Parents often don’t only support their children; they do what they can long after to support their grandchildren as well.
That support commonly comes in the form of advice and guidance, sharing cultural traditions and knowledge, time together or providing childcare assistance.
Other times that support is financial, and grandparents may make sacrifices to help their family.
To put a number on that, 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 spend money on their grandkids, and 62% spend $1,000 or more per year. On average, though, grandparents spend $3,948 annually on grandchildren.
But just because they do it doesn’t mean that every giving grandparent can afford it. Many make sacrifices in their own lives to be so charitable.
Here’s what grandparents are most willing to give up so they can support their grandchildren, according to The Senior List survey.
1. Live a more frugal lifestyle
Survey respondents who said they:
- Have done this to support grandchildren financially: 26%
- Would consider doing this to support grandchildren financially: 50%
Being frugal is generally a solid way to live life, but there are limits to how far one can go. Some sacrifices just aren’t worth it. Make space for hobbies and other little things that bring joy into your life. Live modestly, look for coupons and sales, and forget luxury goods. Don’t sacrifice the happiness that comes from an affordable hobby and occasional treat.
2. Liquidate savings
Survey respondents who said they:
- Have done this to support grandchildren financially: 14%
- Would consider doing this to support grandchildren financially: 57%
The most common type of financial support grandparents provide centers on gifts and other unessential things. Everyone loves to spoil a family member with a nice gift when they can, but it certainly isn’t worth pulling hard-earned money from retirement and other savings accounts.
3. Retire later (tie)
Survey respondents who said they:
- Have done this to support grandchildren financially: 10%
- Would consider doing this to support grandchildren financially: 42%
A less common — but much more expensive — show of support from some grandparents is giving money to grandchildren for a new car or other major expense. Retirement is a lifelong goal, and after working for years to earn it, don’t push back your golden years of relaxation for unessential goods. A lot of grandparents opt to show their love with quality time, and that’s a pretty solid replacement for those who appreciate you.
3. Take on debt (tie)
Survey respondents who said they:
- Have done this to support grandchildren financially: 10%
- Would consider doing this to support grandchildren financially: 29%
No matter what stage in life, debt can have a serious effect on financial health. The world’s richest people understand that some things can be forgone. Billionaire investor Warren Buffett, for example, worked to give his kids a “normal” upbringing, comfortable but devoid of fancy houses, private schools and cars. If a famously rich man can withhold an abundance of familial spoiling, you probably can (and should) too. Being saddled with debt just isn’t worth it.
Other moves made by supportive grandparents
A grandparent’s will to help their family doesn’t end there. The Senior List found respondents were also willing to do the following to support their grandchildren:
- Co-sign a car, home or other loan: 4% have done it, and 40% would consider it.
- Co-sign for private student loans: 3% have done it, and 39% would consider it.
- Come out of retirement: 3% have done it, and 37% would consider it.
- Refinance their home: 1% have done it, and 20% would consider it.
Add a Comment