I remember Grandma’s house growing up — movie nights, gifts and chocolate my parents didn’t have to know I’d been given.
Those happy memories for grandchildren don’t come cheap, though. Sure, the majority of grandparents aren’t with their grandchildren 24/7, but some are, and even those who aren’t can still provide an immense amount of financial support.
The Senior List, a website for older adults and their caregivers, recently surveyed 1,209 Americans at least 55 years of age. They found that 96% of grandparents financially support their grandchildren to some degree. They contribute an average of $3,948 per year to their grandchildren — regardless of age — through contributions to college funds, gifts or day-to-day expenses like groceries.
About 4% of grandparents surveyed don’t spend a dollar, but 61% spend at least $1,000 annually. Not all of them can afford to do that, though, as 1 in 5 supporting grandparents told The Senior List they feel pressured to give more than they can afford. Some even take on debt to do so.
Here’s how the spending by survey respondents breaks down:
- 35% spend $1-$999 on their grandchildren every year
- 25% spend $1,000-$2,499
- 15% spend $2,500-$4,999
- 8% spend $5,000-$7,499
- 4% spend $7,500-$9,999
- 10% spend at least $10,000
Most (88%) purchase gifts for special occasions, spending an average of about $400 a year for that purpose. More than 60% spend on clothes and shoes for their grandchildren ($300), entertainment like toys and movies ($200) and dining out ($300).
Around 27% spend an average of $500 a year on their grandchildren’s day-to-day expenses like groceries. Twenty-four percent spend an annual average of $600 contributing to savings or college funds.
Smaller percentages of grandparents pay for housing expenses (12%), health care or medical expenses (11%), school or college tuition (9%) or to support large purchases like cars or down payments on a home for their grandchildren (8%).
Grandparents may have spent much more previously, though: 55% of survey respondents said they had to reduce how much they contribute to grandchildren because of inflation. Others (38%) have maintained their support regardless, and 7% are giving even more.
At the very least, those who can contribute seem to get recognized for doing so: 87% of grandparents said they felt appreciated for their support.
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