Government revamps Help to Buy with a new plan aimed at first-time buyers who have no 'Bank of Mum and Dad'

Nearly one in four parents are counting on financial help from their parents or grandparents to afford the rising costs of raising children, according to a new BMO Real Financial Progress Index. The index found that 37% of American parents expect to receive some sort of financial assistance from their own parents or grandparents over the next year, as the cost of raising children continues to put pressure on household budgets across the nation.

BMO's findings show that 82% of parents say the cost of raising children has "gotten out of control," while 86% note that everyday expenses like daycare, after-school programs, summer camps, and school supplies are making it harder to save for their children's futures. Over three quarters of parents consider financial support from extended family essential for affording opportunities for their children.

For these parents, the role of baby boomers isn't just limited to writing checks. Among the parents expecting assistance, 43% rely on grandparents for childcare, while 26% said family members would help fund their children's futures through a 529 plan or another savings account. This trend of turning to older relatives for help reflects a broader shift in how American families are managing an affordability squeeze, as opposed to waiting for the so-called Great Wealth Transfer.

The mental health toll of caregiving has also increased, with about 80% of parents spending almost every waking hour focused on someone other than themselves. This has led to a 5% rise in parents who have considered suicide or self-harm. Brad Wilson, CEO of Care.com, stated that parents are being pushed "well beyond their limits by the demands of caregiving."