Families reliant on generosity of grandparents

GENEROUS grandparents are increasingly a financial lifeline for families, lavishing grandchildren with pocket money, helping out during half-term and taking them on holiday.

They are also on the frontline in the battle against “pester power”, which can cost a small fortune as parents struggle to say no to demands for fast food, toys and digital apps.

Grandparents also play a vital role in teaching positive money habits that can last a lifetime.

HELPING HAND

Nearly three-quarters of grandparents are looking after their grandchildren this half-term, with more than half taking them on days out or short staycations, according to research from travel insurer AllClear.

While half will take care of grandchildren for between one and three days, more than one in 10 will stretch that to five days or even a week, with only a tiny number reimbursed for the costs.

Chief executive Chris Rolland said parents are an invaluable resource for working parents,

saving them an incredible £6.8 billion a year in childcare. “They absolutely deserve our gratitude,” he said.

More than a third of children get pocket money from grandparents, with one in five getting £10 or more a week.

The average is £6.08 a week, up from £5.45 last year, according to the annual Halifax Pocket Money Survey.

Parents or guardians give another £7.12 a week on average, but more than one in four children still think they should be getting more.

Giles Martin, head of savings at Halifax, said many are taking the opportunity to encourage savings, with most children putting at least some of their money in the bank: “A regular pocket money allowance helps children appreciate the value of money and save for something they really want.”

Charter Savings Bank executive director Paul Whitlock said take the opportunity to educate children about the importance of hard work: “If children have to complete chores before getting pocket money, they’ll learn a positive work ethic.”

FIGHT THE POWER

Parents spend an incredible £1,700 a year caving in to pester power, with half saying they faced it in the last month.

Sweets, chocolate, crisps and sugary drinks are top demands, closely followed by meals out or fast food, then toys. Digital is opening up a new battleground, as children baffle the older generation with demands for video games, in-game purchases and downloadable content, according to the research from savings provider OneFamily.

Savings and investments director Nici Audhlam-Gardiner said you can turn pester power to your advantage: “Explain that essentials need to be paid for first, ask children if they can afford it from pocket money, and encourage them to budget.”

She added: “This will prepare them for the financial challenges of adulthood.”