Shift from personal finance to family finance as generations club together
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.”