Nearly three in four grandparents (72%) say that putting money into a nest-egg is an acceptable substitute for a physical birthday gift, against a backdrop of concern over the environmental impact of plastic toys.

In a new survey of more than 2,000 UK adults by the leading mutual Scottish Friendly, 62% of grandparents say they are concerned about the impact that buying plastic toys for their grandchildren can have on the environment.

The survey shows that grandparents are even more environmentally conscious than parents with children aged under 18, some 56% of whom expressed the same concern.

When asked how they would respond if the parent of their grandchild requested a nest-egg contribution in place of a gift, 67% of grandparents said they would buy a small present while saving the rest. A further 14% said they would put the entire amount into savings and skip the gift altogether.

The findings suggest the long-standing tradition of giving physical birthday presents is softening, with many grandparents open to more sustainable and financially meaningful alternatives.

Scottish Friendly’s research found that grandparents currently spend £81.20 on average on each grandchild’s birthday gift.

However, the amount spent on gifts varies significantly across the UK, with grandparents in London spending the most (£124.50), followed by those in the North West (£103.70), Wales (£101.40), East of England (£94.60), South West (£71.70), East Midlands (£69.80), South East (£69.50), West Midlands (£69), Yorkshire & Humber (£63), Scotland (£62), Northern Ireland (£60.90) and North East (£52.50).

With grandparents more open to giving financial gifts, Scottish Friendly is calling on the Government to make it easier for them to do so by reforming the Junior ISA (JISA) rules.

At present, only a parent or a guardian can open a JISA on behalf of a child aged under 16. But the leading mutual believes these rules should be reformed to allow grandparents to be able to open the product on behalf of a child to ease the financial burden on parents.

Kevin Brown

Grandparents are telling us loud and clear that they don’t want to keep adding to the mountain of plastic toys that eventually end up as waste. They’re looking for birthday gifts that feel more responsible and more meaningful – something that can go a long way to help build a more resilient financial future for their grandchild as well as being better for the environment.

That’s why so many people are open to putting money into a nest-egg instead of buying yet another toy. However, at the moment, the system does not properly support families who prefer to gift in this way. Close relatives can contribute to a JISA, but they can’t open one on behalf of a child.

If grandparents want to help build a child’s future, the rules shouldn’t get in the way. That’s why Scottish Friendly is calling for grandparents to be allowed to open and manage a JISA on behalf of a child to help support a much needed financial boost when they reach adulthood.