Australians have relied even more on the bank of parents (and grandparents) to save money amid cost-of-living pressures, according to the latest research by Compare the Market.
The consumer comparison experts’ annual survey of Australian parents and grandparents found one in six have helped purchase clothes, toys and essential items (15.9 per cent) for their children or grandchildren in the past year.
This was closely trailed by gifting money (14.5 per cent) and providing free care (13.7 per cent).
Compared to research from 2024, a higher proportion of Australian parents and grandparents admit to financially supporting their younger generations in more. cost-of-living areas than in the past – at 93.3 per cent compared to 73.3 per cent last year.
Family to the rescue
A recent Compare the Market survey of Australian renters also found a quarter believed they will not be able to purchase a home without the financial support of their parents or grandparents (25.8 per cent), while nearly half of renters do not plan on buying a house altogether (42.3 per cent).
The study has again demonstrated that older Australians are supporting individuals and families weathering increasing cost-of-living pressures.
Baby Boomers are often blamed by fuelling inflation with their spending. After all, we haven’t faced the same intense cost-of-living pressures that have made the ‘Great Australian Dream’ seemingly feel impossible today.
But in fact, 93 per cent of parents and grandparents now support their younger generations in some way to combat the rising cost of bills, groceries and other essentials – a 20 per cent increase compared to last year.
Whether it’s simply cooking for them or contributing money, this intergenerational wealth transfer is proving to be an essential ‘third income’ for many Australians to save hundreds – if not potentially thousands per year.
Government needs to step up
Of course, not everyone can access this benefit. As intergenerational wealth is passed down to the lucky among us, we could see a widening gap between the haves and the have nots.
That’s why it’s so important for governments to funnel the lion’s share of cost-of-living support to average Aussies who really need a leg up.
