Grandparents splash out on new arrivals more than Mum and Dad

While new parents are infamous for kitting out nurseries with the latest in baby gear, figures from The Baby Show reveal that grandparents are actually the biggest spenders on newborns.

According to a survey of 1000 visitors at The Baby Show, the UK’s leading pregnancy and parenting event, grandparents spent around £100 more than parents on kit for their grandchildren, averaging around £809.

Of course, grandparents do much more than just spend money on baby equipment, as an increasing number are giving their time to help raise and care for their grandchildren. Over 10 million UK pensioners provide childcare for their grandchildren, helping their own children pursue their careers, and even 6% of first-time homebuyers receive deposit help from their grandparents.

Nicole Muller, Show Director for The Baby Show, said: "The stereotypical model of a grandparent 30 years ago does not exist in modern times, they are more energetic and full of life than ever. Due to the rising costs of childcare and living and the growth of career couples wanting to offer the best for their families future, new parents are calling upon their own parents to care for their grandchildren. Many working parents benefit by granny & granddad looking after the little ones for at least one day a week. This saves up to £500 a month in childcare costs, which they can then save for their child’s future."

Arabela Velasco of CompareJuniorISA.com, a leading children’s savings website, echoed the sentiments of The Baby Show director. "Grandparents are an inextricable part of the modern family, as they not only save parents money through childcare but also help raise happy children," she said.

"Today’s pensioners are exceedingly generous, from splashing out on gifts for newborns to helping to contribute towards children’s university funds. Because of the help of grandparents, more and more families are working together to raise children in multi-generational families, which not only saves money but is also good for children," Velasco continued.

Grandparents who want to help families save for their children’s future may want to look into savings accounts like the Junior ISA, offered by providers like Shepherd’s Friendly. This tax-free children’s savings account must be opened by a parent or guardian, but grandparents are free to contribute whenever they like – up to £3,720 a year – after the account is initially opened.