Family Finances: A Post-Recession Balancing Act

Family finances call for a tricky balancing act that requires moms and dads to weigh their financial needs against the financial interests of future generations – a calculation that’s become even more stressful over the past five years of declining wealth and high unemployment.

Women feel particularly torn between the desire to help their children and grandchildren and the need to save for retirement, according to the results of a MetLife study released today. Almost 80 percent of women surveyed want to give more to their families, but an even higher percentage say it’s important to have a secure retirement.

Women who are members of the Baby Boomer generation, those born between 1946 and 1964, are most adamant about building a nest egg. Nearly 90 percent say they need to prepare for retirement to avoid becoming a burden on family members later in life, according to the study, which finds that, as women age, they become more focused on retirement goals and less concerned with using the family finances to help younger members. According to a MetLife statement, “As women get older, they indicate they’ve contributed significantly to their children and that the time has come to focus on their own needs for both enjoyment and independence.”

When it comes to paying college costs, Gen Y women, who are currently between the ages of 34 and 21, feel most strongly that parents should provide support. Fifty-seven percent of Gen Y women say parents have “absolute responsibility” to help with college. Twenty-seven percent say parents have “moderate responsibility,” while only 16 percent say parents have “slight” or “no responsibility” to provide financial support to children in college. The share of women who feel parents have an absolute responsibility falls to 51 percent for women who are members of Gen X, those born between 1965 and 1976, and to 45 percent for Baby Boomers.

Women are more likely than men to feel responsible for an adult child who is going through a hard time, reports MetLife. A greater share of women than men, 47 percent and 42 percent, respectively, say they would allow an adult child to live with them if they were having financial problems. Women are also more likely than men, 61 percent vs. 56 percent, to help take care of an adult child in poor health.

Men and women also express diverging attitudes regarding younger children and family finances, according to an October survey conducted by Millionaire Corner. Men are more likely than women to say it’s important for high school students to obtain a minimum wage job, 50 percent vs. 47 percent, respectively. A greater share of men, as opposed to women, say it’s important for children to pay for their own college education, 44 percent vs. 38 percent, respectively. Women are more willing than men to give children an allowance to “learn the value of money,” 71 percent vs. 69 percent, respectively.

The Mars/Venus divide extends to other aspects of family finances, as well, according to Millionaire Corner studies that show men feel more confident in their investment abilities and more willing to take risks.