Parents expect to provide £30k towards children’s life milestones

The modern ‘Bank of Mum and Dad’ is expected to contribute around £30,000 (£30,209) towards a child’s biggest life milestones and two-thirds (66%) wish they could contribute even more financial help, according to new Yorkshire Building Society research.

Analysis of the study found that parents who help fund key moments throughout their child’s life save or contribute an average of £1,700 towards driving lessons, £2,947 towards a first car, £8,029 towards university costs, £10,784 towards a house deposit and £5,180 towards a wedding or civil partnership.

The findings highlight the increasingly important role parents are playing in helping younger generations navigate major life events and build financial security in a challenging economic environment.

The findings reflect wider challenges facing aspiring homeowners. Recent analysis found that 31% of first-time buyers receive help from friends or family towards their deposit, while the average first-time buyer deposit in England now exceeds £78,000. Against this backdrop, parental support is increasingly helping younger generations bridge the gap between saving aspirations and homeownership.

The research of 2,000 parents found that financial independence (55%), a stable career (54%) and the ability to save for major life events (41%) are among the biggest hopes parents have for their children.

By age 30, parents hope their children will have enough disposable income to enjoy life (58%), own their own home (51%), be debt-free (45%) and live independently away from immediate family (40%).

To help achieve those ambitions, many parents are saving and contributing towards milestones throughout their child’s life. Over three quarters (77%) of parents surveyed said they have saved for at least one life milestone. The most common savings goals include helping towards a deposit for a house (22%), building an inheritance to leave their children (21%), driving lessons and first car (both 18%), rainy day/emergency fund (18%) and a contribution towards a wedding or civil partnership (17%).

Beyond milestone moments, parental support is often much broader. Parents are also contributing towards rent, emergency savings, childcare, lump-sum gifts and future inheritances, with the average planned inheritance or money intended to be left to children reaching almost £16,000 (£15,939).

The growing importance of family support reflects concerns about the challenges facing younger generations today. Almost four in five (79%) parents are concerned about the impact of the current economic climate on their child’s financial future, while nine in ten (89%) worry their child will face more financial challenges than they did at the same age.

More than half (58%) believe it is too difficult for their child to save enough to buy a home, while 51% think building long-term financial security is too difficult without family support.

The research also suggests that support extends a decade into adulthood, with parents expecting their children to become financially independent at an average age of 28.9 years old, however, 4% thought they would still be financially supporting their children when they are over 50.

Tina Hughes, Director of Savings at Yorkshire Building Society, said “Every parent wants to help their child achieve the moments that matter most in life, whether that’s learning to drive, going to university, buying a first home or celebrating a wedding.

“Our research shows just how significant that support can be. For families who can afford it, the Bank of Mum and Dad is helping bridge the gap between aspiration and reality, providing financial support at key stages throughout life.

“But it’s important to remember that support doesn’t have to mean saving tens of thousands of pounds. Even small, regular contributions can build up over time and make a meaningful difference, helping children take their first steps towards achieving their goals with greater confidence.

“While parents continue to aspire for their children to become financially independent, many recognise the challenges younger generations face. That’s why we’re committed to helping people save towards life’s important milestones and supporting them through every stage of their financial journey.”