Even though grandparents lavish gifts upon their grandchildren at Christmas, many are helping them save too, Norwich Union has said.
A survey by the building society found grandparents spend around £600 on Christmas every year, spending £65 on toys for each grandchild.
However, many prefer to put money aside that will help finance their education or house deposit later on.
Daren Carter added: "Despite the older generation admitting they splash out on their grandchildren it isn't all frittered away on expensive gifts.
"Over one in eight (13 per cent) finance savvy grandparents prefer to help towards long-term investment for their grandchildren and 600,000 (five per cent) help pay for their education."
However, over a third of grandparents say that even though they splash out at Christmas, they cannot afford to.
Many admit they spend around £14 above average on presents for each of their grandchildren every year even though they do not have enough money.To read more about Child Savings, click here.
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