'Bank of Mom and Dad' remains open for business across Baltics

A new survey conducted by Citadele bank and the Norstat research agency suggests 80% of Lithuanian, 56% of Latvian and 55% of Estonian parents support their children financially even after they reach adulthood.

Among the Baltic countries, there are interesting differences in how parents and children support each other financially.

32% of Latvians admit that their parents help or have helped them cover their everyday expenses. Furthermore, almost a fifth had help from their parents in covering their study expenses. 10% received help from their parents to buy a home, for example, helping with a deposit, and 10% had help purchasing a car.

The parents of just 6% of those surveyed had formed savings for their future, which is significantly different from Lithuania, where 31% have received savings from their parents.

Parents financially support adult children

Compared with the other Baltic countries, Latvian parents were more likely to help with everyday expenses, but less likely to help with buying a car or house or covering tuition fees.

Lithuanian parents are most active in supporting their children financially. Like in Latvia and Lithuania, one third (30%) help their children with everyday expenses. However, setting aside savings for their children is significantly more popular in Lithuania than for their Baltic neighbours: 31% of Lithuanians responded that their parents had saved for their future. 28% had parents help with their university tuition, while 19% received help buying a home, and 17% received help buying a car.

26% of Estonians have received help from their parents for everyday expenses. 18% received help with tuition, 16% for buying a home and 11% for buying a car. 10% of those surveyed answered that their parents had saved money for their future.

Children support parents in non-material ways

However, the funds do not only flow in one direction. Children also support their parents financially and in other ways. 19% of Latvians support their parents financially every so often, 5% do so monthly, and 8% regularly cover various parents expenses. Furthermore, 33% support their parents in other ways every so often, most often young people aged up to 24.

Children supporting parents financially

Among the Baltics, Lithuanians are most likely to support their parents financially. 31% of Lithuanians support their parents financially every so often, 6% do so monthly, and 7% do so regularly. 29% give their parents other kinds of support.

In Estonia, 18% support their parents financially every so often, 3% do so monthly, and 6% do so regularly, according to the survey. 42% support their parents in other ways.

The survey was undertaken in May 2021, with a total of 3,000 respondents from the Baltics.

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