Australians have relied even more on the bank of parents and grandparents to save money amid cost-of-living pressures, according to the latest research by Compare the Market.
The consumer comparison experts’ annual survey of Australian parents and grandparents found one-in-six have helped purchase clothes, toys and essential items (15.9%) for their children or grandchildren in the past year.
This was closely trailed by gifting money (14.5%) and providing free care (13.7%).
Compared to research from 2024, a higher proportion of Australian parents and grandparents admit to financially supporting their younger generations in more cost-of-living areas than in the past – at 93.3% compared to 73.3% last year.
| How have you helped your children and grandchildren in the past 12 months? | Proportion of responses |
| I cook for them | 17.6% |
| I help purchase clothes, toys and essentials | 15.9% |
| Gifting money | 14.5% |
| I provide care free of cost | 13.7% |
| Contributing to cost of school/daycare | 11.5% |
| Contributing to key household bills | 8.0% |
| I haven’t helped in any way | 6.7% |
| Lending money | 4.6% |
| Contributing to the purchase of a car | 3.9% |
| Contributing to property purchase | 3.7% |
Source: Compare the Market
A recent Compare the Market survey of Australian renters also found a quarter believed they will not be able to purchase a home without the financial support of their parents or grandparents (25.8%), while nearly half of renters do not plan on buying a house altogether (42.3%).
Economic Director, David Koch, said the study has again demonstrated that older Australians are supporting individuals and families weather increasing cost-of-living pressures.
“Baby Boomers are often blamed by fuelling inflation with their spending. After all, we haven’t faced the same intense cost-of-living pressures that have made the ‘Great Australian Dream’ seemingly feel impossible today,” Mr Koch said.
“But in fact, 93% of parents and grandparents now support their younger generations in some way to combat the rising cost of bills, groceries and other essentials – a 20% increase compared to last year.
“Whether it’s simply cooking for them or contributing money, this intergenerational wealth transfer is proving to be an essential ‘third income’ for many Australians to save hundreds – if not potentially thousands per year.
“Of course, not everyone can access this benefit. As intergenerational wealth is passed down to the lucky among us, we could see a widening gap between the haves and the have nots.
“That’s why it’s so important for governments to funnel the lion’s share of cost-of-living support to average Aussies that really need a leg up.”
Compare the Market commissioned PureProfile to survey a nationally representative sample of 1,007 Australians in March 2025.
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Henry Man | [email protected] | +61 474 368 908
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