Oct 29 2007
Parents could find themselves facing a "bleak financial future" as their children become adults, due to a massive increase in the cost of becoming an adult today, according to new research.
The first annual Coming of Wage report from the Children's Mutual indicates that there has been a massive societal shift in the cost of modern adulthood and that parents are bearing the brunt of this change.
With record numbers of students going to university and house prices on a steep rise, many UK teenagers cannot become financially independent adults on their own.
Rent and utility bills are among the greatest shocks for new graduates when they get their first full-time job, the research showed.
The report also added that former students are reluctant "…to believe that the end of university meant that you were now 'grown up' and should therefore be leaving the parental nest".
David White, chief executive of the Children's Mutual, said: "The parents who have the biggest chance of making a difference are those with child trust fund children. They have been given the catalyst to help them save."
The Tax Incentivised Savings Association recently welcomed the government announcement that further measures would be introduced to promote child trust funds.
