Grandchildren - credit crunch, what credit crunch

Grandparents would rather cut back on basic essentials for themselves before denying the grandchildren treats, a report by over 50s experts, Saga, reveals.

As the credit crunch tightens grandparents nonetheless admit to spoiling the grandkids, but the little ones' luck may still run out as treats for the family soars up the ‘cut backs' table if the current economic situation worsens.

According to the Saga Populus study, the biggest panel of over 50s in the UK, the credit crunch is hitting women over 50 more than men of the same age. In order to save money, almost a fifth more women than men are cutting back on treats for themselves. In addition, over four fifths (83%) of women (compared to only three quarters - 77% - of men) have admitted having to change their lifestyles in light of rising costs.

The main cut back amongst over 50s is to reduce the amount they use the car (53%), followed by reducing personal treats (50%). However kids and grandchildren are still being indulged, despite the rising cost of living, as less than one in eight (13%) of over 50s are scaling back splashing out on children and grandchildren.

However little ones may still feel the effects of an imminent recession, as over 50s admit that, if the credit crunch gets worse, then they will have to cut back on gifts. Whilst people aged over 50 are prepared to make personal sacrifices in the first instance, nearly a third (30%) say that treats for children and grandchildren will be the next thing to go if their personal finances situation worsens.

Andrew Goodsell, Chief Executive of Saga said: "With rising food and fuel prices people are having to make savings where they can. However grandparents seem determined to insulate their grandchildren from the current economic pinch and, although they may cut back themselves, treats for their grandchildren will be one of the last things to go."