Most Asian parents support children over 18, study shows

Ivy Jean Vibar, ABS-CBN News

Posted at Sep 09 2017 02:47 PM | Updated as of Sep 09 2017 06:36 PM

MANILA - Filipinos should feel a sense of camaraderie with their fellow Asians after a new study showed that many parents in Asia have not cut the so-called "financial umbilical cord" and still support their children over age 18.

This highlights parents' ongoing commitment to their children, and shows how younger generations around the globe face financial pressures, banking giant HSBC's The Power of Protection study showed.

The study, which surveyed parents in 13 countries, said that about 79 percent of parents in the United Arab Emirates still support their children, followed by Indonesia (77 percent), Mexico (59 percent), Malaysia (57 percent), and China (55 percent).

Parents in France (38 percent), the United Kingdom (30 percent), and the United States (26 percent) trailed behind their Asian counterparts.

Some 48 percent, or nearly half of those supporting their adult children, said they have been doing so for over 12 years, with their children already over 30.

The study also suggested that most parents still do so even while they believe that they should have long started to stand on their own. 

They also would choose to pay for their children's needs before spending for themselves, the study found.

However, most parents still reported that they felt good about helping their family, with 61 percent feeling appreciated for their help, and about 70 percent feeling they are good providers.

The form of support that parents give their children include education, utility bills, groceries, home repairs, medical and dental care, and rent or accommodation. Some also pay for their kids' holidays.

Considering these, it is important to plan for finances "intergenerationally," HSBC said.

To overcome financial dependency, "intergenerational planning" is key, HSBC said.

“With parents supporting their children for longer, it is important to have a financial plan that considers competing priorities and future financial security. Thinking about what is important in your life today, what you want to protect for the future, and seeking
professional advice, are good first steps to putting a plan in place," said Bryce Johns, Group Head of Insurance at HSBC.