Women Torn Between Financial Independence and Helping Children

February 16, 2012 (PLANSPONSOR.com) - While women across generations are willing and eager to provide financial support to their family members, they are also placing a strong emphasis on self-reliance, according to a MetLife Mature Market Institute study.

“Women’s Views on Family Financial Obligations: A MetLife Survey of Intergenerational Findings of Baby Boomers and Generations X and Y” found that across generations, women strongly agree that they need to prepare for retirement to avoid depending on family members later in life—89% of Boomers (b. 1946–64), 88% of Gen Xers (b. 1965–1976) and 84% of Gen Yers (b. 1977–1990). However, another tendency that appears to be universal among the women surveyed (almost eight in 10 across all generations) is the desire to be able to give more financially to children or grandchildren.  

Boomers place a strong focus on self-reliance and are more likely to report that they are financially secure than the other generations (60% vs. 47% of Gen Xers and 50% of Gen Yers). If given the choice between spending money to enjoy retirement versus saving with the intent to leave an inheritance, both Boomers (73%) and Gen Xers (69%) were more likely than Gen Yers (54%) to agree with the retiree who is giving small gifts to her children, but is more focused on enjoying retirement.   

Approximately half of the women overall feel they have a strong or absolute responsibility to provide financial support for their children’s education; however Gen Yers were significantly more likely to do so, as reported by 57% of women (compared to 51% of Gen Xers and 45% of Boomers).  

The strong desire to help children financially doesn’t necessarily extend to the grandparent-grandchild relationship. Only 8% of Boomer women feel a responsibility to support a grandchild’s education. However, the feeling of responsibility for grandchildren’s education is on the rise—15% of Gen Yers and 13% of Gen Xers say that providing support for grandchildren’s education is a responsibility.   

As women get older, they indicate they've contributed significantly to their children and that the time has come to focus on their own needs for both enjoyment and independence.  

Respondents’ emphasis on self-reliance extends to their reluctance to accept financial help from their children. In times of financial difficulty, an equal percentage of women across all generations would give financial help to parents and/or in-laws, but 45% of Boomers say they wouldn’t accept financial help from their adult children, even if they needed it.