When It Comes To Money Grandparents Know Best
Many of Britain’s youngsters are missing out on financial advice from their grandparents, according to new Savings Survey data from NS&I.
Over one third (36%)1 of the population believe their grandparents are good financial role models, yet only one in ten people (10%) have taken the opportunity to listen to financial advice from senior family members.
NS&I’s data reveals that this information gap comes from a reticence among older generations to share their financial wisdom. Many Britons (37%) of retirement age and older say they are holding back as they believe younger people don’t want to hear what they have to say on money matters.
However, contrary to these views, much of the younger generation of British savers actually long for financial advice from their grandparents. A fifth (20%)1 say older family members are in a better position to give guidance on these matters as they have more time to dedicate to finances.
Despite this, many (33%)1 feel they aren’t receiving the wisdom they want and need from their grandparents.
However, it is clear they are aware of the money management experience their grandparents will have built up over the years - some, 60% 1 of 35-44 year-olds say they haven’t previously received any advice from their grandparents but wish they had.
NS&I Savings Spokesperson, John Prout, said "Our findings indicate a lack of communication between generations in some families. When it comes to discussing money management we feel it’s important people share their experiences and we are encouraging all generations to talk openly about finances and help each other plan for the future."
"These are challenging times for all of us, and as younger people are often making financial decisions for the first time having the opinion of someone who has already been through these life stages can be invaluable.
"Grandparents can help the younger generations by giving them useful tips and advice on how to manage expenses such as saving for a deposit on their first home, a new car or simply saving in case of an emergency.
"Our research shows the young want this information and they will benefit from it. Of course young people can also seek advice from an independent financial advisor."
Although the results indicate that grandparents are being reticent when it comes to offering financial advice, when they do it is gratefully received by young people.
One in four (26%)1 say they wished they had access to this knowledge more often, while only 2%1 say they resent receiving advice from their grandparents. 2% say they don’t listen to it.
In fact, more than one in ten (14%)1 admit to being frustrated by the fact they hadn’t made more of their grandparents’ wealth of financial knowledge.
Commenting on the research, Gerard Lemos, Chairman of the Money Advice Service, said:
"These new findings reinforce our own ‘Money Chat’ research which highlight that when it comes to money matters many of us don’t have anyone to confide in.
"When it comes to the important things in life, such as relationships or careers, it’s great to chat things through with someone who we trust. The same is true for money matters, although finding the right person to talk to can often seem challenging on top of sorting out everything else in life.
"Here at the Money Advice Service we believe it’s important to talk about money. Whether you’ve got a little or a lot, money affects many aspects of our lives so it makes sense to talk to those closest to us for practical help and tips on where to start.
"Talking to others, who have experience about a financial situation - such as grandparents - is a great way to get the conversation started. Take a look at our website for lots of free resources to help you open up the dialogue".
The research also revealed that 11% of people aged between 16-34 years old in Britain - approximately 1.7 million admit to having no savings in place. The results highlight that it is clear that well balanced advice from grandparents has never been more needed.
The NS&I research also highlighted some of our grandparents’ favourite words of wisdom:
- Two fifths (41%) of grandparents are likely to say ‘never spend what you don’t have’
- 39% of grandparents are likely to say ‘take care of the pennies and the pounds will take care of themselves’
- Over one third (35%) of grandparents are likely to say ‘save for a rainy day, you never know what will happen in the future’
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