Bank of Mum and Dad - Adults still turning to parents for financial help

Author
Newstalk ZB staff,
Publish Date
Mon, 27 Jul 2020, 10:34AM
(Photo / File)

Bank of Mum and Dad - Adults still turning to parents for financial help

Author
Newstalk ZB staff,
Publish Date
Mon, 27 Jul 2020, 10:34AM

The University of Copenhagen has conducted research, finding that young people up to the age of 39 still require financial help from parents.

The same can be said for kiwis, with figures in New Zealand from 2018 showing more than half of first home buyers turning to their parents for help.

Founder and Managing Partner of Auckland accounting firm Gilligan Sheppard Bruce Sheppard told Mike Hosking, parents are in a vulnerable position when dealing with their kids, and they are often emotionally influenced to give money even when their own financial circumstances are not ideal. 

Mr Sheppard says it is best to get some financial advice before handing out cash, to take the emotional aspect out of it. 

He adds a big part of the problem is that incomes have not risen along with house prices.

"[Housing is] unaffordable because incomes haven't risen in parallel with the growth in the economy."

FOUNDER AND MANAGING PARTNER OF AUCKLAND ACCOUNTING FIRM GILLIGAN SHEPPARD ON THE BANK OF MUM AND DAD PUTTING PARENTS AT RISK