Let’s hear it for grandparents – and their tips about money!

Friday, October 03, 2014

To celebrate Grandparents Day this month, we asked grandparents for their top money management tips - the ones they will pass on to their grandchildren.

Grandparents Day

Not only can we commend grandparents for helping to support their families with duties such as childcare, we can also thank them for their financial support …

  • 42% of grandparents are saving for their grandchildren's future (of those who don't, 55% said it was because they simply couldn't afford it)*
  • on average those grandparents who are saving put away £154 each a year - or £2.4 billion collectively*

… and they have lots of wise advice to pass on too, and here's a selection of their money-related tips, which we're sure you'll agree, we could all learn a thing or two from:

  • When you get your wage, put away everything you need for the coming week. Divide the rest of your money into four: quarter for fun and frivolity, quarter for savings, quarter for emergencies and the final quarter for making your dreams come true.
  • I do online food shopping in what I think is a novel way. On the first attempt, I order what I fancy and the next day I look at each item and the total, thinking do I really need that? I manage to shave off quite a bit. I also go for offers and store them.
  • If you can't get the cash out of the hole in the wall to pay for it, then you can't afford it.
  • Mr Micawber's famous, and oft-quoted, recipe for happiness:
    "Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."
    Charles Dickens, David Copperfield
  • If you're worried that you would overspend with a debit or credit card, get one of those 'pre-loaded' cards. You set up your money on the card and when you reach that amount that's it - no more spending.
  • At the end of the month, take whatever you have left and put in savings.
  • Don't buy on credit - it's a lovely feeling when you buy something you've saved for
  • Save up the equivalent of three months' overheads/expenses and keep it in an interest-bearing account to cover emergencies, like illness or the necessity to replace something that hadn't been foreseen. 
  • My best tip is to learn to manage spreadsheets - once I did this, going overdrawn was a thing of the past and I could project the year ahead.
  • Never live beyond your means, no matter what everyone else seems to have.

Many thanks to all the money-savvy grandparents on Gransnet and the Mature Times for their help!

* Source: JP Morgan Asset Management, July 2013 

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