Parents looking forward to financial freedom after their children graduate could be in for a nasty shock, according to new research from engage Mutual Assurance.

Almost half of parents with kids over the age of 25 are helping their children to cover basic living costs. 46 percent of parents with children over 25 living away from home and 42 percent with over 25s living at home have bankrolled their grown up kids in the last six months.

In order to reveal the shifts in financial pressures facing each generation of the modern British family, engage Mutual Assurance asked a representative GB sample of over 2,200 people which types of financial commitments led them to financially support other family members.

The results highlight the emergence of a dependent generation of over 25s who are BOMADs or 'Banking on Mum and Dad' to cover a range of living costs, from day-to-day expenses, such as servicing debts and childcare, through to achieving key milestones in life e.g. first home purchase.

• During the last six months, almost a quarter (24%) of parents with children over 25 helped finance the running costs of their grown up child's home, financing deposits, mortgages or home improvements
• Many older children are starting families of their own and more than one in ten (11%) look to their parents to help foot the bill for childcare
• One in twenty (5%) parents of over 25s is still funding their child's further education
• 27 percent of parents with children over the age of 25 live with them in the family home
• Parents in London are most likely to be supporting over 25s with 47 percent still shelling out for grown up children

“With recent reports showing that parents are paying an average of £18,0002 to help their children buy their first home, these results reveal a huge shift in responsibilities across the generations.

In modern Britain, grown up children are not only turning to parents for one off handouts, but support for everyday expenses well into adulthood. This news should send clear messages to parents of younger children about the importance of saving little and often in the early years, to spread the impact on the family budget and to ensure that their child's needs don't affect their future independence.”

1 '3GB' is the engage Three Generation Britain research index. Research was conducted by YouGov across a GB representative of 2,200 adults (including 731 parents with children over the age of 25, and 1,269 people with living parents) in July 2006. The research explores the financial relationships of care between the generations and investigates shifts in traditional financial provision.

2 The Daily Telegraph, 3rd August 2006

1. If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : engagemutual.com> engage Mutual Assurance - meeting the changing needs of today's modern families

2. engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it's wholly-owned subsidiary engage Mutual Funds Limited (EMFL).

3. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores and NAAFI Financial.

4. The organisation is title sponsor of the engage Super League - which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls, Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalans Dragons.

5. engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk.

6. engage Mutual Assurance is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.

7. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.

8. Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA). 9. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234