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Media centre /
Press release2029: FUTURE FAMILIES FOUNDED ON FORTUNE14 August 2009
Finances shape the family and will be crucial to holding them together by 2029, according to a new report by the Future Foundation for NS&I (National Savings and Investments). The report, Families, Finance and the Future, suggests the existence of a new institution of British life – the ‘Financial Family’ – a collaborative unit of close friends and family marked by financial interdependence. It does not simply show a steady flow of cash down the generations, or the ‘sandwich generation’ arrangement observed in recent years, but also shows flows of money and advice, up and down the generations as well as between siblings. The costs of living and care for the elderly are recognised as rising, and the report suggests that the traditional family unit is shifting – yet family ties will be stronger than ever, and people will rely much more on financial networks. By 2029, there will be more cohabiting couples, and more single-person households than married couples living together1 – so the Financial Family will be important even after the traditional family has declined. The Financial Family was identified using new survey research2, which assessed the response to attitudinal statements in the Financial Family index3. Key findings include:
Young people are more engaged with the Financial Family, with 50% of 16-24s identified as members of a Financial Family, compared to 30% of 25-34s and 20% of 35-44s. As this generation grows up, the Financial Family will become more and more widespread. Technology will also mean that people are better equipped to share financial advice – but will also make it more important they do so. As the amount of information that tries to reach consumers increases, people will rely on the insights of their financial network to process this mass of information. Barry Clark, Associate Director at the Future Foundation said: “We feel we’ve revealed a new way for people to look at British family life – and one that will become increasingly common. When we look at several demographic trends, like the rise of single-person households, the advance of technology and young people’s involvement in financial matters, we can expect the Financial Family to be a very important feature in the future. The Financial Family is here to stay.” Tim Mack, Savings Spokesman at NS&I, said: “We started from an intuitive feeling that discussing money isn’t taboo any more, but the results far exceeded our expectations. The research shows that the discussion of finances, and our relationship with money, extends beyond the traditional family.” Ends Notes to editors
The financial family index. The report analysed membership of the Financial Family by the ‘Financial Family index’. This measured responses to a series of attitudinal statements around financial networks:
The Financial Family was measured using the index of 7 attitudinal statements shown above. Respondents were asked to agree strongly, agree, neither agree nor disagree, disagree or disagree strongly. Those who agreed strongly with a statement scored 2 points. Those who neither agreed nor disagreed scored 0, those who disagreed strongly scored –2 points. Straightforward agreement or disagreement scored 1 point positive or negative respectively. Respondents’ answers were measured on a scale that goes from –14 (disagreeing strongly with all of these, including that one’s own financial security is important) to +14 (those who agreed strongly with every statement). Those who scored more than plus 4 were identified as members of the Financial Family group. Membership of the Financial Family by age group:
Using projected social trends, the report argues that the younger generations’ involvement with the Financial Family, the prevalence of the phenomenon will increase by 2029, and ultimately supersede traditional family relationships.
About NS&I NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments products, including Premium Bonds, Savings Certificates, and ISAs to almost 27 million customers. Established in 1861. For further information, or to speak to one of our spokespeople, please contact the NS&I media team.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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