The ‘Bank of Mum and Dad’ is expected to contribute around £30,000 towards a child’s biggest life milestones, new research from Yorkshire Building Society shows.
Analysis of the study found parents contribute an average of £1,700 towards driving lessons, £2,947 towards a first car, £8,029 towards university costs, £5,180 towards a wedding or civil partnership and £10,784 towards a house deposit.
Over three quarters (77%) of parents surveyed said they have saved for at least one life milestone, while 66% said they wish they could contribute even more financial help.
The findings highlight the increasingly important role parents are playing in helping younger generations navigate major life events and build financial security.
The research of 2,000 parents found that financial independence (55%), a stable career (54%) and the ability to save for major life events (41%) are among the biggest hopes parents have for their children.
By age 30, parents hope their children will have enough disposable income to enjoy life (58%), own their own home (51%), be debt-free (45%) and live independently away from immediate family (40%).
Beyond milestone moments, Yorkshire Building Society said parents are also contributing towards rent, emergency savings, childcare, lump-sum gifts and future inheritances, with the average planned inheritance or money intended to be left to children reaching almost £16,000.
However, the vast majority of parents (79%) are concerned about the impact of the current economic climate on their child’s financial future, while 89% worry their child will face more financial challenges than they did at the same age. More than half (58%) believe it is too difficult for their child to save enough to buy a home, while 51% think building long-term financial security is too difficult without family support.
Tina Hughes, director of savings at Yorkshire Building Society, said: “Every parent wants to help their child achieve the moments that matter most in life, whether that’s learning to drive, going to university, buying a first home or celebrating a wedding.
“Our research shows just how significant that support can be. For families who can afford it, the Bank of Mum and Dad is helping bridge the gap between aspiration and reality, providing financial support at key stages throughout life.
“But it’s important to remember that support doesn’t have to mean saving tens of thousands of pounds. Even small, regular contributions can build up over time and make a meaningful difference, helping children take their first steps towards achieving their goals with greater confidence.”
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