10 min read

Death of the Bank of Mum & Dad?

Posted in: Research

  • 8.6 million 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

8.6 million parents and grandparents (25%) are now part of families that share their wealth across multiple generations, with younger and older family members providing financial support to one another, according to customer-owned OneFamily.

While many young people still look to their parents for support, the ‘Bank of Mum and Dad’ seems to be on the wane as more family members across generations club together to help each other financially. 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 amongst all members.

Money Talks
While money issues have also traditionally been seen as taboo for Brits to discuss, family finances are now more intertwined than ever prompting more and more financial conversations across the kitchen table. OneFamily’s 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 commented:

“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. As such, it is encouraging to see a growing number of families being honest and frank about money issues.

“At OneFamily our aim is to help families help each other and the products we offer, such as lifetime mortgages and junior ISAs, enable families to financially support each other, from when they are children to when they are older and have cash in assets to spare to help younger family members.”