Aussies are leaning on their nearest and dearest as cost of living pressures grow, according to new research by Finder. A survey of 1,085 revealed that 1 in 3 (30%) Aussies – equivalent to 6 million people – have leaned on family and friends for financial support in the past 12 months.
What were the findings of the Finder’s survey?
Groceries (16 per cent) were the top expense Australians sought financial help for, followed by rent (9 per cent), and petrol (7 per cent). Next on the list, Aussies also requested monetary assistance to cover medical costs (5 per cent) and school fees (5 per cent).
Of those who asked for financial help, 2 in 5 (44 per cent) called on parents, while just over 1 in 3 (37 per cent) leaned on friends. In addition, the survey showed it wasn’t just older Aussies giving to the young – almost 1 in 10 (8 per cent) got financial support from their kids.
The highest amount of money requested was directed towards mortgage payments, with those needing the help (4 per cent) seeking an average of $3,089. This was followed closely by those seeking money to cover school fees (5 per cent) who asked for an average of $2,897.
Finder also surveyed the generations of Australians. Gen Z needed the most help from friends and family (59 per cent), compared to Gen X (19 per cent) and baby boomers (5 per cent).
What were Finder’s thoughts on the survey results?
Sarah Megginson, money expert at Finder, said, “Asking your friends and family for financial support can be quite difficult but necessary to get through difficult financial times. Help starts with being honest with yourself about the truth of your financial situation.”
”The first step to dealing with your finances is to get your head out of the sand and understand all the expenses going out versus the money you are bringing in. As such, showing your friends or family that you have done the sums to manage your expenses after their help, will make it easier for them to feel like they aren’t wasting their money,” she explained.
Megginson went on, “To get out of financial hardship, you need to clearly understand where you are channelling your money so that borrowing from your friends and family happens in the context of the bigger picture – rather than just a quick fix. You should make a budget that lists all of your income and expenses, including bills, groceries, and extra spending.”
“Shopping around and paying less for things like car insurance and your phone plan, is another way to get back on the front foot. Getting out of financial hardship and changing spending and saving habits takes time, so be patient and stay committed to your plan,” she advised.