University costs have replaced weddings as the big expense parents are most likely to face for their adult children, a report has found.
Two in five (40%) of parents said they had helped their grown-up child with university costs, while just one in five (21%) has contributed towards a wedding, according to the research by financial services provider Standard Life.
But for the grandparents’ generation the situation was reversed, with two in five (41%) of grandparents saying they had helped with their child’s wedding costs and one in four (25%) said they had paid towards their child’s education.
The report said that social changes relating to marriage, higher numbers of people going to university and the increased costs of paying for university are all likely to have contributed to the shift.
Nearly one fifth (19%) of parents said they had helped to pay off their child’s credit card or personal loan debt, showing a smaller proportion than nearly one third (28%) of grandparents who said they had helped to cover their own child’s credit card or loan repayments.
Meanwhile, one in seven (14%) grandparents said they were also helping put money towards their grandchild’s education. One in six (15%) grandparents said they had helped to fund their grandchild’s first car.
The Family Financial Tree report, which interviewed more than 4,000 people to see how money flows up and down the generations, also raised concerns of a “conversation gap” about finances which could be holding people back from planning their future.
It found that while almost three-fifths (59%) of grandparents have written a will to benefit their children, less than half (45%) of grandparents have discussed inheritance with members of their family.
One fifth (22%) of families surveyed only discuss money when a problem occurs or an important decision needs to be made.
A similar proportion (18%) said that they only discuss family finances with their partner and not with anyone else within their wider family.
Julie Hutchison, Standard Life family financial expert, said: “Despite so many people being on the family payroll, there often seems to be a barrier when it comes to having certain conversations about money.
“But if some of the trickier discussions do take place, around such things as inheritance or retirement, they can help to remove uncertainty and make it much easier for everyone in the family to plan ahead and make the most of their money.”