Things to consider first

Q Should I release equity on my own property to give to family?

A If you are over 55, you could take out a loan on your property as a tax-free lump sum – perhaps for a loved one to use as a deposit. ‘However, this should be approached with caution, considering the potential reduction in property value and the impact on the parent or grandparent’s financial stability,’ says Rosie Hooper. ‘Anyone considering this must get professional advice surrounding whether this is a sensible option.’

Q How will giving money affect my own financial future?

A For today’s young adults, long-term financial planning looks very different to that of their parents. Reaching key financial milestones, such as buying a house, involves a much longer wait than for previous generations. While it’s natural for parents to want to help, the right balance needs to be struck. ‘Dipping into your own pension pot and withdrawing funds early can have a dramatic impact on your overall retirement,’ says Clare Moffat, pensions expert at Royal London. ‘It can also make it harder to build a pension pot back up in future.’

Ali Poulton, head financial coach at Octopus Money, says: ‘Money is finite. Before you give yours to someone else, you need to understand whether you have it to give. Yes, it might be sitting in your bank account right now, earning a little bit of interest, but think longer term. Do you have a plan for it later that you need it for? Will it affect the priorities in your life?’

Q I’m sharing my home with grown-up children – should they contribute financially?

A ‘Many people support family members, but it can become a financial burden and a source of tension. Create a plan together with a start and an end date, if you’d like one. Agree what household bills they will contribute to and how much. If they’re struggling, there may be jobs they’re really good at that you usually pay someone else for, such as redecorating,’ says Jackie Spencer, policy lead at the Money and Pensions Service.