Why financial planning is a family affair
The younger generation may be portrayed as relying on the ‘Bank of Mum and Dad’ to boost their savings or mortgage deposit, but it turns out this isn’t a one way street.
Research by M&S Bank has revealed that younger generations both ‘deposit’ and ‘withdraw’ from the Bank of Mum and Dad – challenging common perceptions
Its analysis found almost half (49%) of millennials (23-38 year olds) have provided financial support to their parents.
This increases to 54% for the younger Gen Z-ers (16-22 year olds), who have supported their parents more than any other age group.
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, £498 from 55-73 year olds and £563 from the over 74s.
When it comes to financial support across the family, interestingly, a higher percentage of people want to receive help and advice with their financial decisions (28%) than cash handouts for every day expenses (19%) or one-off larger payments (11%).
The M&S Bank research found that emotional support was the most important way in which families help each other (for 67%). The majority of millennials and Gen Z-ers also expressed that they would like more emotional support from their families, with the highest percentage in the 16-22 age bracket.
Even siblings are helping each other out. The financial support provided by brothers and sisters was particularly key for 16-22 year olds (17%) and 23-38 year olds (20%).
It is good to talk when it comes to your finances and involving your family in your planning can ensure your goals are entwined and set up in the most efficient way.
- The value of an investment and any income from it can fall as well as rise and you may not get back the original amount invested.
- Past performance is not a reliable indicator of future performance and should not be relied upon.
