brits spend almost £10,000 a year supporting families

16 September 2006

As financial pressures lead to women waiting longer to start a family1, new research by engage Mutual Assurance reveals that the average breadwinner is spending £9,648 a year on supporting their family, with children reducing their parents' personal spending money by more than a third (39%).

In a month that has seen the costs of education, utility bills and house prices soar, the latest 3GB research2 from engage exposes the financial sacrifices made by Britons to support their families. engage Mutual Assurance asked a representative GB sample of over 2,200 people how much they spent in a month supporting their families3.

• The average family breadwinner spends £804 a month supporting their family, over nine times more than they spend on themselves (£85)
• Men are living up to their traditional role as family provider, spending £907 a month on supporting their loved ones, compared to women who spend £709.
• 45 to 54 year olds, with children approaching adulthood, are spending the most on their families, forking out £1,017 a month.

• Despite recent findings from engage defining a new 'BOMAD' generation of adult children over 25 still 'Banking on Mum and Dad', parents with children under 25 spend, on average, almost twice as much supporting their families than people with grown up kids (£1,017 compared to £590 a month).
• Once the kids move out of home, parents see their family outgoings nosedive from £1,018 to £699 a month..

• Despite coming second in the family spending poll, Londoners, who allocate £981 a month to their families, contribute the lowest proportion of their monthly income to their families (28%).
• Families in the South West cost their breadwinners the most (£1,070 a month) and the highest proportion of their salary with half (50%) of their monthly pay packet going to support relatives.

• Despite recent findings from engage
• Once the kids move out of home, parents see their family outgoings nosedive from £1,018 to £699 a month..

• Parents with children under 25 spend, on average, 39% less on themselves4 than people under 25 yet to start a family. The average adult under 25 spends £123 a month on clothes, going out and personal grooming, where as parents spend just £75.
• Interestingly, retired grandparents treat themselves the least, dedicating just 21 per cent (£51) of their monthly income to personal luxuries.

“As our 3GB research highlights, meeting the changing needs of modern families means making major financial sacrifices which affect lifestyle expectations and often leave the breadwinner with just half of their monthly income. We can't stress enough the importance of planning well in advance for the future by saving little and often as early as possible - particularly when the costs associated with dependents of all ages are considered..”

“Regularly investing small amounts in tax efficient accounts means savings can build up over time without paying more tax than is necessary. With younger generations increasingly turning to the parents for support, having money set aside means unexpected expenses can be accommodated. ”

1 BBC News Online, February 2006, http://news.bbc.co.uk/1/hi/uk/4728950.stm

2 '3GB' is the engage

3 When estimating the cost of supporting their families, respondents were asked to consider expenditure on: rent on a family home; mortgage on a family home; savings and investments for family members; servicing debt of family members; utility bills for the family home; money given to family members; running the family home (food and groceries for my household); cost of care for family members; funding children's education; and any other expenses.

4 When estimating the amount of money they spent in a month on themselves, respondents were asked to consider expenditure on: hair cuts, clothes, socialising, sports, hobbies, entertainment, cosmetics, and other personal expenses.

1. If using this article on a website, please link to www.engagemutual.com using the following hyperlink text : engagemutual.com> engage Mutual Assurance - meeting the changing needs of today's modern families

2. engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it's wholly-owned subsidiary engage Mutual Funds Limited (EMFL).

3. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores and NAAFI Financial.

4. The organisation is title sponsor of the engage Super League - which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls, Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalans Dragons.

5. engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk.

6. engage Mutual Assurance is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.

7. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.

8. Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA). 9. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234