More than one in 10 young adults expect their parents to help them financially
Over a third of millennials and Gen Z adults still rely on the bank of mum and dad to pay certain bills for them - receiving over £550 a year from their parents
by Martin Winter · The MirrorPhone bills (32%), utility bills (30%), and TV streaming services (35%), are some of the top subscriptions that Gen Z and millennial adults – are relying on their parents to pay for, a study has found.
A third of young adults, aged 18 to 35, are still helped out by the bank of mum and dad to cover regular payments, such as insurance policies (22%), and housing costs (32%).
Sports subscriptions, music streaming services, and delivery services, are among other subscriptions they do not cover themselves, according to the survey of 1,000 adults in this age group. And it emerged that parents who do help out their offspring typically contribute £46.10 a month – or over £550 a year.
However, it seems the help is much needed, as those polled estimate their bills have increased by £154.49, on average, in the last 12 months alone. And more than one in 10 (12%) expect their parents to help them financially – as 45% argue that money went further in their parents' generation that it does now.
The research, from Virgin Media O2, comes amid warnings that smartphone overpayments – when network providers don’t fully or automatically reduce bills once the cost of the phone has been paid – exceed more than £530 million a year.
Rob Orr, chief operations officer at Virgin Media O2, which commissioned the study to warn parents they could be overpaying on their children’s phone bills, said: “In the current economic climate, people can ill afford to waste money paying for phones they already own.
“Whether you’re getting support from the bank of mum and dad, or helping your kids, we’re urging everyone to check you’re not being charged for a phone that’s already been paid off.
“Many parents across the UK will be paying for multiple phone contracts, so it’s crucial they avoid the pernicious practice of smartphone overpayments.”
The study also found 26% of youngsters feel guilty about taking money from their parents, while 38% worry they might cut back their financial support in the next year.
And over half of those polled (55%) believe it is harder to get on the property ladder now than it was 10 years ago. However, millennials and Gen Z adults who don’t receive financial support, are 40% more likely to view today's mortgages as expensive, compared to those on the parental payroll.
And they are also 38% more likely to describe inflation as too high, compared to those who enjoy the extra budgetary backing.
It goes both ways, though – as 37%, of 18-35-year-olds, pay for some of their parents’ bills or subscriptions, according to the research, carried out via OnePoll.
TV streaming services such as Netflix (37%), as well as utility and phone bills (both 33%), are among the most common things the younger generations cover for their parents.
The main reasons for this include being able to help, and feeling like they should (38%), along with wanting to show they love them, and wanting to give back (both 37%), after their parents supported them growing up.
Rob Orr, from Virgin Media O2, which automatically reduces bills once the contract ends, for phones bought directly from them, added: “With the cost-of-living crisis continuing to bite, it’s more important than ever to make sure you’re only being charged for what you owe.”
Following the findings, the brand has created an online mobile overpayment calculator.
TOP 10 BILLS 18-35 YEAR-OLDS HAVE PAID FOR BY THEIR PARENTS:
- TV streaming services
- Housing costs
- Phone bills
- Utility bills
- Insurance policies
- Car insurance
- Delivery services
- Clothes
- Sports subscriptions
- Music streaming services