
Parents with children below the age of 18 have expressed widespread concern about the country’s economic outlook and its impact on family finances according to new research by Confused.com Life Insurance.
The findings shed light on parents’ financial priorities, worries, and hopes for their children’s futures with an overwhelming 78% expressing concern about the UK’s economic future over the next 5-10 years, with a third of parents (32%) being ‘very concerned’.
Despite this widespread concern, more than half of parents (52%) have an optimistic view of their children’s financial prospects as adults. Though one in five (21%) are pessimistic. This points to a mixed but overall hopeful outlook when considering the long-term futures of their children.
The research uncovered parents’ top financial fear for their children: that they won’t be able to afford a home. Over a quarter (26%) of parents said housing affordability is their top financial fear for their children. In 2025, the average UK house price is forecast to rise a further 2.5% by the end of the year.
Other top concerns expressed by parents include rising living costs. 16% of parents listed this as the area they are most concerned about, and long-term financial security (12%).
Only 4% of parents are primarily concerned that their children won’t have enough financial support or inheritance in the event of losing their parents, however. One step a majority of parents have taken to ease financial pressures on their children is taking out life insurance. Three in five parents (60%) said they had a life insurance policy in place.
Despite challenges, 3 in 5 parents (59%) say they have taken steps to financially secure their children’s futures. An additional 32% have not yet, but plan to do so.
Significant barriers remain, however. Of parents who have not yet taken steps to prepare for their children’s financial futures, 38% cite a lack of disposable income. 19% are unsure where to begin.
Key priorities for financial planning include general savings (52% of parents list this as a priority), education savings (48%), and emergency savings (44%).
In 2024, 60% of parents felt the impact of rising costs most in their grocery shopping. Utility bills (56%) also squeezed a majority of family budgets. These were the two areas of spending where parents felt price increases the most.
Transport costs also hit household spending. Almost 3 in 10 parents (28%) noticed rises in this area in 2024.
Despite a majority of parents noticing an increase in the costs of groceries and household essentials as well as utility bills, plans to cut spending in these areas in 2025 are more restrained. Just a third of parents (33%) plan to cut spending on groceries and household essentials this year.
More than one in five parents (22%) have no plans to cut down on areas of their spending despite rising costs. After years of rising prices, this could be indicative of families with little room left to make spending changes.
While managing rising costs, families are also struggling to save for the long-term. 59% of parents have taken steps to save for their children’s futures through savings, investments, or life insurance. But almost two fifths (38%) cited a lack of disposable income as a barrier to further financial planning.
The findings underscore a dual pressure for families, who are managing immediate financial strain while also trying to plan for their children’s futures. A third of parents (32%) believe their children have worse financial opportunities than they had at the same age.
Commenting on the findings, Tom Vaughan, Life Insurance Expert at Confused.com said “Years of rising costs have parents understandably worried about their ability to put money aside for their children. A majority of parents continue to be concerned about the economy going into 2025. And while around half of parents do still feel optimistic about their children’s financial futures, one in five have a more dim view.”
When asked for their biggest financial fear regarding their children’s future:
They’ll struggle to afford their own home |
26% |
They won’t be able to keep up with the rising cost of living |
16% |
They’ll struggle to build long-term financial security e.g. savings, pensions |
12% |
Private rented accommodation will be unaffordable |
10% |
Wider economic circumstances will limit their opportunities |
9% |
They’ll rely on parental support indefinitely |
5% |
They won’t have enough financial support or inheritance to secure their future after I’m gone |
4% |
N/A – I have no fears regarding their financial future |
11% |
Not sure/none in particular |
7% |
The areas parents identified as noticing cost increases in 2024
Groceries and household essentials |
60% |
Utility bills |
56% |
Transport costs (fuel, public transport) |
28% |
Family holidays or outings |
25% |
Home upgrades/renovations |
18% |
Savings and investments |
17% |
Childcare |
16% |
Children’s extracurricular activities |
15% |