Whether it’s pocket money or an occasional lump sum, many grandparents give their younger relatives a regular financial boost. Chris recently bought his 4-year-old step grandson a piggy bank and encourages him to collect pennies in order to save up and buy something nice. “It’s a way of teaching the children the value of saving,” he says.
What children see and learn about money in childhood will influence how they manage their money as adults, according to the government-established Money and Pensions Service (MAPS). Its research found that children given regular pocket money, and encouraged to talk about money, tend to be better at managing their finances when they grow up.
“We’ve not set up a monthly allowance but we do give the grandchildren money for specific expenses,” says Simon. “Treating them all equally is important but, obviously, the older ones want very different things to the younger ones at the moment. I’m sure it will all even out at the end of the day.”
If you want to put some money aside for a child each month, there are plenty of options. Our Children’s Instant Saver account, owned and managed by you, offers a good rate of interest on balances from £1 to £10,000. Alternatively, if your grandchild has a BarclaysPlus account, you can make regular contributions into that.