- A fifth of adult receive significant amounts from parents when they turn 18
- Northern Ireland has the lowest age of financial independence in the country
Adult children who receive a significant amount of money from their parents become financially independent up to a year and a half later than others, research claims.
A fifth of adults receive a lump sum payment from their parents when they turn eighteen, according to Wealthify, and are given £15,314 on average.
The study suggests that young adults that are given a significant amount of cash by their parents tend to have worse everyday financial habits than those who don’t.
On average these adults are financially beholden to their parents until the age of 22 years and three months, compared with just 20 years and nine months for those who don’t receive a lump sum.
Months ahead: Northern Ireland has the youngest age of financial independence
The age people reach financial independence also varies across the country.
Despite this, Northern Ireland has the lowest age of financial independence in the UK, at 19 years and ten months.
Yorkshire & Humberside and the West Midlands jointly hold the second lowest age, at 20 years and five months, while in the North West adults become financially independent at 20 years and six months on average.
In comparison, The South East has the highest age of financial independence at 21 years and eight month.
This is closely followed by 21 years and seven months in London, 21 years and five months in the East of England and 21 years and four months in the South West.
On the whole, the age at which young adults reach financial independence is on the rise, with the age at which young people get the first jobs having reached 19 on average, compared with between 16 and 18 over the past 20 years.
Compounding this, the number of young adults entering higher education has reached 35.8 per cent as of 2023, compared with just 24.7 per cent in 2006, though this has dropped from its peak of 38.2 per cent in 2021.
Inevitably, this pushes up the age that adults become financially independent from their parents and enter full-time employment.
Andy Russell, Wealthify’s chief executive, said: ‘Unlike their parents, young people today delay milestones like having their first child, buying their first home, or getting married much later in life due to the need to build up their finances.
In 2024, only 39 per cent of 25 to 34 year-olds own their own homes, compared with 59 per cent in 2000. Despite this, home ownership has still reached its peak since 2010.
Russell added: ‘Financial independence can feel a faraway dream for those facing low starting salaries and high living costs. And while parents help out where they can, it’s important that young people have their own security net to fall back on.
‘This is where an emergency savings pot comes in. Having money set aside in case life happens and things go wrong – especially the unexpected things, like your car breaking down, facing a sudden redundancy at work, or becoming unwell for a long period of time – is key to financial independence.
‘That way, you can still work towards your long-term financial goals without receiving a hit to your finances that knocks you off-kilter.
‘Usually, the rule of thumb is to have three to six months’ worth of outgoings behind you, and it’s generally advised to keep your emergency savings in a savings account that is out-of-sight but still easy to access.’
