agreed supporting children into adulthood has become more of a longer-term financial commitment for the current generation than previous, with parents now expecting their children to move out at an average age of 26.
The research carried out through OnePoll found the most common method to put money aside for their youngsters is via a children’s savings account (39 per cent), a Junior Cash ISA (24 per cent) and a general savings account (22 per cent).
Respondents said saving would be easier if they knew how much to save (22 per cent), understood how to invest (18 per cent) and had a better understanding of the different savings options available (18 per cent).
Kathleen Brooks, from XTB, added: “Many parents are understandably focused on setting money aside, but it’s also important to think about how those savings are working overtime.
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“The earlier families start planning, the more opportunity they may have to build a financial foundation that can support their children through major life moments, whether that’s university, buying a first home or taking other important next steps into adulthood.
“Creating a financial plan early can provide greater flexibility when those major life milestones eventually arrive.”