Grandparents are playing an increasingly prominent role in supporting younger generations, with half of Australian grandparents (52%) currently, or planning to, provide financial assistance to their grandchildren, according to a new report.
The 2024 MLC Financial Freedom Report says this assistance ranged from one-off financial gifts (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 upon 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 in a statement that family support, especially for younger generations, goes beyond providing short term relief – it fosters a foundation of financial security and confidence.
“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.”
…one in four (24%) say they would benefit from professional financial advice…
Amongst the other findings of the wide-ranging report were:
- Most people lack confidence in their ability to manage their finances, with 41% feeling only somewhat equipped and a combined 28% feeling slightly, or not at all, equipped to do so effectively
- Around one in three (30%) believe developing good financial habits would boost their confidence, while one in four (24%) say they would benefit from professional financial advice – this was up from 20% in 2023
- Only one quarter (25%) feel extremely, or very prepared, to navigate unexpected financial challenges, and a further two in five (41%) worry about their finances all the time or often
- More than half of Australians (53%) 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 seven in 10 Australians (70%) say financial wellbeing is key to achieving life’s aspirations but less than one in four (23%) are satisfied with their current position and only three in 10 (31%) feel extremely or very equipped to make effective financial choices.
Mills says Australians view financial wellbeing as the ability to meet their financial needs, live free from financial stress or worries and have the financial freedom to make independent choices.
“While they have big dreams, the 2024 MLC Financial Freedom Report reveals many lack the confidence to achieve them. The research highlights that in today’s world, developing good financial habits, underpinned by family support, is key to building confidence and achieving those dreams.”
She adds that the report shows many Australians are vulnerable to financial shocks and believe they could be doing a better job of controlling their finances, but don’t know where to start or go for help.
“Confidence in managing your money is crucial, but it’s the right advice and accessible resources that bridge the gap between dreaming and doing. Those who seek help for their financial needs, whether it be through tips, coaching and guidance to holistic advice, are better equipped to overcome challenges and build the security they need to take control of their future,” she says.
