Jul 25, 2019
According to a recent AARP study, 94% of grandparents provide some level of monetary support for their grandchildren. Grandparents spend $179 billion per year on their grandchildren. That works out to $2,562 per grandparent per year, more than $200 per month on average. Grandparents are not just giving gifts for birthdays and holidays. They are doing it all year long! More than two-thirds of that $2,562 is going towards expenses like day-to-day living costs, college tuition, and even buying cars. I think the numbers from the survey are vastly underestimated. Most grandparents do not realize just how much money they are handing over to their grand kids. Here are a few financial planning tips for big-spending grandparents.