DATA STORY | 55% of Indian parents financially support adult children, says report
Around 55 percent of Indian parents still provide financial support to their adult children, according to an HSBC report.
Providing the monetary assistance to adult children comes with certain challenges.
“Parents are spending an average 37 percent of their disposable income on supporting their grown-up children and 56 percent are spending less on themselves in order to have more for their families,” the report found.
UAE and Indonesia were highest on the list, with over 70 percent of parents in each country giving monetary support to their adult children.
Parents in Asian and Middle Eastern countries seem most inclined to support their grown children. The US (26 percent) and the UK (30 percent) saw the lowest numbers of parents giving financial support to their children.
The study, titled “Facing the future”, took insights from 13,122 people in 13 countries and territories.
Globally, around 48 percent of parents have been supporting their grown children for over 12 years, with the children now above 30.
59 percent of the parents help fund their children’s education, while 49 percent help with bills. Parents also tend to help with expenses such as rent, medical bills, and vacations.
61 percent of the parents interviewed felt appreciated for the support, and 70 percent think they are providers for their families.
But most parents (61 percent) believe that their children should eventually be able to support themselves.
In the study, HSBC also suggested four ways for a parent to prepare the family for the future:
– Identify your priorities
– Assess your finances
– Plan for the whole family
– Talk about the future