Three-quarters of U.S. adults who live in multigenerational households report that their caregiving or financial responsibilities to others in their household have required them to make unexpected financial changes, according to survey results released this week by the National Endowment for Financial Education.
For purposes of its research, NEFE defined multigenerational households as respondents who either live with adult children older than 25, live with grandchildren of any age or, for respondents older than 25, live with parents or other relatives.
The survey found that 46% of respondents described their quality of life as worse than expected. However, for those who had received financial education in high school and found it useful, 67% said their quality of financial life was better than expected.
Sixty-five percent of survey participants said the financial pressures of their generation are tougher than they were for their parents’ generation, and 48% said the financial pressures of their generation will be tougher than it will be for the next generation(s).
Respondents were more likely to say that the economic conditions of their community are excellent or good compared to the those of the country.
“Multigenerational households, because of their make-up and unique circumstances, often encounter many of the same financial issues as nuclear or single parent families, but instead of encountering these issues progressively, they are more likely to face them concurrently,” NEFE’s president and chief executive Billy Hensley said in a statement.
“Reassuringly, the data indicates that financial education, while not a single solution, is an aid to those who received it in high school.”
The findings are based on an online survey conducted in August by SurveyUSA among 1,475 U.S. adults, including 812 who were identified as living in multigenerational households.
Cost of Financial Support
The median amount respondents in the 18-to-49 age group said they spend per month to support other adults is $500, and for older respondents, it is $400. Thirty-nine percent of those with preteen children at home pay for professional child care in some capacity, self-reporting an average cost of $320 per week.
Forty-nine percent of respondents support adult children or grandchildren financially, according to the survey. Of that group, providing a place to live and help with living expenses are the most common forms of financial support.
Seventy-three percent of respondents reported that their caregiving or financial responsibilities to others has required them to take actions they would not have otherwise, including:
- Take out credit card debt, 20%, or other personal debt, 16%
- Delay a life event, 19%
- Make an unplanned withdrawal from a retirement fund,13%
- Delay retirement, 11% among those between 50 and 64 years old
Fourteen percent of respondents said they have returned to work or have taken an additional job.
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