Passing money to your children when they need it is the most natural thing in the world.

School trips, clothes, university fees you always want your child to have the best. But what about after they turn 21?

Moneywise magazine recently wrote an article titled “Adult kids cost parents £2,103 a year” based on a study by LV= that found you guys are regularly helping your adult children with basic living expenses.

It’s not only the regular expenses though. The study found that parents are also spending nearly £10,000 on average on big ticket items for their children. I guess for most of you this sounds very familiar and you can relate to the findings. But what I see sometimes is what happens at the other end when parents are in their 60’s and 70’s and look back.

Spending money while you have it is not as noticeable as looking back at those times when you had it and wishing you had maybe spent a little less. I talk to a lot of people about money, not just clients, and it is always a little sad to hear those stories from people that are struggling in retirement because they spent money without thinking or planning when they had it coming in. Passing money to your adult children when they need it is a pleasure, a must even, but only if you can afford it yourself.

At Investor Profile we can help you to plan ahead and work out whether you can afford to make those gifts to your children, whether they are regular or one-off items. I recently wrote a blog titled “Tax on Gifts to Children” which outlines some of the basic tax considerations you should also take into account before making gifts to your children.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on