Wednesday June 10, 2009, 3:56 pm

The global financial crisis is driving a wedge through families, with many parents no longer willing or able to provide for their adult children, a study shows.

St George Bank research shows Generation Y expects parents to help pay for weddings, house deposits and education fees, but concerns over retirement and debt have taken priority for most mums and dads.

A study of 1,000 Australians commissioned by St George showed 70 per cent of baby boomers believe the global financial crisis has seen their assets shrink in value, and 71 per cent are now concerned about their financial health.

As a result, just six per cent of parents rate providing financial assistance to their adult offspring as a top priority.

Almost half of those parents with adult children said they were focussed on saving, either for retirement (25 per cent) or other future expenses (24 per cent).

Another 41 per cent favoured paying off debt, either their credit card (24 per cent) or mortgage (17 per cent), the survey showed.

Most parents want to help their adult children, but the global recession had made it increasingly difficult, St George’s general manager of retail bank distribution Andrew Moore said.

“Circumstances have changed for many and it’s understandable that parents are now having to focus on their own needs and financial health to manage their way through the tough economic climate, particularly as we don’t know when it will end,” he said.

“As a result, when it comes to paying for things like weddings, first home deposits, overseas travel and childcare, many Gen Ys must now stand on their own two feet.”

Most parents said they wished their children were more responsible with their money, and had urged them to save more.

Almost one quarter of Gen Y respondents said they had never had to budget or save money before, while a further 35 per cent said they had only saved for short periods for one-off items like holidays.