Gen Z “more open” to family financial advice

Gen Z “more open” to family financial advice

Financial conversations are back on the table with couples and families leaning on each other for advice according to new research from M&G Wealth.

The Family Wealth Unlocked report reveals a growing number of couples (16%) are choosing to speak more openly to their partners, and children (14%) to their parents about financial issues with younger generations at the forefront of opening the conversation up. According to the research, 28% of Generation Z and almost a fifth, 18%, of Millennials are consulting their parents on all things finance.

As finances continue to weigh heavy on everyone’s mind, the importance of talking to a financial adviser is evidenced by the report with 45% seeking their help with managing finances. Over the last five years, over half (57%) of those surveyed have spoken to the same adviser about financial matters as their parents or children.

The report also highlighted a growing trend among UK residents, for digital financial advice. Almost a third (28%) stated they would turn to financial influencers as a source of financial advice and 22% refer to websites and a quarter (25%) use search engine.

Factors such as the rising cost of living, inflation increases, and the pandemic’s push towards reliance on the digital world, have changed how the public approaches their money. Taking in as many sources of information is allowing the nation to compare options and have a broader, more informed view of how their money is being managed, to ensure maximum protection and efficiency for themselves and their families.

Cat McInally, ESG investment expert at M&G Wealth, said:

“Attitudes towards money management are changing prompting more conversations to happen, especially between families on the future of their finances. With the increased cost of living, there has never been a more crucial time to get support and plan financially for the weeks, months and years ahead.

The growth in digital resources have really helped open up the availability of information and discussion around financial planning and social media can be a great source of information as long as you verify the content.

Comfortingly, with over a third (36%) using the same financial adviser as their parents and grandparents many are also gaining professional assistance. They’ve gone on to say that this is because it would ensure the family is aware of each other’s financial situation.

Many of the families we spoke to are also investing in each other’s financial futures, with over a third (36%) using the same financial adviser as their parents and grandparents.

The fact that people are taking steps to not only get their own finances in order, but also those of their family members is heartening to see, especially amid all the economic uncertainty.”

A full version of M&G Wealth’s new Family Wealth Unlocked report can be found on pruadviser.co.uk.

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