Before the impact of COVID-19, 23% of people prioritised helping children or grandchildren via financial gifting.
Before the impact of COVID-19, 23% of people prioritised helping children or grandchildren via financial gifting, but this has increased to 31% as a result of the pandemic, according to research by Hodge.
Parents were found to be responsible for 72% of financial gifts, but gift givers also included children (14%) and siblings (14%).
A third of people had received a financial gift from family, with those aged between 25 and 34 the most likely to have received one.
The most popular reason for gifting money to family was for special occasions such as a quarter of gifts were given for weddings and birthdays, but 11% of people have received money to help with big purchases such as cars and houses.
19% of people received help with day-to-day finances, and 14% had paid off debt.
40% of beneficiaries expected to pay their parents back, but this dropped to 28% if the gift came from grandparents.
From the gift donor’s perspective, 26% expected the gift to be paid back, but this dropped to 15% among grandparents.
Emma Graham, business development director at Hodge, said: “Our study showed that, as a nation, we all want to help our family out when it comes to money.
"And whilst we all think of the Bank of Mum and Dad or Gran and Grandad as a traditional source, we were surprised to see that 14% of brothers and sisters are also helping out.”
Graham added: “It’s clear that families feel strongly about offering financial support to each other if they are able and this has increased since the COVID pandemic.
"Before COVID, 23% of people prioritised helping their families out financially in the next five years.
"Since the COVID-19 outbreak that has increased to a third of people saying helping a family member financially had become more important.
“So, it is clear that the COVID-19 lockdown and subsequent predicted economic downturn, has led to more families looking to share wealth to help younger children or grandchildren during this difficult time.
"Many people may look to later life mortgages, where many products have reduced their rates and have flexible lending criteria, to help out a loved during these difficult times.”
