Exhibit 23.1


                        Consent of Independent Auditors

     We consent to the reference to our firm under the caption "Experts" in 
Amendment No. 1 to the Registration Statement (Form S-3 No. 333-29315) and
related Prospectus of Liberty Financial Companies, Inc. for the registration of
2,875,000 shares of its common stock and to the inclusion and incorporation by
reference therein of our report dated February 5, 1997, with respect to the
consolidated financial statements of Liberty Financial Companies, Inc.
incorporated by reference in its Annual Report (Form 10-K) for the year ended
December 31, 1996 and included in the Registration Statement, and to the
incorporation by reference of our report dated February 5, 1997, with respect
to the related financial statement schedules included in its Annual Report
(Form 10-K), and incorporated by reference in the Registration Statement, filed
with the Securities and Exchange Commission.



                                                  ERNST & YOUNG LLP



Boston, Massachusetts
June 24, 1997