Parents estimate that they save £900 a year on the cost of bringing up their children thanks to the generosity of their own mum and dad (their children’s grandparents) according to new research.
The latest findings from leading savings provider Birmingham Midshires’ Life 2 campaign, which explores the issues affecting the over 55s, reveals that parents save an average of £75 a month by relying on grandma and grandpa to provide meals, toys, gifts and entertainment.
Penny-wise grandparents themselves say that they can actually cater for their grandchildren’s needs for just £65 per month. However, this is still little short of one week’s worth of Basic State Pension for a husband or wife (£139.60 per week per couple - £69.80 per person).
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In the battle of the sexes, grandfathers are more generous with their cash, spending £69 a month on their young relatives compared to grandmothers who spend just £45.
Children are better off if their grandparents are either very young or very old, with grandparents over the age the age of 70 the most generous, spending £92 a month on their grandchildren.
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Grandparents from London spend the most, £75, followed by those in the Midlands whose monthly expenditure on their grandchildren is £73. The most frugal grandparents are in the Borders of Scotland, where the average spend is just £29 a month.
Jason Robinson, director of savings operations at Birmingham Midshires said: “Far from being a burden on their children, grandparents are contributing significant amounts of time, money and assistance to their offspring at the same time as adjusting to huge changes in their own lifestyle and income.
“With grandparents spending the equivalent of around one week’s State Pension a month on their grandchildren, many are reaping the benefits of having long term savings to fall back on. Given Britain’s well-publicised levels of consumer debt it is questionable whether, without savings, the current generation of grandchildren will be able to do the same in 40 or 50 year’s time for their children’s children.”
Date: 21st, November, 2007
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