Family and friends give each other hundreds of pounds a year in financial help

The survey of more than 8,000 adults by insurer Aviva found that almost a third of families are providing financial support to their extended family and friends.

The amount each family gives to extended family members or friends is on average £442 a year.

The main reasons families cited for helping were a change in financial circumstances or to help friends and family meet one-off expenses.

In addition, families are also providing practical support to friends, with over a fifth helping with cooking, cleaning or babysitting to save them money.

However, one in seven families who provide support say they have had to make cut-backs in the last few years so they can continue to provide assistance.

Families surveyed said that providing financial support was a barrier to saving (46 per cent), repaying debts (24 per cent) putting money aside for their children (14 per cent) and paying into a pension (11 per cent).

An increased number of families also admitted that they are spending less money on luxuries including ‘personal goods’, entertainment, holidays and leisure.

Aviva’s quarterly ‘Family Finances’ report also revealed that the typical monthly net income of a UK family is now £1,983, a two per cent drop on the previous quarter’s figures.

As well as this, the number of families who survive on less than £1,250 per month has increased.

Paul Goodwin, director of workplace savings at Aviva, said, ‘In the current economic climate, families are clearly willing to support members of their extended network of family and friends. However, while it’s good to see how families are pulling together, people need to ensure that they are not sacrificing their own financial wellbeing, particularly in the longterm.’