Bank of mum and dad busier than ever
Written by admin on October 1, 2024
Three-quarters of over 50s are financially supporting their kids in some way even after the children have moved out of home, research has found.
A survey of more than 1200 Australian parents over the age of 50, commissioned by Australian Seniors, lays bare the financial burdens being felt on the back-end of this period of high inflation and the ongoing housing crisis.
Three-in-four empty nesters are in some way supporting their kids financially after they’ve flown the coop, the survey finds.
More than 30 per cent of parents have paid or given an early inheritance to a child to cover a bond, rent or a house deposit.
Though the survey did not delve into how many children had moved back home, data from the 2021 census shows 456,500 people 25 to 34 years old lived with their parents, up 16 per cent since the 2016 census.
Relationships Australia executive and clinical psychologist Elisabeth Shaw said the effect of adult children returning home because of financial stress cut deeper than just bank accounts.
“I commonly see families where there were insufficient discussions about the terms of coming home,” she said.
“There can be unspoken expectations or loose arrangements which can lead to resentment and conflict. The narrative that children are coming home for financial reasons can immediately lead to an assumption that they will be fully financially supported rather than agreeing to pool resources so everyone benefits.”
Of the survey respondents, 76 per cent of parents would expect their adult children to help with chores should they move back home, and 62 per cent would expect their offspring to contribute to the household budget.
Well over 70 per cent of respondents said their child having nowhere else to go, financial stress and relationship struggles would warrant a return home.
Almost two-thirds (65 per cent) of former empty nesters said they wished their kids had stayed at home longer.
A December 2022 Melbourne University survey found 56 per cent of Gen Z first-home buyers received a familial gift or loan for their deposit, more than double the rate of Gen X first-time buyers.
Other research has estimated familial support for first-time buyers has increased fivefold during the past decade.
The “bank of mum and dad” contributed $2.7bn to the Australian housing market last year, 1 per cent of lending in the sector.
