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Grandparents and grandchildren: credit crunch, what credit crunch?

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Grandparents would rather cut back on basic essentials for themselves than deny treats to their grandchildren, a report by Saga has revealed

Even as the credit crunch bites grandparents still admit to spoiling the grandkids. But the little ones' luck may still run out as treats for the family could also be cut back if the economic climate worsens.

According to Saga's Populus study, the biggest panel of over 50s in the UK, the credit crunch is hitting women over 50 more than men of the same age.

In an attempt to save money, almost a fifth more women than men are cutting back on treats for themselves. In addition, more than four-fifths of women (compared to only three-quarters of men) have admitted having to change their lifestyles in the light of rising costs.

Half the over 50s polled said their main cutback was with use of the car and personal treats for themselves. However, kids and grandchildren are still being indulged, despite the rising cost of living. Fewer than one in eight of the over 50s are spending less on children and grandchildren.

That's not to say grandchildren won't feel the effects of an imminent recession. The over 50s admit that, if the credit crunch worsens, then they will have to cut back on gifts.

While people aged over 50 are more than happy to make personal sacrifices, nearly a third said that treats for children and grandchildren would be the next thing to go if their personal finances worsened.

Andrew Goodsell, Chief Executive of Saga said: "With rising food and fuel prices people are having to make savings where they can.

"However grandparents seem determined to insulate their grandchildren from the current economic pinch and, although they may cut back themselves, treats for their grandchildren will be one of the last things to go."

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