The UBS survey of high net worth investors found that most are supporting their children and their parents.
Unemployment, the economy and aging parents make concerns about the financial situation of family members significant. In fact, investors’ second-biggest personal finance concern is the financial situation of their children/grandchildren (58% of those with children are concerned, behind being able to afford the healthcare and support needed in old age). Investors are providing a high degree of financial support to family members and feel good about doing so. Four in five investors with adult children ages 18-39 are financially supporting other family generations in some way. Two in three are supporting these adult children, three in four are supporting their grandchildren, and for those with parents over 70, 28% are financially supporting them.
A significant number of investors are providing substantial financial help, including education funding, paying for large purchases and sharing their home. Even among affluent and wealthy investors, one in five has another family generation (most commonly their adult children) living at home. For investors who are providing seemingly minor financial support—e.g., paying for phone bills, groceries, etc.—even this can have a real impact on their finances over time.
The current jobs picture means that many recent college graduates are moving back in with their parents.