Life matters: Heidi Armstrong

As households evolve, there are big benefits in living with family

Family units look very different in today’s society. Gone are the days where practically every household had a patriarchal structure with a male breadwinner and female homemaker.

Now it’s not uncommon to have two working parents, a single-parent household or even a stay-at-home dad. Certainly these cultural changes have had a direct impact on our lives, including our finances.

With household debt increasing while wage growth remains at record lows, families need to do everything they can to stay afloat. For many parents this means working longer hours or taking on a second job.

Earning more to battle the rising cost of living is one solution. However, it’s not always practical, particularly as underemployment continues to be a challenge. Consequently we’re now seeing a shift towards living situations similar to those in collectivist cultures where family members work together to achieve their goals. An extended family buying property is a great example of this in action.

Indeed, with house and rental prices so high, many families can no longer afford to operate alone. According to the latest census data, there has been a surge in households consisting of five or more people. While not all of these are multi-generational households, it certainly indicates that a greater number of parents, kids and grandparents now live under the one roof.

Pay together, stay together

New information from the Household, Income and Labour Dynamics in Australia (HILDA) report confirms that raising a family is becoming more expensive than ever with childcare costs, for example, up by 75% for couples and doubling for single parents since 2002.

While there are undoubtedly pitfalls to living with your extended family, when it comes to financial arrangements generally the pros outweigh the cons. And not just with childcare.

With energy rates having increased from July 1, households are set to pay up to 20% more per year. That’s an additional $600 for the average customer, representing a huge increase for families already facing serious financial pressures. Splitting these bills as a family could be one way to ease the pain.

Buying in bulk is another smart way that multi-generational families can save. While these savings might seem small, they could be the difference between home ownership and renting for adult children and could seriously reduce the financial pressures for parents and grandparents.

Homes to suit households

As our households change, so too must our homes. The rise of multi-generational living is beginning to alter the way we build.

Architects are responding to the needs of this market by designing homes that tackle the cons associated with multi-genera- tional living. Some of their design features include homes with increased privacy, separate living spaces and adaptability to accommodate more or fewer people.

Genliving and Sekisui House, for example, offer custom-built homes for multiple generations. But other more price-effective solutions, such as granny flats or the tiny house movement, also exist to make these arrangements work.

Personal benefits

Apart from the obvious financial benefits, living as a family can also provide each member with an opportunity for greater personal and emotional support. Whether this comes in the form of assistance with child rearing or adult children helping their own parents, having more hands on deck can only be a positive thing.

While our family structures are changing all the time, the one thing that still stands is the power of unity. If we want to be successful, both financially and in our personal lives, teamwork is key and there’s no greater team than family.

Heidi Armstrong is finance expert for Money to Love, a TV and radio presenter and a thought leadership award winner.

The family can provide more personal and financial support