Young Australians are turning to their families to help weather the COVID-19 recession, with Mozo research finding that 30% of Australian parents have provided financial assistance to their adult children since the crisis began.
“COVID-19 has been a financially devastating time for many Australians, with younger generations particularly hard hit as they’re more likely to be in customer-facing or service related jobs, or just starting out in their career,” said Kirsty Lamont, Mozo Director.
“It’s only natural that parents want to step in to help struggling adult children, and to date, parents have contributed a whopping $26.8 million to their offspring since the virus hit Australian shores.”
While cooking meals and buying groceries have been the most popular ways for parents to lend a hand, one in ten parents admitted to paying their children’s bills, with the average weekly spend coming in at $130.
“During COVID-19 we’ve had approximately 2.4 million parents digging into their back pocket to help their adult children stay on their feet. The overwhelming majority of parents (77%) do not expect repayment from their child or children,” said Lamont.
One in three parents surveyed also admitted to helping one adult child more than another, with 41% helping the first born children more, 38% helping the second born more, and 21% helping the third child more.
But that generosity is putting a strain on many parents’ finances, with 67% drawing on their savings and 37% having to cut back on their usual expenses. All told, one in five parents felt they were putting themselves at risk of financial hardship by helping their adult offspring.
The effects of the COVID-19 recession have been keenly felt across all age groups, but things have been especially tough for young Australians, who were already facing a job market that hadn’t yet recovered from the 2008 global financial crisis.
The current crisis has made existing pain points even worse, with job losses and wage reductions forcing many to reevaluate their goals of home ownership and financial independence.
Mozo’s findings also come on the heels of research by the Australian Institute of Family Studies, which found one in five parents in their 50s have had an adult child move back in with them during the pandemic.
For information about the assistance available to households, along with tips to keep your finances in good health amid the current crisis, browse our guide to coronavirus and your finances.
Savings account comparisons on Mozo - last updated November 21, 2020
- MyState BankMyState Bank
Bonus Saver Account
- Bank of QueenslandBank of Queensland
Fast Track Saver Account
^See information about the Mozo Experts Choice Savings Accounts Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.