You are here: Home - Saving-Banking - News -

Grandparents give £21bn to family each year

0
Written by: Paloma Kubiak
19/10/2018
Millions of grandparents give their family cash handouts in a bid to pass on their wealth during their lifetime and to help those who are struggling.

Four in 10 grandparents (5.8 million) give their children and grandchildren a helping hand, gifting an average of £1,475 each year. In total, this equates to £21.4bn.

Children receive the most at £743 a year, while grandchildren gain around £450 a year.

However, grandparents in Yorkshire and Humberside are revealed to be the most generous, donating £2,298 each year. This is followed by parents in London (£2,043) and those in the East Midlands (£1,929).

According to the research from Charter Savings Bank, grandparents’ cash is most likely to cover the younger generation’s living costs (30%), holidays (21%), and home improvements (19%).

For one in six, the money is helping towards a home deposit while 12% want to clear university debt.

But the research reveals that for 5% of grandparents, they’re also financially supporting their own parents.

In other cases, grandparents aren’t just giving families a cash boost, they’re also providing much needed childcare. The average grandparent gives up four hours a week looking after grandchildren and great-grandchildren.

This is the equivalent of working 28 days and helps save parents around £1,600, a collective £4.3bn.

While baby boomers can often afford to foot financial handouts, Charter found that 37% admitted to having to make lifestyle changes, including fewer holidays (58%), and more than a third postponed or cancelled home improvement plans.

Paul Whitlock, director of savings at Charter Savings Bank, said: “Rising living costs and squeezed family incomes mean grandparents are having to ride to the younger generation’s financial rescue. In many cases grandparents find it hard to say no and while they like being hands-on, the risk is that they compromise their own standard of living.

“Savings accounts play a key role in grandparents’ ability to finance the younger generation, so it’s important to check they’re getting a competitive rate.  Many grandparents have built up sizeable nest eggs thanks to years of saving regularly. Passing this habit down through the family will help to ensure future generations can also benefit from a financial leg-up.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week