Forget the bank of Mum and Dad: leave it to Granny

One in nine grandparents feel parents can't adequately provide for grandchildren

Four and a half million (31 per cent) British grandparents are putting money aside for their grandchildren because they are concerned about today's rising property prices, the cost of further education and low quality of living compared to their own childhoods, new research reveals.

It seems that the purse strings of the Bank of Mum and Dad have been pulled tighter, perhaps because today's parents have more credit commitments.

One in nine (11 per cent) grandparents admit that they're putting money aside because they're concerned that the child's parents cannot adequately provide for their offspring and one in eight (13 per cent) admit it's because they're simply concerned their grandchild will have a lower quality of life than their own.

The study by CreditExpert.co.uk, the online credit monitoring service from Experian, also shows that many grandparents are putting money away for a specific cause, with a quarter (26 per cent) wanting to fund their grandchild's education and one in six (17 per cent) trying to help them get onto the property ladder.

The study of 547 British grandparents aged 40 years or above, also reveals: One in seven (15 per cent) are worried about the financial challenges their grandchild will face as they grow up Over a quarter (26 per cent) of grandparents put aside money despite not working Financial piggy bank The study also reveals the ways in which grandparents are giving money to their grandchildren, with one in five (19 per cent) providing only when they can afford to, compared to one in twenty (6 per cent) who put a significant sum away each month and the same amount (6 per cent) who put money aside that can only be accessed at a certain age.

Jim Hodgkins, Managing Director of CreditExpert.co.uk, said: "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.

"The concept of grandparents putting money aside for their grandchildren is not new, but the reasons why they give money certainly seem to be.

A decade ago many would have just given their grandchildren birthday money or to set up a building society account.

Nowadays, it's more likely to help the child onto the property ladder, one of the defining struggles young people face in today's society.

"Assisting grandchildren financially can give them the helping hand they need as they reach adulthood, but it's important that young people learn to properly manage their finances on their own and don't rely too much on handouts.

"An online credit monitoring service like CreditExpert.co.uk can help you manage your finances as well as provide a summary of your credit history and alert you to any changes in your credit report.

You can sign up for a free, 30-day trial at www.CreditExpert.co.uk.".

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