One in four say they have borrowed money from their parents for bills

One in four (25%) adults borrowing money from their parents for bills such as rent or insurance admit they don’t always tell their partner about the extra help, even though they share the bill, according to new polling data conducted by Compare the Market.

This proportion rises to a third (33%) among Gen Z and Millennial generations (25- to 34-year-olds), the majority (64%) of respondents said they had last borrowed money from their parents since moving out from the family home, with a minority (36%) saying they hadn’t done this since moving out.

One in ten (12%) 25- to 34-year-olds said they borrowed money from their parents monthly whilst employed. A further fifth (21%) of this age group said they borrow money from their parents every two to six months.

More than a quarter (29%) of respondents said they had lied to their parents about what they used the money for at least once, rising to nearly half (48%) among 21- to 24-year-olds and 41% among 25- to 34-year-olds.

Asked whether they had ever delayed repaying their parents,  even when they could afford to,  nearly half of all respondents said they had (46%), including six out of ten (59%) 25- to 34-year-olds and a similar proportion of 21- to 24-year-olds (62%).

Nearly a fifth (19%) of all respondents said they had lent money from their parents to friends, with this behaviour jumping to nearly a third (32%) among 25- to 34-year-olds. Borrowing from parents can come with strings attached. A quarter (26%) of respondents said they had to pay the money back over a fixed period, with nearly another quarter (24%) saying it came with expectations over how the money was used.

One in ten (13%) said their parents made them pay back interest on the money borrowed – albeit primarily at a rate lower than the market. This rose to one in five (21%) of 21- to 24-year-olds and 25- to 34-year-olds. One in six (16%) 25- to 34-year-olds said borrowing from parents has helped to positively influence their eligibility for a mortgage or other lending.

More than a quarter (28%) of 25- to 34-year-olds said they borrowed money from parents for food shops, followed by money to buy a car (16%), to help fund a holiday (14%) and to contribute towards a mortgage (13%). More than one in ten (13%) of this age group said they borrowed money to pay their energy bills.

More than half (57%) of respondents said a lower cost of living would help them to rely less on money borrowed from their parents, with nearly a quarter (25%) also citing lower fuel costs and nearly a fifth (19%) citing more job opportunities.

Abigail Foster, Personal Finance Expert at Compare the Market, said “Borrowing from parents might feel like a quick fix, but it’s important to build habits that support long-term independence. Start by getting clear on where your money is going, setting realistic budgets, and building a small emergency fund to help you start building a savings pot.

“If you need to lean on family support, try to treat it like any other financial commitment: be open about it, set repayment plans, and avoid it becoming a regular fallback. For parents, helping young people build confidence with money early on, whether that’s encouraging saving habits, talking openly about finances, or setting boundaries around lending, can make a big difference in the long run.”

Sajni Shah, Money Expert at Compare the Market, said “While it’s natural to lean on family from time to time, these findings suggest a lack of transparency and planning when it comes to shared finances – particularly among younger couples.  Open conversations about money can help avoid misunderstandings and set clear expectations, especially when it comes to repaying loans.  Couples may benefit from using tools like joint accounts for shared expenses and setting both shared and individual financial goals – whether that’s saving for a home, a big trip, or personal milestones. This can help build trust and reduce the need to keep financial information hidden.”

Gen Z and Millennials are borrowing money from their parents for:

Expense	All age groups	25- to 34-year olds
Food shopping	21%	28%
To buy a car	21%	16%
Mortgage	14%	13%
Holidays	13%	14%
Energy Bill	12%	13%
House items like furniture	12%	13%
Petrol	11%	13%
Nothing in particular, just general expenses	11%	11%
Meals out or nights out	9%	12%
Phone bill	9%	11%
Car insurance	8%	10%
Clothes	8%	13%
Council Tax	8%	10%
Water Bill	7%	11%
To start a business	6%	9%
To pay for a wedding	6%	7%
Home insurance	4%	6%
Subscriptions like Netflix or the gym	4%	7%