How grandparents can help their grandkids financially

The relationship between grandparents and their grandchildren is a truly special one. You get all of the benefits of being in a child’s life without the need to discipline or punish them. Over the years, it’s common for a doting grandparent to look for ways they can help to provide for their grandchildren financially over the years to come. 

And while inheritance tax seems to be the tried and tested formula to provide a nest egg for your beloved grandkids, there are other far more simple ways you can choose to help them out and support the dreams they have for the future. 

There’s no wrong way to support the people you love, but for a truly memorable gesture that will stay with them forever, consider some of the following ways you can help to give your grandchildren a better financial future. 

Make a regular contribution to a Junior ISA 

While a Junior ISA would need to be set up by their parents or legal guardians, you can contribute to a Junior ISA throughout the years. When your grandchild turns 18 years old, they’ll receive the ISA and the funds in it as a legal adult. 

Overall, annual Junior ISAs can reach £9,000 of funds tax-free, meaning you’ll be a huge part of a wonderful nest egg that helps them to dictate their own future path. 

Help with their higher education costs

Going to University is a huge milestone in the lives of your grandchildren. Whether they’re old enough to start looking at places to visit or just seem keen on studying a certain subject when they’re older, you’ll be able to contribute to outgoings like bills and book costs. 

If you’re feeling particularly generous, you could even cover their University fees and save them the headache of applying for funding and incurring years of student debt. 

Add to a deposit on their first home 

While owning a home was pretty commonplace when you were their age, your grandchildren may not have the funds to get on the property ladder. And with deposits for the average home in the UK reaching upwards of £50,000, it’s becoming increasingly difficult for the younger generations to find their own homes and start their lives. 

Ask them what their future goals are 

Sometimes, taking the direct approach can make all the difference. Perhaps they actually have a business idea in mind, or a passion that they long to pursue, but don’t have the funds to make their dream a reality. Either way, sometimes the warmth of a kind grandparent can break those walls down, and give you the chance to understand what they need from their loved ones. 

With these simple ideas above, you can help to ensure that no matter where your grandkids go in life, they know they’re loved, supported, and have the finances to reach their goals. And if you can do that, you’ll have been a huge part of their future success!

*This is a collaborative post.