Grandparents take financial burden from Mum and Dad

Grandparents are easing some of the financial burden from Mum and Dad, contributing nearly a thousand pounds a year on average towards their grandchildren, according to new research.

A study by Birmingham Midshires has found that parents are saving an estimated £900 a year on the cost of bringing up their kids, thanks to the generosity of their own Mum and Dad.

Data from a survey which was undertaken revealed that grandparents spend an average of £75 a month on their grandchildren, with money being spent on entertainment, meals, toys and gifts.

Jason Robinson, director of savings operations at Birmingham Midshires, said: "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."

Grandfathers turned out to be more generous than their wives, spending an average of £69 a month to grandmothers’ £45.