Young drivers relying on Bank of Mum and Dad

Almost half of UK parents plan to help purchase their child’s first car, new research claims.

According to the study by online investment service Wealthify, 46.9% will contribute and the average they hope to spend amounts to £1,911.75 per child.

Nearly a third of parents (29.3%) plan to contribute between £1,001 to £2,000, nearly as many (28.4%) will fork out £501 to £1,000, while almost one in 14 (7.3%) parents say they plan to spend more than £5,000 PER CHILD on a first motor.

As we face the greatest fall in living standards since the 1970s, the cost-of-living crisis is increasingly worrying, especially for those with children relying on them.

This new research shows that parents are still committed to saving for their children’s first ‘big’ purchases.

More than 1 in 10 (11.2%) of London parents plan to contribute more than £5,000 – the highest percentage compared to the rest of the country.

“As the cost of living rises across the country, it’s no surprise that parents are finding it difficult to save for their children,” said Simon Holland, Chief Product Officer at Wealthify.

“However, as time goes on, big purchases like a car or home will become much less attainable for our kids – so, it’s important we help to give them a financial head start if we are able to.”

Average amount spent by parents per region:  

London	£2,454.74
Wales	£2,281.82
Northern Ireland	£2,012.50
North West	£1,922.92
South East	£1,864.96
North East	£1,860.47
Eastern	£1,847.46
West Midlands	£1,830.88
Yorkshire & The Humber	£1,800.72
Scotland	£1,785.71
South-West	£1,704.86
East Midlands	£1,573.94