Grandparents fast becoming financial mentors
In the 1960s, the term ‘grandparent’ evoked images of greying hair and quiet living. Minding the grandkids was an at-home affair, and Christmas presents usually involved something hand-made. Enter the Baby Boomers. The generation of free thinkers who changed the world are now busy transforming retirement into the very antithesis of a slowing lifestyle and showing their grandkids a whole new world too. For Australia’s 6 million Boomers, the role of grandparent is very different to the one they grew up with. So, what’s changed?
Grandparents supporting their families in new ways
Grandparents still cherish spending time with the grandkids - a practice invaluable for the health and wellbeing of both parties, but they are spending that time in different ways, thanks to the dramatic social and economic change that has shaped Australian families over 40 years. Highly educated and resourceful grandparents now provide practical, emotional and financial support to their children and grandchildren in more ways for longer. In 2024, grandparents are child-carers, entertainment providers, travel coordinators, education supporters, career advisers and financial mentors.
Caring for grandkids on a regular basis
Remember what your household looked like when your kids were growing up? Now compare it to those of your adult children - what a difference a generation makes. Australian families are smaller than ever before, with average household size falling from 3.6 people per household in 1966 to 2.5 people in 2022. Couples are also starting a family later in life, once their career is established and blended families with stepchildren are more common. Typically, both parents continue to juggle parenting and significant work hours. As a result, 26% of Aussie children - nearly one million kids - are cared for by their grandparents on a weekly basis.
Embracing the role of financial mentor
Spending so much time with younger generations provides plenty of opportunity to shape their financial goals and values and mentor kids on the basics of earning, saving, budgeting and investing. Clients often talk to us about how to best help their kids and grandkids financially both now and as part of their lasting legacy. Many of our clients have also set-up a Rev Invest account on behalf their grandkids to help them learn about investment and develop strong wealth building habits in a world where home ownership is by no means the certainty for future generations that it was for theirs.
Helping your grandkids learn about investing
Rev Invest has reported strong performance across our range of portfolios since inception and clients have enjoyed sitting with their grandkids, checking in on their online investment and watching it grow.
It’s also a great opportunity to teach kids that markets go up and down and wise investors take a long term view with plenty of diversification to weather the inevitable market storms. One thing is for sure, our grandkids have time on their side, and we all know, the best time to plant a tree is yesterday.
To find out more about opening a Rev Invest account for you grandchildren (The perfect Christmas gift for the hard-to-buy-for teen saving for their first car!) visit revinvest.com.au where you can easily open an account in minutes.
General advice disclaimer: This article has been prepared by FMD Financial and is intended to be a general overview of the subject matter. The information in this article is not intended to be comprehensive and should not be relied upon as such. In preparing this article we have not taken into account the individual objectives or circumstances of any person. Legal, financial and other professional advice should be sought prior to applying the information contained on this article to particular circumstances. FMD Financial, its officers and employees will not be liable for any loss or damage sustained by any person acting in reliance on the information contained on this article. FMD Group Pty Ltd ABN 99 103 115 591 trading as FMD Financial is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977. The FMD advisers are Authorised Representatives of FMD Advisory Services Pty Ltd AFSL 232977. Rev Invest Pty Ltd is a Corporate Authorised Representative of FMD Advisory Services Pty Ltd AFSL 232977.