They say it takes a village to raise a child. These days, with continuously rising prices on everything from homes to caretaking expenses to education, with life expectancy increasing, and with notoriously off-kilter work-life balance, it can take a village to accomplish just about anything. That’s one of the main reasons why multigenerational households — households that have at least two adult generations under the same roof — have been gaining in popularity.Trends in Multigenerational LivingFor comparison, back in 1960, about a quarter of young adults aged 18-29 lived with their parents. By 2023, that number had doubled to nearly 50%, but they’re not the only adult generations living under one roof lately. Grandparents and grandchildren are also now cohabitating in the same households, brought together by financial pressures, ethnic traditions, caregiving needs, and other reasons.Real estate trends show that this arrangement is only ramping up. Research from the National Association of Realtors revealed that 17% of homes purchased in 2024 were intended to house multigenerational families. Indeed, one in four Americans now lives in a household with three or more generations. That’s 67MM people. The dynamics in these households are complex, both emotionally and financially. As multiple generations navigate major life transitions under one roof — caregiving for aging parents, supporting children or young adults, and planning for retirement — their financial lives often intertwine in unexpected ways.Each generation brings its own priorities, challenges, and expectations about money. Understanding those differences allows community financial institutions to tailor support that meets the needs of the entire family, not just one individual.
A Generational SnapshotAs these households blend finances across life stages, understanding the unique outlooks and needs of each generation becomes essential. A closer look at these generational profiles reveals where their priorities align—and where they differ most.Here’s a look at each and some of their most common financial needs:
A Generational SnapshotAs these households blend finances across life stages, understanding the unique outlooks and needs of each generation becomes essential. A closer look at these generational profiles reveals where their priorities align—and where they differ most.Here’s a look at each and some of their most common financial needs:
- Silent Generation. Born between 1921 and 1945, they are now more than 80 years old. Of those still living alone, 15% are impoverished. One of their big financial challenges is paying for long-term care.
- Baby Boomers. Now in their 60s to nearly 80, many face problematic retirement years. Half have saved less than $200K toward retirement, and 40% rely on Social Security. They may also be responsible for the care of aging parents, as well as bearing some obligations toward their own children and grandchildren.
- Gen X. The oldest members are now approaching 60. In addition to managing their own finances, they may have both dependent children and aging parents to worry about.
- Millennials. Now in their 30s and early 40s, they are in common years for major lifestyle transitions like marriage, having children, and purchasing homes. However, high housing prices have delayed many from buying, with the average first home purchase age now around 38.
- Gen Z. Some are still teenagers, and the oldest are now in their late 20s. They are entering adulthood facing high student debt, tight labor markets, and high rents; a majority of young renters report that housing costs leave little room for savings.
Financial issues underscore much of what is herding multiple generations into one household. Given their understanding of local markets and desire to build relationships with customers, CFIs are the prime option to step in, offering services and help while also generating loyalty and new business. Start With a Focus on the Middle A multigenerational household tends to have one generation in the middle that has obligations toward older and/or younger relatives. In a survey of working-age adults, both those with multiple generational households and those without, nearly seven in 10 said they would be interested in bank offerings that help manage multi-generational households. Just 38% said they had the resources to effectively plan their financial futures.One big issue is that the generation in the middle says they lack sufficient insight into the banking habits of older members of the household. This can be a problem when trying to help parents and grandparents manage their finances. Encouraging more sharing of financial information can help the process, and that might include bringing scattered accounts under one banking roof. One trend for multigenerational households is the development of Accessory Dwelling Units (ADU) where elderly family members can live within the same household. CFIs can assist in financing ADUs for eligible families. ADUs come in a variety of configurations, from detached buildings to add-ons to conversions of existing spaces. When it comes to younger family members, attention often focuses on building sound financial practices. CFIs can help with financial management classes and advice, special accounts and credit cards for younger members, guidance in consolidating and paying off debt, and assistance with developing savings plans. Multigenerational households are on the rise. A CFI with strong advisory services for multigenerational households could be in a position to attract accounts and assets that family members have scattered among other institutions, thereby gaining assets as well as new customers. By offering services designed for these types of households, CFIs can expand relationships and build customer loyalty that lasts generations.
