Our Services
The Founders
Speaking Engagements
News & Information
Financial Briefs
Articles Of Interest
Featured News
Market Data Bank
Stock Quotes
Problem Solvers
Client Forms
Helpful Websites
Contact Us
Directions
Home
More Articles  Printer Friendly Version

 

Grandparents Can Become Big Spenders For Their Offspring

The cost of raising children is well known. Recent estimates put it at about $250,000 before a child even enters college. But it's not just parents who end up paying a hefty "price." It's grandparents, too.

According to a January 2017 article in the Miami Herald, grandparents spend an average of $2,383 a year just to benefit their children's children. They pay for toys, school supplies, college savings, and even extracurricular lessons.

This breakdown shows the percentage of grandparents who give money to grandkids for each purpose:

  • College savings: 19%
  • Clothing: 55%
  • Toys: 58%
  • Non-cash gifts: 39%
  • Cash gifts: 42%
  • School vacations: 27%
  • Family vacations: 16%
  • Meals out/entertainment: 38%
  • Extracurricular activities: 14%
  • Allowance/payment for chores: 10%

And it's not just money that grandparents give. More than half of millennial parents say their parents provide at least an hour of child care or household help each week. The average grandparent went all out, spending 48 hours a year on tasks including primary child care, babysitting, homework help, and transportation to after-school activities.

Some 40% of grandparents said they offered the help without being asked, and 43% said they did it because "it makes me happy." Just make sure you build this into your retirement budget.


Email this article to a friend


Index
This Is Not Your Parents' Interest Rate Cycle
Life Is Fragile, So, Please, Value Each Day As Priceless
If Family Is Wealth, Then Planning Is Immortality
Everything You've Learned About Interest Rates May Be Wrong
This First Year Under The New Law Requires Planning
Commodities Stink But Serve A Purpose
10 Years After The Great Recession
The Interest Rate Inflection Point And Your Portfolio
Inflation: A Portfolio Risk That Never Dies
New Ways To Influence The Next Generation
Giving More To Loved Ones - Tax-Free
New Deduction Rules For Business Owners
A Bright Outlook For Consumer Spending
Six Tips To Avoid Phishing Scams
Good Riddance To The Alternative Minimum Tax
The New Tax Law Gives Roth Converters A Little Less Wiggle Room

This article was written by a professional financial journalist for The Dover Group and is not intended as legal or investment advice.

©2018 Advisor Products Inc. All Rights Reserved.
Financial planning provided by Williams Advisory Services, LLC, a Registered Investment Adviser.
This message is intended for the use of the person(s) to whom it is addressed.
It may contain information that is privileged, confidential, proprietary, and/or exempt from disclosure under applicable law