MILLENNIALS have many things in their favour.

Now in their twenties and early thirties, they are arguably the most educated generation in history and have grown up in a digital era full of new opportunities.

But they also face significant financial challenges.

The financial crisis changed savings and financial patterns across age and income groups.

People all over the UK are becoming increasingly concerned about the state of their finances both now and in the future.

The Centre for Economics and Business Research was commissioned by Brewin Dolphin to examine the important trends in wealth, income, saving and lifestyles across income and age groups based on a wide range of official datasets and a detailed survey of 11,000 people.

This third part of the report published last week looks at the financial challenges facing millennials and how they can get help from their grandparents or parents to get on the housing ladder and start to build a pension pot.

Of course, young people rarely had it easy in previous eras, but these are a different set of challenges to those faced by their parents or grandparents.

Millennials are struggling with more university debt than any generation to date.

At the same time, rising house prices and living costs have made it increasingly difficult for them to get on the housing ladder.

And while life is a struggle for millennials now, the future may not look much brighter.

Beset by so many immediate financial concerns, such as paying off debt, meeting the rent or saving for an elusive deposit, the possibility of long-term saving with a pension or an Isa for a more comfortable future can seem even more remote.

Fortunately, it does not have to be like this.

There is a solution to the millennials’ financial woes – and it lies in the family.

Grandparents, by tapping into their own wealth, can give the younger generation the financial leg-up they so desperately need.

Of course, leaving an inheritance at death to younger family members is nothing new.

But gifting wealth now, while still alive, could be transformative for the younger generation and save on inheritance tax too.

The wealth that many grandparents have accumulated can be used to help grandchildren on the housing ladder and give them the headroom to build up their pension and other savings.

Instead of having nothing after 25 years of renting, millennials could buy a home and build a pension pot that together could be worth over £366,000 if they get a financial leg-up from their grandparents.

A one-off gift from grandparents can help transform the lives of their grandchildren, according to the Brewin Dolphin Family Wealth Report.

Liz Alley, divisional director of financial planning at Brewin Dolphin said: “We are urging millennials to ask ‘Grandbank’ – the bank of their grandparents – for a deposit for a home.

"This would get millennials out of the rental trap and onto the property ladder and, with any rental savings then ploughed into a pension, they could also have a six-figure pension pot.

"Most over-55s intend to support their family financially, via their will.

"However, releasing the same money now could change millennials’ lives, both now and in the future.

"The impact of gifts of any size, either one off or regular, shouldn't be underestimated."

To find out more about the Brewin Dolphin Family Wealth Report, visit brewin.co.uk/sharing-our-thinkingJeffrey Ball is an assistant director at wealth management firm Brewin Dolphin, based in Newcastle.The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change. The information contained in the Brewin Dolphin Family Wealth Report is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The value of investments can fall and you may get back less than you invested. The information is for illustrative purposes only and is not intended as investment advice.