Grandparents are being forced to use their savings to help out their adult grandchildren.
Research by MoneySupermarket.com has discovered 24 per cent of grandparents are providing financial assistance to their children's offspring, dubbed greyday loans.
As well as this, 32 per cent of such people are still giving money to their own kids as the problems with the UK's economy rumble on.
Kevin Mountford, head of banking at MoneySupermarket.com, said: "With the nations' wallets pushed to the limits, it is clear … support has grown significantly."
He added consumers have to make sure they are not paying over the odds for items such as car and home insurance, while they should also take control of their monetary situation.
While parents and grandparents traditionally help youngsters out with big purchases, such as a house or a wedding, now the cash is merely being used to cover the cost of living.
This highlights the need to have a savings plan in place in order to ensure people do not face financial peril.