Grandparents saving for
school fees

It looks like all those birthday thank-you letters to grandma and grandad are paying off for at least a third of the nation's children.

A survey by F and C Investments shows that 37 per cent of grandparents are saving for their grandchildren's school fees and higher education, with at least 15 per cent doing so on a regular basis.

Most popular are savings and building society accounts, although some of the younger grandparents prefer friendly societies, unit and investment trusts.

Says F and C Investments boss Jason Hollands: "An investment horizon of 18 years, from birth to adulthood, is long enough for inflation to pose a significant risk to the value of cash on deposit, although of course the capital itself is secure.

"While capital is at risk in the equity markets, a longer investment period also gives a better chance of riding out short-term ups and downs and grandparents can always lock-in gains by moving parts of their investment portfolio into safer assets as the child gets older."

Copyright © Press Association 2009
All articles are copyright The Press Association 2009. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

For more about saving for your child's future click here.