"No matter their family set-up, people should feel empowered and informed when it comes to managing their money."
- Paula Llewellyn, Chief Marketing Officer & Managing Director at L&G Retail
Of those surveyed (2,000), 26% of blended families were more likely to have purchased protection when they remarried and re-evaluated their finances, and over twice (56%) as likely to have taken out protection when they became a step-parent.
However, while blended families might be more likely to have protection in place, starting over and building a new household still has a significant impact on their finances. L&G found that parents of blended families are 35% less likely to have a ‘rainy-day fund’ in place and are 61% less likely to regularly put money into savings and investments.
Notably, one in five parents of blended families said the end of their previous relationship had a direct impact on no longer having savings. This can lead parents to worry about their security, with half of all blended families concerned for their financial future (45%).
Discussing personal experience, one step-parent said: “When I moved in with my husband, we each had a son from a previous relationship, and then had two more sons together. As you can imagine, with four boys in and out of the household, money can be tight at time.
“We have to be really mindful with budgeting to keep things fair, especially as the kids are so competitive. My step-son lives most of the time with his mum, so we make an effort to spend as equally as we can across all the kids, but it takes some planning.
“One of my sons is autistic, and I had to stop working to become his full-time carer, meaning we’re currently relying on a single income. However, we’re always thinking about the future, especially after our experiences of breaking up with previous partners, so we’ve built up a significant ‘rainy-day’ fund and do our best to ensure there’s money put aside to treat the kids to days out.”
Paula Llewellyn, Chief Marketing Officer & Managing Director at L&G Retail, said “Creating a new family structure is often a wonderful, happy time but can also bring challenges. Families are often trying to find a new way that works for them, and how you manage your money is just one part of that.”
She believes it’s “not always easy, from figuring out how financial support for children is split with parents who might be outside the home, to agreeing how expenses are paid for with your new partner but it’s all part and parcel of the next big adventure.”
“It’s important that our industry understand and embrace the changing needs of families, making sure that appropriate products and services are available. The route to family building isn’t ‘one size fits all’, and we need to adapt and ensure products are flexible, and customers understand their options,” she concluded.
