Majority of Brits saving for grandchildren – so it’s a particularly happy Grandparents Day

The information provided in this article was accurate at the time of publishing and should be read in the context of the date it was published. Views in this article are those of the author alone and do not necessarily represent the view of Scottish Friendly.

More than half of grandparents plan to save for their grandchildren, our brand new nationwide survey has found.

We asked 2,000 people across the UK to tell us about how their attitudes to saving for younger and older generations in their families to mark Grandparents Day, which is celebrated on October 2 in the UK.

Of the 563 respondents who said they were grandparents, 51.2% (288) said they were planning to save money for their grandchildren’s future. And of this group – 36.8% or 106 – said they would want their grandchildren to put the money towards a deposit. A third (33.7% or 97 people) said they’d want their grandchildren to spend it on education.

So it’s a big “hoorah” for grandparents!

Some 67.4% of that same group of grandparents already uses or intends to use cash accounts to make those savings, whether through a traditional savings account or in a cash ISA.

Savers, however should be vigilant about interest rates as, according to Moneyfacts, the average easy-access cash ISA is currently paying just 0.82%, marginally above the 0.6% rate of inflation.

Just 9% of that same group already saves or intends to save in a stocks and shares ISA and only 25% planned or already were depositing into a Junior ISA, despite it being designed specifically for children.

So what about views of the whole survey group – our 2,000 UK male and female adults, some of whom have grandchildren and some of whom do not?

A fifth (20.6%) said a grandparent or grandparents had saved money for them with the average amount being £10,549.

What qualities do you most value in a grandparent? If you are yourself a grandparent, have you thought about saving for your grandchild’s future?

If you would like to learn more about what products you can use to invest for your grandchildren, take a look at our ISA, designed specifically with grandparents in mind. The value of the investment can fall as well as rise and you could get back less than the amount invested.

No advice has been provided by Scottish Friendly. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting Advisers may charge for providing such advice and should confirm any cost beforehand.