Extract from Successful Investing Issue 4 2009
The Global Financial Crisis (GFC) has put family balance sheets under intense strain. The Baby Boomers have seen their asset values decline and many are being forced to delay retirement by up to five years.
Generation X is buckling under the pressure of doing the balancing act of managing families, friends, work and finances. For the first time Generation Y’s are facing the fear of losing their jobs, dealing with high credit card debit and looking at the prospect of moving back in with their Baby Boomer parents.
Even though it appears we are over the worst of the economic crisis, investors are still feeling the strain on the family finances. This sentiment has been validated in a recent research report conducted by St George Bank1. The Bank of Mum & Dad research reveals that Baby Boomers and their Generation Y children are under financial pressure and need help. According to the research results:
- Over 70% of Baby Boomers said the GFC has caused the value of their assets to erode
- Nearly 75% of Baby Boomers are paying more attention to their personal finances compared to a year ago
- For Baby Boomers with Generation Y adult children, nearly half are no longer willing or able to provide the same financial support and feel guilty when their adult children ask for help or support
- 80% of parents of adult children wish their children planned for their future better. They want their children to spend less on non-essential items, save more, be more financially independent and not to expect as much financial help
- Key issues for Generation Y are that they don’t know how to budget or save. 24% have never had to budget and save and just 36% rated themselves as experienced at budgeting and saving
