More than three million 21 to 35-year-olds still at home and are successfully putting savings aside to achieve their goals, global information services company Experian has found.
Overall more than a quarter (26%) of millennials, or 3.6 million, live with their parents. The vast majority (84%) take advantage by regularly saving, putting away £205 a month on average.
Popular savings aims for this generation included buying a home (34%), clearing debt (19%), going travelling (13%) and owning a car (5%).
James Jones, head of consumer affairs at Experian, said: “The Bank of Mum and Dad is a financial institution that is becoming increasingly more important, especially when it comes to purchasing a property.
“However, our research shows that this dependence on parents by young adults goes beyond just big one-off expenses and stretches to everyday essentials.
“This has implications for both the youngsters’ and the parents’ financial futures, particularly if the parents’ finances become squeezed.
“Whilst receiving help from parents is perhaps necessary for many, I urge young people to also be conscious of building a positive financial profile. For example, remaining on track for repayments such as credit cards, household bills and mobile phone contracts.”
Some 7.6 million millennials (55%) admitted to seeking financial support from their parents in the last two years.
The Bank of Mum and Dad is called upon to pay for everyday essentials like groceries (18%), more so than larger purchases such as house deposits (13%) and honeymoons or weddings (9%).
Of those millennials that don’t live at home, in the past two years nearly one in 10 (9%) have relied on their parents to pay for their rent or monthly mortgage repayment, and 7% for a household bill.
One sixth (15%) of 31 to 35-year-olds have been on a holiday funded by their parents in the past two years and 12% have had their weekly or monthly food shop bought for them.
One in 10 have been taken on a ‘shopping spree’ and 14% have had their parents buy them a car or pay for another motoring expense (such as insurance, repairs or MOT/service).
It’s most common for 21 to 25 year-olds to receive financial support from their parents. About 30% of the youngest millennials have sought support from their parents to pay for their groceries.
And for those who live independently, 13% for their rent or mortgage repayment and 9% for a household bill.
Some 22% of the youngest millennials have had a holiday paid for by their parents and an additional 12% received money from their parents while they were away.
To support young people seeking financial independence from their parents, Experian has developed a new tool for millennials to help them reach their personal savings goals.
Users can set realistic saving amounts – breaking them down to monthly, weekly and daily goals – and the tool calculates the time it will take to reach their target.
It also includes a wealth of information and tips for effective money management, and has a swift calendar feature that syncs with a calendar of choice, enabling users to set monthly reminders to achieve their goals.