You are here: Home - Household Bills - News -

Shift from personal finance to family finance as generations club together

Written by: Paloma Kubiak
More than eight million parents and grandparents are part of families who depend on multi-generations to provide financial support to each other.

While many young people look to the ‘Bank of Mum and Dad’ to help them with their finances, it seems parents are also looking for financial support.

It found that while parents are the most likely relatives to provide support for younger members of the family, many will also give financial aid to their own parents and siblings too.

As such, 8.6 million parents and grandparents (25%) are part of families who share money across multiple generations to support one another, according to OneFamily.

When asked who they had supported, nearly half of parents and grandparents (46%) had given money to their sons and daughters, one in five (20%) had provided monetary assistance to their parents and 10% had helped their siblings financially.

Similarly, half (55%) of adult children living at home will contribute to their parent’s bills – with 10% of families splitting the costs equally between members.

Discussing money issues has traditionally been seen as a taboo subject for Brits but as family finances are now more intertwined, it’s prompting more financial conversations across the kitchen table.

OneFamily’s research reveals two thirds (58%) of UK families now talk openly about their finances, with a fifth (18%) knowing exactly how much each family member earns. Just 11% of families now find talking about money uncomfortable.

Georgina Smith, managing director of lifetime mortgages at OneFamily, said: “In this day and age with changing pressures on families such as children staying at home well into adulthood and older relatives moving back in, we are seeing a shift from personal finance to family finance, with relatives clubbing together to help each other manage their finances.

“We know that parents will do all they can to assist their children financially, but our research shows there is a rise in cross-generational support as every generation feels the squeeze of day-to-day expenses. As such, it is encouraging to see a growing number of families being honest and frank about money issues.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week