Grandparents Splash the Cash
Grandparents are providing invaluable financial support to their grandchildren, new research shows, spending £6,165 over the first 18 years of their life.
Following the Government’s decision to cut Child Trust Fund vouchers for children born after 1st January 2011 this cash injection from generous grandparents will be more relied upon than ever before.
The research by Marks and Spencer showed one in five grandparents spend over £50 on Christmas presents for each grandchild and 11 percent spend more than this on each birthday gift.
Over the first 18 years of each grandchild’s life grandparents spend on average £6165 in either money or presents, with £315 spent on average per grandchild in their first year.
If you rely on Child Trust Fund try using a prepaid debit card to help budget.
“With planned benefit cuts likely to affect families across the UK, it is reassuring to see additional support being provided by doting grandparents,” said Colin Kersley, M&S chief executive.
A further 20 percent of grandparents admit to spending more on their grandchildren than they did on their own children.
While 28 percent of grandparents give the next generation money for future use into adulthood, and 10 percent give them regular pocket money.
Those grandparents with fewer grandchildren give larger gifts – those with one grandchild spend £38 on the average birthday gift compared to those with four or five grandchildren spending £29 on average.
Grandmothers spend more on clothes, toys and days out - while grandfathers contribute more to holidays, holiday pocket money and regular pocket money.
Prepaid Debit Cards
By simply loading a set amount on a prepaid money card, consumers can spend with the knowledge that they will not get into debt or land a large credit card bill.
It prevents the user from spending more than they can afford so they are able to tuck some away for a rainy day or simply manage their money better.