Money management: 10 ways grandparent’s can help their grandchildren

From budgeting to supporting them through uni, there are plenty of ways they can assist the next generation

A HELPING HAND: Talking about finances with grandchildren can give them a greater understanding of the value of money

GRANDPARENTS ACROSS the country will be relieved that the summer school holidays are over, as two fifths (42 per cent) of them say they were been lined up to provide free childcare, according to a survey by Lloyds Bank.

And this is just the tip of the iceberg for many, with lots of grandparents also helping out younger generations with university costs or getting on the housing ladder, or dipping into their bank accounts when kids need something new.

Of course, if you have the means to do so, being able to help your grandchildren financially is possibly something you’re keen to do – but it’s a good idea to think about the most sensible ways of going about it, and balancing generosity with helpful life lessons, too.

Here are 10 tips from Hargreaves Lansdown for how grandparents can help to transform their grandchildren’s lives financially…

1. Teach them about money early

Grandparents have the freedom and space to plan the sorts of handy money lessons that parents may not have time for. Everything from Monopoly marathons to shopping trips on a budget can help.

2. Kick-start good habits

You can give them their first money box and talk to them about saving up. Check their savings account with them regularly, so they can see the impact of their effort.

3. Encourage them to save

Set them a goal which they can reach in a few weeks. Once they have reached that, set another. Matching what they save pound for pound really helps here.

4. Help them invest

A Junior Isa can be a great way to do this. As they get older, you can help them assess their investments, so when they have control of the funds, they can make better decisions.

5. Support them with school or university fees

Not only will this help your grandchildren cover their costs, but, the cash may also be considered to be out of your estate for inheritance tax purposes…

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