Mum and Dad are keeping their cash

The global financial crisis is impacting heavily on the financial support baby boomers are giving to their adult children. Just six per cent of parents now rate providing financial assistance to their adult offspring as a top priority according to St George Bank research.

The study shows that while Generation Y expects parents to help pay for weddings, house deposits and education fees, concerns over retirement and debt have taken priority for most mums and dads.

Almost half of those parents with adult children said they were focussed on saving, either for retirement (25 per cent) or other future expenses (24 per cent). Another 41 per cent favoured paying off debt, either their credit card (24 per cent) or mortgage (17 per cent), the survey showed.

“Circumstances have changed for many and it's understandable that parents are now having to focus on their own needs and financial health to manage their way through the tough economic climate, particularly as we don't know when it will end,” St George's general manager of retail bank distribution Andrew Moore said.

“As a result, when it comes to paying for things like weddings, first home deposits, overseas travel and childcare, many Gen Ys must now stand on their own two feet.”

Source: The Age