The Conways from Sheffield handed over £5,250 to 27-year-old Rebecca Waterfall, a family friend, for a four-week holiday to Disney World Florida in June 2016.
Manchester Crown Court heard Rebecca Waterfall, previously of Walkley but now of Hulme, Manchester, paid back the money after being instructed by Judge Patrick Field QC.
Judge Field QC handed Waterfall a suspended sentence of 13 months which runs for two years along with 240 hours of unpaid work in the community.
Speaking to The Star after the case, fraud victim Julie Conway, 57, of Crookes, said: "The main emotion is relief because this has been hanging over us for so long.
"We accept the outcome, the result is correct. She will have to live with what she has done."
The grandmother previously said how the whole family were stopped at the check-in desk at Manchester Airport by fraud detectives and explained to the family Waterfall had paid for their trip using her employers' credit card.
Julie said she entrusted Waterfall, a friend of her daughter’s, to book the trip after the death of her mother Doreen in November 2015. Her dad Frank also died a month before they were due to fly.
As Waterfall sobbed in the dock on Friday, her defence barrister made a ‘plea for mercy’, saying she had never been in trouble before and that her 30-year-old partner was about to undergo open heart surgery. He described her actions as ‘immature and ill-thought out’,
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