Grandparents are playing an increasingly prominent role in supporting younger generations, with half (52%) of Australian grandparents providing, or planning to provide, financial assistance to their grandchildren, according to a new report.
The 2024 MLC Financial Freedom Report says assistance ranges from one-off financial gifts to grandchildren (18%) to regular financial support (16%).
It says that among the younger generations, six in 10 (60% of Generation Z; 56% of Generation Y) received financial support from their grandparents when reaching adulthood. This compared with just two in 10 (20%) of Generation X and less than one in 10 (6%) of Baby Boomers.
Jenneke Mills, MLC Head of Technical Services, says support – especially for younger generations – goes beyond providing short term relief.
“By offering support, whether it be through financial education or practical assistance, parents and grandparents are helping to shape how young Australians approach their financial futures.”
Among other findings of the report are:
- Most people lack confidence in their ability to manage their finances
- Around 30% believe developing good financial habits would boost their confidence
- 24% say they would benefit from professional financial advice
- 25%) feel extremely, or very prepared, to navigate unexpected financial challenges
- 53% of Australians regularly think about their dreams, but only one in three (34%) are taking steps to make their dreams a reality
The research, commissioned by MLC, which is part of the Insignia Financial Group, and conducted by McCrindle, surveyed 2,507 Australians across diverse demographics.
It also found that 70% of Australians say financial wellbeing is key to achieving life’s aspirations, but less than one in four (23%) are satisfied with their current position.