Grandparents set to spend £50 per grandchild at Christmas

Despite the current economic crisis, grandparents are set to spend £50 on average per grandchild at Christmas.

And with British grandparents having an average 4 grandchildren, that is upwards of £200 on kid's presents alone according to new research out today from Family Investments, family savings specialist and UK's leading Child Trust Fund provider.

But despite Grandparent's best intentions, parents would prefer alternative Christmas presents for their children from grandparents this year, with more than half of the parents questioned saying they would prefer grandparents to make a contribution towards into their child's savings account instead alongside a smaller gift. Yet 64% feel too uncomfortable to broach the subject without being asked.

Grandparents in Scotland will be spending more than the rest of the country this year, being the most likely region to spend over £200 on one grandchild alone. In contrast grandparents in the East will be spending the least, with a budget of between £25 - £50.

Kate Baker, Head of savings and investments at Family Investments said: "Grandchildren are central to the lives of many grandparents and so it is no surprise that they want to treat their grandchildren at Christmas. But spending £50 on Christmas gifts might not necessarily be the right thing in the eyes of parents."

"My message to well-meaning grandparents, would be to talk to the parents of your grandchildren and ask them what they would prefer. In our experience, parents feel that the grandparent's already do enough for the children or they don't feel comfortable raising the subject of money. But re-directing your generosity and making a donation into the children's savings account, along with a small present on the day, will create a more lasting and welcome legacy."