Move over moms and dads. Your little pocket change is apparently not enough for your child’s college bills.
A recent study by Saga’s Savings Poll discovered that more than 16.7 billion pounds will be withdrawn from the ‘Bank of Nan and Grandad’ towards university tuition fees and expenses.
Nearly 10,000 British grandparents over the age of 50 are digging into their wallets to make sure their grandchildren get through college this year.
The study surveyed over 22 million senior citizens and found that 12.3 million (56 percent) were grandparents, but only 4.2 million (34 percent) contribute to their grandchildren’s college finances.
On average, each grandparent will dispense 4,000 pounds out of his or her savings this school year, but this isn’t the first time granny had to spend his vacation funds on college funds.
A poll in 2009 highlighted similar figures, however, only 41 percent of over 13,000 seniors were cashing out 1,000 pounds. This number remained constant for the past five years until the end of last year.
A 2013 study by Key Retirement Solutions predicted that within the next 10 years, the UK should expect to see a 13 percent increase in the number of grandparents helping with college fees.
A rise in the number of students that enrolled in college in 2013 may be a contributing factor. In comparison to 618,247 enrolled college students in 2012, more than 635,000 young adults decided to pursue a higher education last year.
Some experts say that this steady increase over the next few years will be the reason behind the growing amount of financial support by grandparents, while others say that the www.dailymail.co.uk will always be to blame.
Saga’s Chief Executive of Personal Finance Andrew Strong says that the poll’s most current figures show how important it is for grandparents to be “savvy savers” since their years of hard work tend to prevent the next generation from going into debt.
“The billions that Britain’s grandparents put aside for grandchildren shows both how hard they have…saved all their lives,” he said. “And also how lucky teenagers are now to have such generous relatives.”
The survey additionally revealed that two-thirds (67 percent) of 50+ parents assist their college-bound children.
So, maybe British parents aren’t completely handing over their child’s college expenses to a smarter, more saving-conscious grandparent. However, the figures still show how the elderly generation is becoming more financially involved in their grandchildren’s career aspirations.