Grandparents Providing ‘Significant’ Financial Help
Parents are receiving financial help in raising their children from their own mums and dads, new figures show.
In research carried out by Birmingham Midshires, parents claim that they are saving about 75 pounds every month as their mothers and fathers help them to meet the costs of various gifts, meals, toys and entertainment for their offspring. And with this figure accounting for some 900 pounds over the course of a year, consumers could well find that such monetary assistance leaves them in a more capable position to meet other demands on their spending, with possible areas including mortgages, home loans and utility bills.
However, grandparents themselves state that they can afford to provide financial aid for their grandchildren of some 65 pounds per month - a figure just short of the weekly individual basic state pension (69 pounds 80p). The study also showed that it is males who are likely to give more money towards their grandchildren, as grandfathers spend some 69 pounds per month, while grandmothers’ expenditure accounts for 45 pounds. Those over 70 are also most generous, as financial contributions from the age demographic stands at 92 pounds. Meanwhile, people between the ages of 50 and 55 provide 84 pounds per month while 61 to 65-year-olds pay 53 pounds.
In addition, the findings indicated that those grandparents living in London are likely to spend the most money on their young relatives at 75 pounds per month, followed by people in the midlands who splurge some 73 pounds. On the other hand, expenditure consumers from the Borders region of Scotland accounts for 29 pounds per month.
Commenting on the figures, Jason Robinson, director of savings operations for 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.”
However, Mr Robinson stated that it is “questionable” whether current generations of young Britons will be able to provide such financial help to their grandchildren in years to come, “given Britain’s well-publicised levels of consumer debt”, which may have been accrued via store cards and overdrafts.
Both parents and grandparents who would like to free up more money each month, whether is to help provide for their children and grandchildren or invest into pension funds, may way wish to consider applying for a debt consolidation loan. In taking out a low-rate loan, borrowers can unify demands on spending into a single monthly repayment. And such a loan could be helpful in paying back money owed to family members. A recent study by Skipton Building Society indicates that Britons owe a total of over 251 billion pounds in loans from their relatives, an increase of some 82 per cent from the 14 billion pounds lent from family members from the same survey carried out a decade ago.
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