Years ago, I heard a hilarious song written and performed by the comedic troupe Fabulous Aida which has stayed with me ever since.
The chorus goes: “Mama, don’t spend my inheritance / Papa oh, why can’t you see / If you both keep on the way you are / There’ll be nothing left in the cookie jar / Oh, please, save something for me.”
The rest of the lyrics are a riot. The narrator warbles about her parents, 79 a piece, and their very adventurous (and expensive) retirement. She estimates they’ve been around the world 17 times, taken a salsa course in Rio, flown to Nice to eat shellfish and gone from Maine to Montana in a Winnebago.
While she admits that “their sense of purpose and energy really has to be admired”, she fears that their exploits are emptying out her inheritance pot and even demands: “If I’m going to get the money anyhow / Why can’t I have some now?”
That brilliant song swam into my mind when I read a recent survey revealing that two in five millennials fear their parents are frittering away their inheritance.
According to the research, carried out by investment platform Moneyfarm, almost a fifth of young people surveyed said their “spendthrift” parents are selfish and fail to consider their children’s or grandchildren’s economic wellbeing. Some 20pc admitted to arguing about their future finances with their parents.
Yikes. The survey makes for grim reading and, let’s be clear, it’s not a good look. Begrudging a parent – who has already made many sacrifices to bring you up – an enjoyable old age comes across as the worst kind of stingy, self-centred ingratitude. And yet I can understand the sentiment.
The difference between my parents’ and their friends’ quality of life and that of my friends and I is difficult to ignore. My generation is facing brutal economic headwinds that my parents’ generation simply did not have to tackle – sky-high mortgages and record-breaking rents, a housing crisis where the average property costs nine times the average salary (more in London), stagnating wages, an unstable job market and student loan repayments.
The millennials I know do not relish requiring handouts from their parents to progress through the usual milestones of adulthood such as buying their first home.
The tension between the generations boils down to this – baby boomers have enjoyed an unprecedented window of opportunity to build some serious wealth and that window has been slammed shut in the face of their children and grandchildren. It’s only right, in my opinion, that members of that supremely fortunate generation pass some of that luck on, if they are in a position to do so.
I say this as a beneficiary of baby boomer generosity. My parents helped me buy a flat in south-east London, the deal being that this sizable injection of cash towards my deposit was my inheritance-in-advance. I am so grateful for this gift and, as a result, I don’t gnash my teeth when my mother tells me about her holiday to Costa Rica.
But I can understand why a millennial, facing a future of shuffling from one house share to another, may resent listening to their parents – on their triple lock pensions – describe their upcoming round-the-world cruise.
However, in my experience, most baby boomers are bitterly aware of the financial pressures their children are labouring under and are doing what they can to make life easier for them. In the same survey, 60pc of over-65s said they were scrimping to save for their children and grandchildren.
While I have heard friends moan about their parents’ free-and-easy way with money, far more frequently I hear about how their parents are helping them financially, whether that’s paying for nursery or helping them climb the property ladder.
I suspect this intergenerational clash will fade away, replaced by another wealth gap conflict that seems even more unjust – between the millennials lucky enough to inherit and those who will not.
In the meantime, baby boomers, do what you can to help your impoverished descendants. And millennials, don’t begrudge your aged mum and dad a holiday or two.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
