Grandparents are digging deep to help their children and grandchildren by contributing billions of pounds every year towards long-term savings and everyday family costs, according to new research.
Two-fifths of grandparents (42%) are saving for their grandchildren’s future, and last year they put away an average of £154 each, or £2.4 billion collectively, in savings accounts.
Have a look at our round-up of the Best Rate children’s savings accounts on the market at the moment, but also make sure you’re making the most of your money by checking our list of Best Rate savings accounts.
Savings and pensions used to help pay for weddings and home deposits
The research, which saw J.P. Morgan Asset Management poll more than 1,000 grandparents on all of the ways they help their families financially, found a fifth have helped pay for a deposit on a home, while 5% help their grown-up children with their monthly mortgage payments.
If you, or a family member, are looking to buy a new property read our guide to mortgage deposits. Meanwhile 32% of grandparents also assist with the cost of a wedding. See how the cost of the big day can be cut with our guide to budget weddings.
The research also found that 31% of grandparents help their grandchildren when they are buying a car, while 28% help with the cost of holidays.
Grandparents contribute towards day-to-day costs
Many grandparents are contributing towards the day-to-day costs of raising children to the tune of £257 each a year, or more than £4 billion collectively.
Just over a third (36%) help buy clothes and school uniforms, 29% pay for shoes (including school shoes), and 16% help cover the cost of school trips.
One in eight (12%) are also paying for, or towards, improvements for the family home. Whether it’s major renovation work or just some general maintenance, make sure you get your house in order with Which?’s home improvement advice and reviews.
Struggling families becoming dependent on generous grandparents
Two-thirds of grandparents (64%) wouldn’t ask their grown-up children for the money back, a quarter say that they would; 8% have agreed to repayment terms, and 5% have already asked for the cash back.
More than half of those who aren’t saving for their grandchildren say it’s because they cannot afford to. One in six say that parents or other family members are already taking care of this, and one in ten say they just don’t want to.
In further research, J.P. Morgan Asset Management also polled parents on their views on accepting financial help from their own parents. Half say they have accepted financial help, and a tenth of those (11%) admit they couldn’t survive without it.
- Best Rate children’s savings accounts – all rounded-up in one place
- Child trust funds – we explain everything you need to know
- Best Rate cash Isas – our round-up of the best tax-free accounts