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4 financial benefits of multigenerational living

4 financial benefits of multigenerational living
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Research from Legal & General shows that more than 50% of UK residents believe that the number of multi-generational homes will grow over the next decade. The survey, which included more than 1,000 UK residents, shows that multigenerational living is becoming more and more common.

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Having several generations under one roof is common in countries like Italy and Spain. And the UK – where kids leaving home once they reach college age has traditionally been the norm – is now catching up, according to recent statistics.

Of the people surveyed, 49% agreed that multigenerational living has many benefits.

Why is multigenerational living on the rise?

The Legal & General research shows that multigenerational living has many benefits, including significant financial benefits.

In fact, 57% of those surveyed believe there is a positive financial impact to sharing a home. Of those surveyed, 31% said finances were part of the reason they were living in a multigenerational household. An additional 16% said that finances were the primary reason.

Let’s take a look at some of the key benefits of multigenerational living.

1. Shared financial responsibility

It seems obvious but the actual savings might be bigger than you expect. Simple things like sharing meals, and cutting down to just one car for the entire household can save significant amounts of money.

2. Childcare costs go down

The Legal & General research shows that 49% of those sharing a home cite help with childcare as a major benefit. And while you can’t expect grandparents to take over childcare all the time, even occasional help can reduce costs significantly.

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3. Contribution to bills

In multigenerational living costs of utilities like gas, electricity and internet services can be shared. Household utilities don’t necessarily double when you double the number of people in a home and neither do other expenses.

If costs are split, running the household suddenly becomes a lot cheaper for everybody. According to Legal & General, 55% of those surveyed felt splitting bills is one of the biggest benefits of multigenerational living. 

4. Lower or no elderly-care costs

Sharing a home with senior family members can do wonders for strengthening family bonds. It can also be a much more affordable option than an assisted living facility, or a care home. Both the ageing adults and the younger members of the family can benefit financially by avoiding these costs.

Other benefits of multigenerational living 

The Legal & General research also looked into non-financial benefits of multigenerational living and found that there are many. For example, 68% of respondents cited a closer family bond as an important benefit of sharing a roof.

Benefits also include more trust in family, better family communication and the sharing of intergenerational knowledge. The elderly share their experiences with the young, and the young keep the elderly up to date in the ever-changing modern world.

More than half of the respondents (58%) mentioned help with household tasks as an added benefit. Although this doesn’t necessarily fall under a financial benefit, it could easily turn into one as well.

Having help from loved ones to do things around the house might mean not having to rely on professionals to get things done. In the long run, this can end up saving time and money for everybody involved. 

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