Grandparents put away £1k a year for kids

Grandparents are putting away around £1,000 a year for their children, new research has shown.

The study by C&G Savings reported that the average "nest egg" given away by grandparents amounts to around £20,000, by the time the child hits 18.

More than a third (37 per cent) of those saving are aged over 65, with the likelihood of putting money away increasing as the grandparents get older.

However, of those that did not save, more than half (54 per cent) did not think that they had the financial means to do so.

Some 48 per cent thought they made their contribution in other ways to their grandchildren and their family.

Commenting on the findings, the head of savings products at C&G said: "It is very encouraging to see grandparents saving for their grandchildren.

"This not only provides a good nest egg for many children as they embark upon their adult life, but also demonstrates to the children the benefits of established savings habits."

Grandparents could find that it is a good idea to think about writing a will which can mean that their grandchildren will be guaranteed to receive money.

Published on: January 28, 2011

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