Indeed, 64% have given cash directly to their grandchildren while 14% have given money to their own children to spend on these younger members of their family. Arguably, the most generous grandparents live in the North West with 70% giving their grandchildren money directly and a further 14% providing their own children with cash to spend on their grandchildren. However, those in Scotland did give the largest amount (£404) annually followed by those in the West Midlands (£395).
The majority of grandparents gave this cash at birthdays (74%) or Christmas (61%) but 45% said they used it to treat their grandchildren and 28% gave it as a boost to help them afford something that they had been saving for.
While this type of giving may be spent on what some may consider to be luxuries, 15% gave money to help their grandchildren pay for things they needed like new shoes and 13% looked to help their grandchildren by giving them money to spend on things their parents could not afford. In addition, 11% provided cash to pay for education expenses, such as school fees, uniforms or extra activities.
Andrew Megson, Managing Director of Retirement at Partnership, comments:
“With many grandchildren eagerly debating how they will spend the money that their grandparents have given them for Christmas, it is interesting to note just how much financial support this generation provides. With the rising cost of living and an increasing number of households finding that their budgets are stretched, we anticipate that inter-generational giving will grow in the future.”
