Being a Grandparent Is Shockingly Expensive
We know how pricey parenting is, with a recent report about the cost of raising kids in 2024 acting as a sobering reminder of how much our bank accounts feel the reality of child-rearing. But it’s not often that we stop and think about how much it costs grandparents to have grandchildren—at least I don’t!
Sure, I notice how generous my parents are when it comes to my children, often sending them sweet gifts, paying for meals when we’re together, and even contributing to their college funds. I didn’t realize how significant of a financial burden Grandma and Grandpa actually have even though their own kids are grown up.
Grandparents Sacrifice So Grandkids Can Thrive
A new survey reveals the jaw-dropping amount of money grandparents spend on helping to raise the next generation. The Senior List talked to 1,200 grandparents and learned that on average, grandparents are shelling out just shy of $4,000 on their grandkids each year. Ten percent of those surveyed reported giving $10,000 or more.
In addition, according to the survey, 63% of grandparents make monetary sacrifices for their grandkids’ happiness—and 26% live more conservatively so they can help support their grandchildren. Given these findings, it seems you’re nowhere near off the hook financially once your kids are out of the house!
There were more eye-opening statistics from the survey, including that 10% of grandparents go into debt or delay their retirement to keep their contributions coming. One in five grandparents admitted to feeling pressured to give more money to their children’s children than they can afford.
It’s important to note that these statistics don’t just highlight a small sector of seniors. In fact, 96% of grandparents say they financially contribute to their grandkids in some way, whether they help pay for daily expenses, clothing and shoes, vacations, education, or health care. Meanwhile, as many as 16% of grandparents have at least one grandchild living in their home.
As the survey points out, current grandparents possess most of the wealth in the United States, which may account for why they are providing so much financial support for their offspring’s offspring.
Grandparents Providing Financial Support Is Not New
Although I was taken aback by this new survey’s findings, Patty David, the Vice President of Consumer Insights for AARP tells Parents it doesn’t come as a surprise.
“In 2018 when we ran our last grandparenting study, the average spend was about $2,600 a year,” she says. Six years later, the fact that the number has gone up to $4,000 is expected, according to David. She adds that more than half of grandparents have at least one grandchild who lives more than 200 miles away. That means that the cost just to go visit is often a challenge.
But David notes there are many other ways that grandparents can add value to their grandkids’ lives outside of spending money, especially if finances are tight.
“What grandparents want more than anything is to have a relationship with their grandchildren and to spend time with them,” she says. “There are numerous ways they can do that without spending large amounts of money. Roles of the modern grandparent consist of being a source of wisdom, conveyer of the family legacy, a friend, storyteller, teacher, mentor, and caregiver.”
I second the notion that the grandparent-grandchild relationship is extremely important, and I value my parents’ roles in my kids’ lives far beyond what they contribute financially.