Home loan repayments, living expenses paid by bank of Mum and Dad | The Business | ABC News

As cost of living pressures persist, more parents and grandparents are stepping in to ease the financial strain of their children. From covering childcare fees to helping with house deposits and everyday expenses, the so-called 'bank of Mum and Dad' is playing an increasingly crucial role in household budgets. A survey by investment manager UBS suggests the majority of funds given to adult children from parents and grandparents was spent on everyday living expenses like groceries, insurance, petrol, and bills. USB global strategist Richard Schellbach says, "that's why the consumer in Australia has been able to weather the interest rate hikes over the last few years far better than we would have thought, because they're getting help with their weekly bills and food and utility expenses". After living expenses, the second most common use of family-provided funds was mortgage interest payments, while home purchases ranked third. Trent Wiltshire from the Grattan Institute's economic prosperity team said, "back in the 90s, the typical older household had about three times as much wealth as a younger household. Now, it's about five times as much wealth as a younger household".
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