In a society where the generational divide is often discussed in terms of technological savvy or cultural touchstones, a new trend is highlighting a more financial aspect of the gap between older and newer generations.

It's called SKI, or 'Spending Kids' Inheritance', and it's a movement that's gaining traction among older Australians, much to the chagrin of some in the younger generations.

The concept of SKI is straightforward: rather than saving and scrimping to leave an inheritance for their children, an increasing number of older generations are choosing to spend their hard-earned money on themselves.

This could mean travelling the world, indulging in hobbies, or simply enjoying a comfortable retirement without concern for what's left behind.

This trend, which some might label ‘selfish’, is sparking heated debates across family dinner tables and online. But is it as straightforward as it seems?

Older generations are spending their hard-earned money on themselves with the latest trend. Credit: Shutterstock

Trudy Wertheim, a single mum in her 50s, subscribes to the SKI philosophy. After years of hard work and dedication to supporting her family, she's looking forward to her retirement.

She believed that her children, now in their 30s, were supportive of her decision to use her savings for her happiness.

‘There is a whole generation of kids being raised, who perhaps their carers didn’t instil in them from an early age, that if you do work hard, you can have everything you want out of life and more,’ she said.

‘There are generations coming through that just don’t expect to work. They expect to inherit or be given or bought a family home by their parents.’

‘They’ve never said to me, “We expect you to not spend your hard-earned savings because that’s ours,”’ she said.

‘Never has that come out of their mouth. My children have said to me, “Go and live your life. Do what you want to do. We just want you to be happy mum”.’

She's instilled a strong work ethic in her children, and they've expressed that they want nothing more than for their mum to live her life to the fullest.

The SKI movement raises important questions about the expectations of inheritance and the responsibilities of parents towards their adult children.

Some parents help their children financially while still alive, perhaps contributing towards education or a house deposit.

However, as Wertheim pointed out, this can lead to its own set of complications, especially when trying to be fair to all children, regardless of their circumstances.

The debate is further complicated by the stark reality facing many young Australians today.

According to a 2020 report from the Australian Housing and Urban Research Institute, ‘almost half’ of young Australians may not own property by the age of 54.

With house prices soaring and the rental market becoming increasingly unaffordable, many people's dream of homeownership is slipping away.

In the 1980s, older generations were entering the housing market at a time when the average wage was around $13,458, and the median house price was 2.9 times that amount.

Today, the average wage in Australia is $98,000 a year, with median house prices in Sydney and Melbourne reaching upwards of 10 times this figure.

While slightly more affordable in other capital cities, the disparity between income and housing costs remains a significant hurdle.

Supporters of the SKI movement argue that they've earned the right to spend their money as they see fit, and that younger generations should not feel entitled to an inheritance.

‘My kids are happy for me to spend it. They can have our house, which is more than I got when my parents passed away,’ wrote one.

‘They earned it, and they can spend it. So many entitled people,’ said another.

A third added: ‘The kids inherit your house. Your money is your business to spend how you like.’

Key Takeaways

• Older generations in Australia are engaging in a trend known as SKI, or 'spending kids' inheritance', to use up their savings rather than leaving an inheritance for their children.
• The SKI trend is creating controversy, with some seeing it as unfairly depriving younger generations, while others argue that it encourages a necessary shift in mindset away from dependence on inheritance.
• A single mum, Trudy Wertheim, shared her support for the SKI philosophy, emphasising that she taught her children the value of hard work and did not feel obligated to leave an inheritance.
• There is an increasing difficulty young Australians face in achieving home ownership, with current house prices being significantly disproportionate to average wages compared to several decades ago.

Where do you stand on the SKI movement? Have you embraced the trend of spending your kids' inheritance, or do you plan to leave something behind for the next generation? Share your thoughts in the comments below!

 

[millicent haha]

Whilst I am happy for others to do as they see fit with their own money, I am of the firm belief that my money is mine to spend. It doesn't matter if I worked hard for it or not, I shouldn't have to justify doing what I want with my own money...in the context of all bills paid up and fairness to partners, of course. I don't like the acronym SKI because it implies greed on the part of the spender/parent and inheritance doesn't kick in until parents die.