'A third of grandparents saving for children'
Around a third of grandparents in the UK save money for their grandchildren, the results of a new study suggest.
Conducted by YouGov on behalf of investment managers Baillie Gifford, the research found that 33 per cent of such people were putting money away for youngsters in their families.
This compares to 51 per cent of parents who are saving for children.
It was also found that 48 per cent of grandparents who are depositing money for their grandchildren do so in cash accounts, while 23 per cent put the capital in Child Trust Funds.
Meanwhile, only six per cent invest money in equity-based plans.
"With grandparents adopting a safety-first approach by saving predominantly for their grandchildren in cash savings accounts, they are ignoring the risk of inflation eroding the value of their savings," warned Baillie Gifford's marketing campaign manager Ian Bruce.
Recently, Grant Bather, a spokesman at Virgin Money, advised that saving for children in pension funds can "make a big difference" later in their lives. 
