Previous Research

Families use different types of informal exchanges to satisfy demands placed on their household or to assist others. Williams (12) found that the type and frequency of interhousehold exchanges varied for Mexican-American and Anglo families by income and ethnic group. Hoyert (6) determined that some families were more likely to receive or provide assistance with household tasks, whereas others were more likely to receive or give financial assistance.

A Bureau of the Census study indicated that those who provided financial assistance to people in other households were more likely to be separated or divorced than married or single. Men were more likely than women to provide financial assistance. Also, the lifecycle status of both the provider and recipient determined whether financial assistance was provided or received (7).

Other studies have focused on combined involuntary and voluntary support payments to individuals in other households (7), the provision and receipt of household goods and services by ethnicity and income levels (12), and household and financial assistance from parents to children (6). Still others have highlighted the influence of family background and the life cycle on interhousehold transfers (9), and the influence of racial differences on intergenerational financial flows between parents and their children (students versus nonstudents) (5).

Eggebeen and Hogan (3) determined that among people age 19 and older, those more likely to give to their parents were Mexican and male; had more education, more interaction with their parents, more living siblings, and a parent whose health status was poor; and provided coresidence to parents. Those below the poverty level were less likely than those above the poverty

level to give money to their parents. Findings of this study also indicated

that there was little reciprocity in intergenerational exchanges.

In a different study, Eggebeen (2) reported that giving advice followed by giving money and receiving advice were the most typical forms of exchange for older adults (age 55 or more). Older adults rarely received money from their adult children, and fewer elderly Black than elderly White parents gave money, household assistance, or advice to their children.

Current Research

The research reported in this article provides additional insight on interhousehold exchanges. Unlike other studies, this study examines the characteristics of individuals born between 1946 and 1964, sometimes referred to as baby boomers, who lent $200 or more over a 5-year period to, or who received loans of $200 or more from, relatives and nonrelatives in other households.

The baby-boom generation is currently in a life-cycle stage that places many demands on its members' resources. Some members are establishing households, some have child-care needs, others may be repaying college loans, some are paying or saving for their children's education, and some are helping others financially. In 1990, total expenditures of boomers (those 26 to 44 years old) for goods and services were greater, on average, than total expenditures by adults not in this age range (1).

The baby boomers have been described as members of the Sandwich Generation— a group that may need to provide assistance to children or aging parents and

make financial plans for retirement simultaneously (8). Questions addressed are: (1) At this stage of the life cycle, to what degree are baby boomers giving loans to and receiving loans from people in other households? (2) Who are the givers and who are the recipients of these interhousehold loans? (3) To whom and from whom are these interhousehold loans made? (4) For what specific purposes, if any, are loans made and received?

Source of Data and Sample

Data for this study are from the 1987-88 National Survey of Families and Households (NSFH).2 The NSFH collects data on a range of American family life issues, including couple and parent-child interactions, economic and psychological well-being, family attitudes, and adult family transitions (11). The NSFH is a national probability sample of 13,017 respondents (19 years old and older). This includes an oversampling of minority, single-parent, stepparent, recently married couple, and cohabitingcouple households. In each household, one adult was randomly selected as the primary respondent. For this study, only respondents who were householders were selected for analysis. Householders were determined by two questions: (1) "Is R [respondent] the only adult, or is R's [respondent's] spouse the only other adult age 19 or over in the household?" and (2) "In whose name is this home owned or rented?" There were 11,858 householders.

2The National Survey of Families and Households was funded by a grant (HD21009) from the Center for Population Research of the National Institute of Child Health and Human Development. The survey was designed and carried out at the Center for Demography and Ecology at the University of Wisconsin-Madison under the direction of Larry Bumpass and James Sweet. The field work was done by the Institute for Survey Research at Temple University.

In response to questions on gifts and loans, householders provided information on exchanges between their households and other households that were made over a 5-year period before the interview. (For the remainder of the paper, this is the period under discussion.) To the first in a series of questions on gifts and loans, householders indicated (1) whether they or their spouse or partner had given gifts or loans worth $200 or more to others not living in their household during the past 5 years or (2) if they had received gifts or loans worth $200 or more from people in other households during that time.

In answer to the first question about giving gifts and loans,3 householders could have included gifts or loans to help others purchase a first home. However, in answer to the first question about receiving gifts or loans,4 householders were not to include any money they received from others to help them purchase a first home that had been reported earlier in the interview. Consequently, the amount reported may be underestimated.

Next, separate questions on gifts and loans were asked. Whereas gifts received or given could consist of money and/or goods, loans consisted of money. Respondents were asked: "To whom did you loan more than $200 during the past 5 years?" and "Who on this list [of relatives and nonrelatives] loaned you more than $200.00 during the past 5 years?" The focus of this study is on loans only. Householders specified the total amount that they lent to people outside the household and the total

3. During the past 5 years, did you give or loan more than $200.00 to anyone who was not living in your household at that time?" 4.During the past five [sic] years have you (or your husband/wife/partner) received a gift or loan worth more than $200 at any time from anyone not living with you at the time. (Do not include money to help purchase you[r] first home that you already told me about.)"

68%

5%

14%

13%

Baby Boomers

1$200 or more.

amount that they received from different people not living with them during the 5-year period. Also, householders indicated for what specific reasons, if any, the interhousehold loans were made and received. Total loans from all sources were computed by adding the amount lent/received from parents, siblings, other relatives (excluding children), and nonrelatives. Few boomers were old enough at the time of the survey to have adult children living independently in other households; therefore, loan exchanges with these children were negligible. Consequently, exchanges with children are excluded from the analysis. All percentages and medians are weighted.

Distribution of All Householders

Forty-four percent of the householders were baby boomers 23 to 41 years old and 56 percent were nonboomers. Among boomer householders, almost one-third (32 percent) were involved in loan exchanges with people in other

Nonboomers were less likely than boomers to be involved in interhousehold loan exchanges (25 percent). Of those who participated in interhousehold loan exchanges, nonboomers were more likely to be givers than receivers.

Characteristics of Boomer Householders Who Gave and Received Loans

For the remainder of this article, data are on boomer householders who specified the amount of loans given and received. Ninety-six percent reported the amount lent, and 98 percent reported the amount received. The median loan made by these boomers was $700; the median amount received was $2,000 (table 1).