Research has found that one in five parents has not yet accumulated any savings to assist their children once they reach adulthood.
A survey of 2,000 adults with children aged under 18 discovered that 23% feel unready for the expenses involved in supporting their offspring through the transition into adulthood.
Furthermore, 51% expressed concern that they would be unable to cover their children’s university fees or living expenses if higher education was pursued.
In contrast, 79% indicated they have already commenced saving, with intentions to contribute towards future expenditure such as purchasing property or funding significant life occasions including marriages.
At the same time, 46% reported anxiety that they might need to extend their working lives beyond planned retirement age to provide financial assistance to their children during early adulthood.
Kathleen Brooks, research director at investment platform XTB, which commissioned the study, observed that supporting children into adulthood is becoming an increasingly extended financial undertaking for parents.
She noted that many parents understand the value of commencing savings early and building funds incrementally over time to reduce pressure.
Brooks added that while upcoming expenses may appear overwhelming, even modest regular contributions accumulated over extended periods can prove substantial and help families feel better equipped financially for approaching milestones.
According to analysis by XTB using Bank of England inflation projections, a three-year university degree in the United Kingdom could surpass £91,000 by 2040, with annual costs rising from approximately £23,000 to beyond £30,000.
For students studying in the capital, the total expense could reach nearly £119,000, with yearly amounts climbing from around £30,000 to close to £40,000.
The research also identified factors contributing to parental feelings of being unprepared, including the challenge of saving due to ongoing living expenses cited by 64% of respondents, the perception that future costs are prohibitively high mentioned by 40%, and the responsibility of planning for multiple children highlighted by 39%.
Across the parent group surveyed, 42% save consistently, 33% do so intermittently, and 5% have made a single contribution.
Meanwhile, 49% have accumulated under £5,000 towards their child’s transition to adulthood.
The typical amount saved for a child heading to higher education stands at £5,508.
Parents indicated that accommodation costs represented their most common target for contributions at 47%, followed by tuition fees at 41% and general living expenses at 33%.
A substantial 82% agreed that supporting children into adulthood has become a more prolonged financial commitment for the current generation compared with previous ones, with parents now anticipating their children leaving home at an average age of 26.
The research conducted through OnePoll found that the predominant methods parents use for saving for their children include children’s savings accounts favoured by 39%, Junior Cash ISAs selected by 24%, and standard savings accounts used by 22%.
Those surveyed indicated that saving would become more straightforward if they possessed clearer knowledge of appropriate savings targets at 22%, had greater understanding of investment opportunities at 18%, and were more aware of available savings products at 18%.
Brooks from XTB further commented that while many parents quite reasonably concentrate on accumulating savings, consideration should also be given to how those funds can work harder over time.
She explained that the earlier families begin their financial planning, the greater their potential opportunity to establish a financial base capable of supporting their children through significant life events, whether those involve university, purchasing a first property, or other meaningful steps into independent living.
Brooks concluded that establishing a financial framework at an early stage can offer increased flexibility when those substantial life milestones eventually materialise.