The Six Types of Modern Family and Their Finances

ALL Family MODERN FAMILIES AND FINANCES IN THE UK In the UK, 84 per cent of Britons live as part of a family. How are families faring? We break down the structure, income, debts, and outlook of modern families in the UK. THE CHANGING FACE OF FAMILY The idea of the "nuclear family" with two parents and one or more children is no more. Society has evolved in such a way that there are now several common types of modern families. Here are the six most common family types. ............................. ............................. .............................. ............................. Couples in a Couples in a Couples in a Single parents Couples in a committed relationship with two or more children Divorced, separated, or widowed adults committed committed committed relationship with plans to have children raising one or more children alone relationship with relationship with no plans to have children one child with one or more children THE TYPICAL FAMILY'S INCOME The typical monthly net income of a family in the UK is now £2,066 – a 7 per cent increase on last year. Couples without children are driving this increase. AVERAGE MONTHLY NET INCOME INCREASE IN MONTHLY NET INCOME (JANUARY 2011 - JANUARY 2012) £1,937 £2,066 January 2011 +7% +10% +11% January 2012 Typical family Couples in a Couples in a committed committed relationship with no plans to have children relationship who plan to have children MOST COMMON SOURCES OF FAMILY INCOME Salary from primary income earner 69% Income from spousal earnings 33% Benefits 22% Earnings from part-time or second jobs 18% THE TYPICAL FAMILY'S EXPENDITURE AVERAGE AMOUNT SPENT AS PERCENTAGE OF MONTHLY INCOME 20% 10% 5% 5% 4% 4% 2% 1% Housing (mortgage or rent) Debt repayment Energy bills Motoring Entertain- ment, recreation, and holidays other travel Clothing and footwear Food Nursery or out of Public Fees for transport children's school care fares and activities costs FAMILIES CUTTING BACK 22% say they don't spend money on personal goods. 30% say they don't spend money on entertainment, recreation, or holidays. 42% say they have cut out leisure goods spending completely. I LOVE SHOPPING ADMIT THE TYPICAL FAMILY'S WEALTH Family homes are typically more expensive than the average residence because they're usually larger. Single parents and adults who are divorced, separated, or widowed typically have lower-value homes. HOUSING WEALTH: AVERAGE VALUE OF HOUSE PER FAMILY TYPE Couples with no plans to have children £224,821 Couples with plans to have children £208,892 Couples with one child £190,830 Couples with two or more children £238,364 Divorced/separated/widowed with one or more children £198,387 Single parents with one or more children £176,276 Average residential property £163,822 THE TYPICAL FAMILY'S BORROWING The typical UK family currently owes £7,944 – 32 per cent of the typical annual household income of £24,792. This is up significantly from last year. TYPICAL FAMILY'S DEBT £5,360 DEB £7,944 124 SA78 101 1121 January 2011 £2,314 in credit card debt £1,739 in personal loans £775 in overdrafts January 2012 THE TYPICAL FAMILY'S FUTURE For the most part, the typical family is setting money aside each month-preparing for retirement or in case of an emergency. Roughly 3 in 5 families worry most about an increase in the cost of food and energy. MOST UK FAMILIES PREPARE SOME FAMILIES DON'T FOR THE FUTURE |42% of all families don't save each month. 30% 70% 59% Families Families with no with of single parents don't save each month. savings savings 61% of divorced, separated, or widowed adults don't save each month. TOP THREE FEARS FOR FAMILIES 1. A significant increase in the price of basic necessities 2. Losing a job 3. Unexpected expenses THE TYPICAL FAMILY'S FINANCIAL PRIORITIES Families are likely to attach more importance to protecting electrical goods and gadgets than their own health and the financial wellbeing of their dependents. FAMILIES IN POSSESSION OF CERTAIN PRODUCTS/SERVICES Home computer 86% Home internet access 86% Satellite TV package 50% Life insurance 40% A will 32% 17% Pet insurance Mobile phone insurance 14% Critical illness insurance 13% Extended warranty on electrical items 13% Income protection insurance 10% Extended warranty on car 5% SOURCE: THE AVIVA FAMILY FINANCES REPORT JANUARY 2012 Confused.com