New research has shown that 25% of families are now sharing money across generations.
According to OneFamily, younger and older family members are redistributing the financial burden by providing support to one another.
It may be, the company state, that this shift may cause the decline of the so called ‘Bank of Mum and Dad’. Whilst OneFamily acknowledges that parents are still the most likely to provide financial support to younger family members, the prime focus is no longer solely on them.
Looking at how the level of support was distributed throughout families, 46% of parents and grandparents stated that they had given money to their daughters and sons. However, 20% also stated that their parents had received monetary help from them, with one in ten claiming that they had assisted siblings financially.
Where children were concerned, over half (55%) of those over 18 who were living at home stated that they will contribute to their parents’ bills. The figures also indicated that 10% of families would split living expenses between all family members equally.
Commenting on the research was Georgina Smith. The Managing Director of Lifetime Mortgages at OneFamily highlighted the shift in family life, with the way in which finances are dealt with having to adapt.
“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 that there is a rise in cross-generational support as every generation feels the squeeze of day-to-day expenses.”
