- Lithuanian parents are most active in giving their children various forms of financial help
- 32% of Latvians admit that their parents help or have helped them cover their everyday expenses
- 19% of Latvians support their parents financially every so often, 5% support them monthly, and 8% regularly cover various expenses for their parents
- The parents of just 6% of those surveyed saved for their future goals, which is significantly lower than Lithuania, where 31% have received money saved by their parents
80% of Lithuanian, 56% of Latvian and 55% of Estonian parents support their children financially even after they reach adulthood, most often helping with everyday expenses, while adult children are more likely to give their parents non-financial support, according to a survey of the Baltics by Citadele and Norstat research agency.
Among the Baltic countries, there are 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.
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.
Lithuanians give the most financial help
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.
“We see that parents and children are caring for each other both financially and with their time and work. Although habits in each country differ, parents and children support each other. Parents are helping the younger generation both in everyday matters and financially with significant decisions like higher education and buying a house. Lithuanians excel in saving for their child’s future. Meanwhile, children are more likely to support their parents in other ways, such as financing trips together or home renovations. Most young people under the age of 24, who are not yet financially stable, state that they support their parents non-financially. However, some of those surveyed stated that they help their parents financially every month, indicating a lack of pension savings. The main takeaway is timely creation of short- and long-term savings, both for retirement and for the child's future. The higher the percentage of income is accumulated, starting from 10% and growing to the recommended 20%, the greater the peace of the future plans” explains Anna Fišere-Kaļķe, Chairman of the Board for Citadele subsidiary companies CBL Atklātais pensiju fonds and CBL Life.
Children often support their parents in non-material ways
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.
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 of 2021 in collaboration with Norstat, with a total of 3,000 respondents from the Baltics.