British grandparents are digging deep into their pockets to help their children and grandchildren by contributing billions of pounds every year to savings and family costs.
The latest research from J.P Morgan Asset Management shows that two-fifths of them are saving for their grandchildren’s future while many give up more than ten hours a week of free childcare.
On average, grandparents put away £154 each for their grandchildren, with savings accounts being the most popular way to save.
Keith Evins, Head of UK Funds Marketing at JPMAM, said: “Bringing up a family while making ends meet is certainly no mean feat. Fortunately, the nation’s grandparents are helping their families financially and with their time, too.
“As parents and grandparents it’s important we do as much as possible to lay a good financial foundation for our families, so it’s encouraging to see generations rallying round each other with support.”
Of those who are not saving for their grandchildren, 55% said it was solely as they could not afford it, while one in six said another family member was already taking care of the saving.
As well as saving, many grandparents are contributing financially to the day-to-day costs of raising children, by helping to buy clothes, school uniforms and shoes.
According to the survey, an average of £257 each year was spent on such items while one in eight grandparents provided payments for home improvements.
The survey also investigated the ways in which grandparents have contributed financially to the lives of their grown-up children and found they were often just as helpful.
Just over a third said they helped with everyday living costs while a fifth have helped with a deposit for a home.
They were also forthcoming in providing funding for the costs of a wedding, a new car or a holiday while 5% said they help their children with mortgage payments.
Of those to lend money, two thirds said they would never ask for it back while 5% had already done so.