How to help your family financially

By TP Financial Solutions

05 May 2023

TP Financial April 2022 LOW RES -26.jpg.jpg

New research from Quilter* has found that over a third (37 per cent) of those aged 18 to 34 either have, or think they will need to, ask for financial help to deal with the current cost-of-living crisis.

And perhaps surprisingly – rather than 20-and-30-somethings going online, or seeking help from famous TV personalities such as Martin Lewis – research suggests that younger generations are most likely to turn to family members for guidance in their financial decisions.

For Generation Z (18-24-year-olds), family was by far the most popular option to ask for help, with four in ten (39 per cent) saying they turned to this source compared to just 26 per cent putting their trust in TV experts. Even 25-34-year-olds were more likely to use family members over any other source, with 44 per cent choosing this option.

As well as giving younger family members guidance, where older generations are not under as much financial pressure during the cost of living crisis, there may be an opportunity for them to help provide financial help to younger generations in need of a savings boost.

Older generations seem open to the idea, with 59 per cent of those aged 55 plus believing that it is important to provide financial gifts to loved ones, and 29 per cent of respondents believing it to be very important.

What financial support can you give to loved ones?

There are several options available that can be particularly useful if you are keen to provide for your loved ones. For example, any gifts you make – as long as they are made at least seven years before you pass away – are tax free, and you have a tax-free gift allowance of £3,000 per year**.

As a couple, you can combine these allowances to give you £6,000, and it’s worth remembering that it is possible to use unused allowances from a previous year too. You can give these gifts or money to one person or split the allowance between several people.

Additionally, the small gifts allowance means you can give as many gifts of up to £250 per person as you want each tax year, as long as you have not used another allowance on the same person. You are also free to make additional payments that are not liable for inheritance tax if they are regular and use excess income.

Where somebody is getting married or starting a civil partnership, you can give a tax-free wedding gift of up to £5,000 to a child, £2,500 to a grandchild or great-grandchild, and £1,000 to any other person each tax year.

Alternatively, if you would prefer your loved ones receive the financial support in the future, you may wish to consider making contributions to a child’s or grandchild’s pension pot or placing the money into a trust. For example, minors’ pensions can receive contributions up to a maximum of £3,600 per tax year with no tax penalties.

Financial advice can help the whole family

As highlighted by the research, families play a vital role in providing financial knowledge and security. Younger generations’ habits are often formed by what their parents did and as such it is natural they want to seek their advice on financial matters.

Working with a financial adviser and planning finances across multiple generations is a great way to build on that knowledge and ensure the family unit can work together for each other and themselves. As well as ensuring everyone is getting the right advice, financial advice can help ensure tax allowances are being used effectively across family members.

Everyone’s financial future is unique to them and as such engaging with a financial professional will enable you to create a tailored and individual financial plan that is specific to your circumstances. With people’s finances becoming increasingly complex, particularly when looking across generations, financial advice is crucial to ensure your money works as hard as it can.

*Research completed via YouGov in November 2022 with 2176 adults. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2176 adults. Fieldwork was undertaken between 9 - 15 November 2022.  The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

** All figures quoted in this article relate to the 2022/2023 tax year and may be subject to change in the future.

Latest news

1

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

2

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

3

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

4

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

5

Napthens makes key appointments to further growth strategy of newly appointed managing director Napthens appointments Jayna Mistry, Onyeka-Obedi and Rebecca Rhodes

Napthens makes key appointments to further growth strategy of newly appointed managing director

09 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking
Sub36 Social1200pxandi Lewis
Networking
11 Jun 2025

Sub36 Networking

Mytton Fold Hotel , Blackburn , BB6 8AB

09:30 - 11:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin