Research indicates a notable shift in the way families are providing financial support, with the traditional “bank of mum and dad” now focused largely on covering living expenses amid rising living costs. A UBS survey of 1,000 adults revealed that approximately 40% had either given or received financial help over the past year, predominantly in the form of cash contributions.
While parents often contribute to housing-related expenses, such as mortgage interest and home purchases, the pandemic and economic pressures have led many families to assist with everyday costs instead. Remarkably, the financial gifts often exceed $100,000, with many surpassing $200,000, reflecting escalating property prices and high-interest rates.
Grandparents are also increasingly involved, contributing 14% of the financial aid, often directed towards school fees and extracurricular activities. However, experts caution that borrowing from family can complicate relationships, emphasising the importance of setting clear terms and documenting agreements to avoid disputes. Mental health professional Peter Quarry noted that clarity surrounding whether support is a gift or a loan is crucial for maintaining healthy family dynamics. Ultimately, as families navigate these financial challenges together, establishing boundaries is essential to prevent misunderstandings and conflicts.