Grandparents are providing financial assistance to their grandchildren to fill the gap left by parents who are not debt free.
According to research from CreditExpert, the financial “void” left by parents who are struggling with debt management has seen more than a quarter (26 per cent) of grandparents setting aside money for their grandchildren despite not being in work.
Some 4.5 million (31 per cent) of grandparents are putting money aside for their grandchildren in total, a consequence of parents being weighed down with mortgages, loans and other burdens.
“It seems many grandparents are stepping up to fill the financial void of the ‘credit generation’ whose money is increasingly tied up in mortgages, loans and credit agreements,” said Jim Hodgkins, managing director of CreditExpert.
One in seven grandparents are worried about the financial hurdles their grandchildren will face in later life, according to the research.
The Treasury recently revealed that some £11.5 million was being used to kick-start financial education in schools, with the hope that improved financial knowledge will help children avoid debt management issues and money problems in later life.