It’s amazing how life changes and how quickly it changes too – particularly when it comes to family finances. The Aviva Family Finances Report looks at the contrasting fortunes of different family types, and has been examining data about their financial situations since 2011.
You don’t have to be Dick Whittington to see your fortune change: over a period of time, life’s ups and downs and natural turns will see money come and money go. But there are external factors too, that make a huge difference to the pennies we have in our pocket these days.
• Here in the UK, for example, did you know that the average full-time weekly wage has increased from £47.70 (back in 1974), to more than £500 in 2014?
• Watch this short video – Family Finances Report Summary
The Aviva Family Finances Report
Facts like those make us all stop and think about the value of what we’re earning, how we’re spending it, and what’s important in life. And it’s that ‘reality check’ that’s one of the key reasons we created the Aviva Family Finances Report.
Twice a year, we look at six typical family types and ask them how things are changing: what their views are on savings, money, work and life in general.
From income to expenditure, housing to employment, family structure to family borrowing (and with a spotlight in each issue, providing an in-depth look at one aspect of their lives), we believe it’s one of the most pertinent, detailed financial insights about a realistic cross-segment of the population today.
Six family types
We explore the contrasting fortunes of six ‘typical’ families, using government data and customer profiles to shape those segments. We look at people who are:
• in a committed relationship with no plans to have children
• in a committed relationship with plans to have children
• in a committed relationship with one child
• in a committed relationship with two or more children
• divorced/separated/widowed with one or more children
• or living as a single parent raising one or more children alone
Then we publish the results for general consumption, and also use them to help us gain a better understanding of our customers and their needs.
The changing face of family finances
As an example, in the latest edition, we confirmed there’s a stark contrast between the 1970s, when nearly 2/3rds of mums with pre-school children were full time mums, and today, where almost exactly the same number of mums are now combining that care with work commitments.
We believe that could explain why more and more parents (around half, according to this July’s Report), can now put savings into children’s accounts – compared with fewer than 25%, two generations’ ago.
This summer’s edition of the Aviva Family Finances Report is full of positive news for the finances of most UK families: the broader economic improvements are trickling down to UK residents.
However, it also colours in a rapidly changing portfolio of family portraits with details of more women being at work; more families relying on two incomes; and more families come up with their own ways to cope with the work/life balance.
Change is inevitable, and taking careful steps can often put families in a stronger position to manage that change. The Aviva Family Finances Report can help us all understand those changes as they’re happening, and we look forward to hearing your comments.
The Aviva Family Finances Report
Data for The Aviva Family Finances Report was sourced from the Aviva Family Index, using responses from over 22,000 people via Canadean research. This report looks at not only personal wealth, income sources and expenditure patterns but also tracks how these change across the different types of family unit.
In each edition, Aviva highlights a different topic. This issue has a focus on the lifestyles and working habits of UK families across different generations over the last 50 years. This ‘spotlight’ section uses data compiled from interviews of parents who had their first child between 1965 and 2014, comparing attitudes of 1,103 parents of Generation X (born 1965-1980); Generation Y (born 1981-2000) and Generation Z (2001-2014).