In an era of soaring interest rates, inflation and mounting costs, Australian families are grappling with the relentless financial pressures that have gripped the nation. As the cost of living continues to surge, families are seeking innovative ways to weather the storm. Amidst this backdrop, the concept of multi-generational living emerges as a beacon of hope, offering an array of benefits that extend far beyond financial relief.
Challenges in the face of rising costs
The Australian dream of independence has collided head-on with the economic realities of today. Families across the country are feeling the pinch of escalating interest rates, surging rents and skyrocketing expenses for essentials like food and petrol. Childcare costs, often deemed as the second mortgage, add to the burden, particularly for working mothers striving to balance professional and family responsibilities. The pressure is felt on all fronts, compelling families to explore alternative living arrangements that alleviate these financial hardships.
The effective strategies for combating challenges
As families grapple with the financial turbulence, one strategy stands out for its effectiveness in alleviating the burden: multi-generational living. This approach involves multiple generations of a family residing under the same roof, pooling resources, sharing responsibilities, and creating a supportive network that benefits all members. This living arrangement not only eases financial strain but also strengthens familial bonds and cultivates a nurturing environment.
The financial benefits of multi-generational living
Multi-generational living presents a compelling financial solution. By consolidating living spaces and sharing expenses, families can reduce the economic strain of housing costs, utility bills and groceries.
“Having another adult in the house to help share the load is priceless.”
Data from the Australian Bureau of Statistics shows that multi-generational living has been on the rise, with almost 16 per cent of the population residing in such arrangements. This trend reflects the tangible benefits that can be reaped from sharing financial responsibilities within a family unit.
The role of au pairs in multi-generational living
Au pairs, once considered a solution exclusively for nuclear families, have evolved to become a vital asset in the multi-generational living environment. Their presence provides a valuable helping hand to working parents, grandparents and other caregivers, allowing them to balance their various responsibilities effectively. Au pairs are not only eager and energetic caregivers but also cultural bridges, offering diverse perspectives that enrich the lives of every family member. In a multi-generational setting, they become a linchpin that supports the functioning of the household and fosters intergenerational connections.
Empowering women through multi-generational living
Beyond the immediate financial benefits, multi-generational living plays a crucial role in empowering women to re-enter the workforce confidently. The burden of household management and childcare responsibilities often falls disproportionately on women, limiting their ability to pursue professional aspirations. As per Household Income and Labour Dynamics in Australia [HILDA] results published late in 2021, women still shoulder more than double the hours of household work as men, despite working equal hours outside the home. A study by Deloitte found that flexible working arrangements and support from extended-family members are pivotal in enabling women to juggle career and family responsibilities successfully. Multi-generational living paves the way for more women to contribute to their family’s financial stability while pursuing their professional goals.
The village approach: benefits for children
The proverbial saying ‘It takes a village to raise a child’ remains as true as ever. Multi-generational living ensures that children are enveloped in a nurturing environment where they receive guidance, love and care from a diverse set of role models. Grandparents impart wisdom, traditions and values that span generations. The presence of extended-family members and caregivers like au pairs fosters a sense of belonging and interconnectedness, enriching a child’s upbringing. They are often the trusted mentors, big brothers and sisters that are there to have fun with. Who else would have the time and energy to jump on the trampoline for hours or immerse themselves in an imaginative game of Pokémon and beyblades?
The government’s role in fostering multi-generational living
To encourage the adoption of multi-generational living as a viable solution to rising costs, the federal and state governments can play a pivotal role. By increasing the number of available visa slots for au pairs, the government can facilitate host families’ access to skilled caregivers from countries where multi-generational living is the norm (i.e., the Philippines or India); they contribute to the smooth functioning of multi-generational households. Moreover, policies that allow flexibility in working hours for young people can help them contribute to household income while pursuing education or vocational training.
Personal stories: real-life experiences of multi-generational living
Meet Abbey, a young woman from regional Victoria who was looking for a career direction. “I wanted to live in Melbourne, close to home, and have hours that allowed me to study. Being an au pair was perfect, as I had most of the day free,” Abbey, a local GYMPY (Gap Year Mentorship Program for Youth) participant who has now enrolled in a psychology course, says.
Heather, a young teaching student, was keen to move to Melbourne from WA and experience the city from the safety of proximity to a family. She is continuing to study while nannying, now with added experience, new tools acquired, and a reference from her placement. “Being able to live with a family and learn from them for my future career, whilst not having to pay rent and bills, was great for me,” Heather, also a GYMPY participant, says.
Kate, a mother of two who works full-time as a program manager, shares her experience. “As a single mother, it is simply impossible to run a house, have a full-time job, and look after your children. Having another adult in the house to help share the load is priceless.”
Kate recalls her life prior to hosting au pairs. “I once had to leave a meeting I was chairing, mid-conversation, and race across town to pick up my daughters from childcare just in time, so I did not have to pay a $5 late fee per child, per minute.
“While I was proud that I had just made it, my children were sobbing because they were the last ones there. Only then did I realise that I still had not thought of dinner. I had to drag two hungry and tired children to the supermarket and make them the quickest dinner possible to fill their tummies.”
Scott and Nicky, a teacher and lawyer who are parents of three children, also shared their story. “Expecting our third child, we knew we needed more flexible support. I am not sure how we would have gotten through this transition without Heather. We all learned and benefited a lot,” Scott, Heather’s host dad, says.
As the financial challenges of contemporary life continue to mount, Australian families are seeking creative solutions that transcend traditional boundaries. Multi-generational living offers a compelling way forward. By embracing this alternative living arrangement and advocating for policies that support it, families can navigate the storm of rising costs with resilience, unity and a renewed sense of purpose.
This article first appeared in issue 42 of the Inside Small Business quarterly magazine
