Most Australian parents financially support their adult children

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Only one-third of handout recipients are ashamed of their reliance.

Whether it's paying the rent, covering the bills, buying a new fridge or even a new house, nearly three-quarters of Australian parents provide their adult children with some form of financial support, according to new survey research.

A study conducted by finder.com.au has found 74% of parents with kids aged over 18 contribute to the "sponge society" by giving their children handouts, with one-fifth of these recipients relying on their folks to pay their rent.

Despite the large amount of support provided, only one in three (28%) recipients are embarrassed or ashamed of this reliance. Surprisingly, a small contingent (15%) are even proud to admit they receive this money.

However, these financial handouts are occurring less frequently. The number of Australians receiving financial help from their parents has fallen 12% over the last 12 months.

Around one-fifth (19%) of parents providing assistance say their kids struggle to properly manage their finances.

Some parents (12%) provide their adult kids financial support because their children are saving for a first home deposit, while others (11%) help because their kids are in debt.

The Mortgage Choice First Home Buyer Survey found nearly a third of first home buyers worry they won’t be able to meet their repayments, in spite of record low interest rates.

Purchases include big ticket items such as household appliances, white goods, free or low rent, paying bills or even buying a property.

When it comes to male and female adult children receiving financial handouts, women receive almost twice as much as men when it comes to substantial purchases, such as a house or car.

Men (16%) are prouder than women (14%) to receive help, while more women (9%) are ashamed of the support than men (7%).

South Australia has the most independent adult children, Victorians (65%) receive the most financial help from their folks and Queenslanders (23%) are the most embarrassed to receive support.

If you're embarrassed about receiving financial help from your parents, consider opening a savings account, discussing options with a financial planner or better manage your money with these helpful budgeting tips.

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