Alex O'Brien
Money & Banking

5 things to be mindful of when giving grandkids money

Half the fun of having grandchildren is spoiling them, but there are times, especially when it comes to monetary gifts, where we have to exhibit a degree of caution. We’re going to run through our etiquette guide for giving grandchildren money. Follow these ground rules and you’ll be able to give without stepping on anyone’s toes.

1. Always give within your means

There’s nothing wrong with being generous, but only if you have capacity to be. If you’re having a particularly tough year and aren’t in a position to give your grandchildren as much money as you normally would, by no means feel obliged to do so.

2. Communicate with their parents

People get funny around money, and if you intend to give an amount to your grandchildren it’s crucial you communicate this ahead of time with their parents. Even though you have the right intentions, you never know how the gift will be interpreted.

3. Try to be fair with your contributions

While this may be difficult when giving to multiple grandchildren of differing ages, it’s highly important that you’re fair with your contributions. Feeling as though they’re getting the short end of the stick can sometimes breed resentment among grandkids. 

4. Try to manage their expectations

With every contribution it’s important that your grandchildren are aware what they’re getting, why they’re getting it and how these gifts may not always be possible into the future. Managing expectations can help if something goes wrong.

5. Try to take the opportunity to teach them about money

Giving money to your grandchildren is not only a great way to reward them or help them out of a financial bind, but should also be seen as a rare and valuable chance to teach them about the value of money and adopting healthy financial practices.

Do you agree with our list? Do you think there are other points grandparents need to consider when giving gifts to grandchildren?

Let us know in the comments.

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Tags:
family, money, grandchildren, grandparenting, Gifts