Research conducted by Birmingham Midshires has revealed that parents estimate they save around £900 every year on the costs associated with bringing up their children thanks to the contributions they receive from their own mothers and fathers. In all, grandparents shell out £75 a month in order that they can provide meals, toys, gifts and entertainment for their grandchildren.
There is a debate as to whether these figures are truly reflective of the status quo, as grandparents themselves have intimated that they spend just £65 a month to cater for their descendents' needs.
Regardless, they still appear to be spending more than a week's worth of basic state pension for a husband or wife (£139.60 per week per couple - £69.80 per person) and as a result may be forced to rely on their savings to afford their children with the requisite financial support.
As a result, Birmingham Midshires have emphasised the importance of saving for the future, and have particularly aimed their message at younger generations. It is feared that if they don't start putting money away in a bank savings account, youthful Britons will not be able to afford their own children and grandchildren financial support when they reach a more advanced age.
In the meantime, the survey shows that grandfathers are more generous with cash than grandmothers, spending an average of £69 each on their younger relatives compared to the £45 outlay of their female equivalents.
It was also discovered that grandparents are more generous when they are either young or very old. Grandparents over the age of 70 are the most generous, and shell out around £92 a month on their grandchildren. Meanwhile, those aged between 50 and 55 spend £84 a month on their grandchildren, the 56 to 60-year-old age group spends £64 and the 66 to 70 year olds spend £58.
Grandparents aged between 61 and 65, though, have been named and shamed as the least supportive, spending just £53 on average.
A regional discrepancy has also been identified, with grandparents from London found to be the biggest spendthrifts. The most frugal were found to be those living north of the border in Scotland, where the average spend is just £29 a month.
The results of the survey suggest that grandparents are far from a burden on their children - and indeed intimate that their contribution is vital.
Disclaimer:
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
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