The report from financial provider OneFamily says that the Bank of Mum & Dad may be dead as families move wealth through several generations. It says 8.6m people are part of families that depend on both the younger and older generations chipping in financially.
Family members are providing financial support for their own parents and siblings as well as their children, as families across the country “club together.”
More than half (58%) of UK families now talk openly about their finances and a fifth (18%) share what they earn. Only one in ten (11%) of families still believe that discussing money is taboo.
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.
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 one in 10 (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 among all members.
The report says family finances are now more intertwined than ever. The research reveals that two thirds (58%) of UK families now talk openly about their finances, with a fifth (18%) all knowing exactly how much each other family member earns. Only one in ten (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 that there is a rise in cross-generational support. As such, it is encouraging to see a growing number of families being honest and frank about money issues.
Research was carried out by Opinium Research between 26 May and 30 May with a nationally representative sample size of 2,018 parents and grandparents.