The risks of borrowing from the bank of mum and dad
Research from the University of Newcastle highlights the legal and social risks associated with the 'bank of mum and dad' phenomenon in Australia. While often used for home deposits, the trend is shifting toward covering daily living expenses amid a cost-of-living crisis.
Why it matters
It underscores the growing reliance on intergenerational wealth transfers to manage economic hardship and housing affordability.
Having conversations about money can feel hard, but being clear about the terms of a family loan is important, experts warn. ( Pexels: Danik Prihodko )
Link copied Share Share article With the Australian dream of owning a home becoming increasingly out of reach for young Australians, the bank of mum and dad is an option many turn to.
It's not just for buying property, with families frequently lending money to help with everyday expenses amid the cost-of-living crisis.
But youth sociologist and senior lecturer at the University of Newcastle Julia Cook says there are legal risks when borrowing from family, and the taboo of talking about money is at the heart of many.
In short, it's a term for the financial support that parents give to their adult children.
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