Home|Our Services|Our Philosophy|Client Center|Planning Ideas|Resources|Disclosure|Contact Us

Financial Briefs

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
Foreign Intrigue In Estate Planning
The myRa Is Cut Short, But Other Options Abound
6 Ways To Close The Retirement Gap
Are You "Rich" Or Not? New Survey Hits The High Points
Why Aren't More Millennials Moving On Up And Out?
Lending Money? Watch Your Tax Step
How To Spell Estate Tax Relief
Watch Out For "Grandparent Scams"
ETFs Can Provide Some Other-Worldly Benefits To Investors
Four Tax Strategies In Retirement
This Tax-Free Rollover Goes Right To Charity
Why Turn Down An Inheritance?
Do You Deserve A High Grade In Financial Literacy?
Six Tax Items For Small Businesses
How Now, Dow Jones Industrials?
Five Steps When You Inherit Assets

This article was written by a professional financial journalist for William Howard & Co. Financial Advisors, Inc. and is not intended as legal or investment advice.

©2017 Advisor Products Inc. All Rights Reserved.
© 2017 William Howard & Co. Financial Advisors, Inc. | International Place II | 6410 Poplar Avenue, Suite 330, Memphis, TN 38119 | All rights reserved
P: 901-761-5068 | F: 901-761-2217 |
Disclosure | Privacy Policy | Contact Us