SOLVING FINANCIAL ENMESHMENT FOR A RESILIENT SOCIETY

Balancing family support with individual autonomy helps promote sound financial health

- Hardeep Singh Mundi & Simarjeet Singh

In India, family is often seen as the core unit of social and financial security, pooling resources to meet collective financial needs. While this strengthens family bonds, it can also cause financial enmeshment, where the lines between individual and family finances become blurred. Financial enmeshment can lead to a lack of autonomy and strain financial relationships across generations.

Understanding financial enmeshment Historically, India's joint family system fostered financial interdependence. However, as modern families shift towards nuclear structures, these traditional expectations persist, creating tension between collective and individual financial goals. Financial enmeshment is particularly evident during key life transitions, such as when young adults begin earning or middle-aged individuals start supporting both children and parents. Financial enmeshment can limit young adults' ability to make independent decisions; Instead, their priorities are often dictated by the family's immediate needs.