The £2.5k cost of helping your kids leave the family home
The majority of parents (85%) contribute financially towards setting up their offspring’s new start when they leave home, said Nationwide.
On average children fly the family nest just before they turn 20, with almost half (47%) leaving the family home by the time they are 18. But one in 12 (8%) stay put in the parental nest past their 25th birthday.
But why do parents need fork out so much to fund the move?
University cost challenge
The cost of equipping a child for university was the highest initial outlay at £1,114, including an average £144 spent on computers, £109 on transport , £107 on books and stationery, £106 on mobile phones and £100 on kitchen equipment and bedding.
Parents spent an average of £631 on helping their child set up a first rented flat or house, including £135 towards the rent itself, £83 on home furnishings, £61 on kitchen equipment, £58 on food, £47 on bedding and £27 on bathroom essentials.
Buying a home
For those parents helping their child buy their first home, the average bill totalled £825, including £281 towards the initial deposit.
They spent a further £80 on home furnishings, £60 on kitchen equipment, £58 towards solicitor’s fees and £57 on decorating and renovations.
For some parents, the costs could mount up even further as their children will have done all three – been to university, set up a first rental and bought their own home – costing a combined £2,570.
More than half of parents (56%) funded this spending from savings and a third (36%) covered the costs from their normal income. However, some parents put themselves into debt to help their kids, with 6% using a credit card, 5% an overdraft and 3% a personal loan.
Nationwide’s head of savings, Tom Riley, said: “Funding those first steps to independent living requires saving, but the earlier you start, the easier it could be to achieve an empty nest and a new lease of life for mum and dad!”