Bank of mum and dad still going strong – Paragon Bank

Forty-seven per cent of parents have given their adult children a financial lump sum, new research from Paragon Bank has indicated.

The findings also revealed that 37% of parents financially support their children on a regular basis.

Paragon’s research, based on a study of over 1,500 adults, has highlighted the scale and the motives of the “intergenerational generosity” in the UK, the bank stated. It also found that grandparents are generous with their grandchildren, with 22% making a lump sum gift and a similar percentage supporting them on an ongoing basis.

The main reasons for regular financial support include general financial help (59%), university fees (15%) or motoring help (11%), while financial support is also given for school fees (10%), holidays (9%) and mortgage support (9%).

Paragon found that the main reasons for lump sum payments are general financial support (35%), a house deposit (26%), a large one-off purchase, such as a car or wedding (13%), and house renovations or extensions (13%).

“Our research shows how parents and grandparents are helping their family members financially, for various purposes,” Paragon savings director, Derek Sprawling, said. “We recognise that many families have faced difficulties during the cost of living crisis and the generosity and parents and grandparents have been supporting their loved ones in these tough times.”

He added: "We also want to remind parents and grandparents that they need to look after their own financial wellbeing and make the most of their cash savings by getting the best returns. That means being focused on their savings and searching for rates at the higher end of the market, rather than just leaving them with an incumbent.”

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