Bank of Mum and Dad handles deposits as well as withdrawals
Research by M&S Bank and the Centre for Economics and Business Research (Cebr) found that Millennials and Gen Z-ers provide the most everyday financial support to their families. Almost half (49 per cent) of millennials (23-38 year olds) have provided financial support to their parents. This increases to 54 per cent for Gen Z-ers (16-22 year olds).
The group said this showed intergenerational support is more complex than stereotypes might suggest.
Millennials give the most. On average, 23-38 year olds have given £1,161 to family members over the last 12 months to help with their day-to-day finances, compared to £871 from 16-22 year olds, £756 from 39-54 year olds and £498 from 55-73 year olds.
The research also showed that a higher percentage of the older generation want to receive help and advice with their financial decisions rather than cash handouts.
Paul Stokes, head of products at M&S Bank, said: “Despite common perceptions about the bank of mum and dad, what we are seeing is that the ‘family bank’ works both ways, with people ‘depositing’ and ‘withdrawing’ from the family finances at different times in their lives.
“While millennials or Gen Z-ers may be boomeranging back to live in the family home at some stage in their adult lives, with parents often supporting their children to get a foot on the property ladder, this support is not a one-way street with many younger generations also helping parents, and other family members. It also works across generations, with siblings now more commonly purchasing property together.”
Kay Neufeld, head of macroeconomics at the Cebr, said: “The research clearly demonstrates that as lifestyles and family models evolve, so do financial realities among family members. While parent-to-child support continues to play an important role, the report shows that there are also significant financial flows from children to parents as well as between siblings. From the cost of care and housing to simply helping out with ongoing bills, many older family members are grateful for any financial support they receive.
“When times get tough, however, more traditional family roles prevail with the research showing that people are four times more likely to rely on their parents during financial hardship than on their children.”