Under 30s can’t break away from parents
In the first in a series of reports by The Co-operative looking at the issues affecting the British population at various life stages a “lost generation” of 18-30 year olds has been identified who are struggling to become independent against the UK’s challenging economic backdrop.
Martyn Wates, deputy group chief executive at The Co-operative Group, said: “The findings of our study into 18 to 30 year olds living in Britain today offers a unique insight into their view of the world and their prospects for the future.
“It should not be forgotten that it is these young adults are ultimately going to shape the future of Britain for years to come so they need support and encouragement to thrive which in turn will only be positive for the future of the country.”
More than eight out of 10 (84%) of young adults in the UK admit to having received financial support from their parents since “coming of age”.
Young adults in the 18-30 age range have asked their parents for financial help for a range of things from food shopping costs (43%) to holidays (36%) to debt payments (16%) and house purchases (8%).
But it’s not just financial support from the “Bank of Mum and Dad” with a high proportion of young adults (80%) still relying heavily on their parents for help with basic tasks and decision making.
The most common areas for support including transportation (40%) chores such as cleaning and ironing (34%) and help with finding a job (27%).
The research highlights that money is an issue for young adults with nearly a third (31%) not feeling financially independent.
The report has identified the 18-30 “debt-eration” with nearly two thirds (60%) of 18-30 year olds admitting to having debt of some sort.
The findings of the study reveal that for this generation debt is the new normality with 77% of this age group simply not fazed by it.
Yet, despite parents and guardians helping their offspring repay debt nearly a third of young adults are hiding their debt from their parents amounting to an average burden of £3,579 of secret debt.
The main sources of debt for this age group are; student loans (63%), credit cards (31%), personal loans (23%), overdrafts (19%) and money borrowed from parents (18%).