June 12, 2009 / 5:43 AM / in 9 years

Generation Y advised to wean selves off parents' cash

CANBERRA (Reuters Life!) - Generation Y-ers expecting parents to foot their bills could be in for a rude awakening since the economic crisis hit, according to a poll.

A survey for Australia’s St George Bank found almost two-thirds of Generation Y-ers -- people born from the mid 1980s to early 1990s -- are expecting their parents to help them out with their rent, their wedding and when buying a home.

However, the poll found many parents were no longer in a position to fund their children, with 70 percent of “baby boomers,” or people in their 50s and 60s, suffering financially as a result of the global financial crisis.

“Clearly, most parents want to help their grown-up children but circumstances have changed for many and it’s understandable that parents are now having to focus on their own needs and financial health,” said bank spokesman Andrew Moore.

“As a result when it comes to paying for things like weddings, first home deposits, overseas travel and childcare, many Gen Ys must now stand on their own two feet ... the fall in parental financial support will no doubt be a significant blow to Gen Y who have grown accustomed to receiving parental help.”

The survey of 1,000 Australians, conducted by Galaxy Research, found a growing disconnect between the expectations of Generation Y-ers, many of whom had a pampered youth, and what their parents can provide.

The poll found that 65 percent of Generation Y-ers had no knowledge of their parents’ financial situation, yet 44 percent expected their parents to pay for all or part of their wedding, 40 percent expected help buying a house and 34 percent expected financial support for their education.

These expectations left more than 50 percent of parents feeling guilty when their children asked for help or support.

Four in five parents of adult children wished their children planned for their future better and spent less on non-essential items, saved more and become more financially independent.

Moore said the survey found that many Generation Y-ers just did not know how to budget or save.

“One in four Gen Ys say they have never had to budget and/or save, and a further 35 percent have only done so for a short period when saving for a particular item or holiday,” he said.

“With the increasing pressure their parents are under with the GFC (global financial crisis), I strongly recommend that Gen Y take a more active role in managing their finances as they will be less able to turn to their parent for help.”

Editing by Miral Fahmy

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