Last Sunday was Grandparents’ Day, and a new report states that grandparents in the nation are increasingly providing support for their families and have taken on the role of a financial safety net for their children and grandchildren.
In the report “Grandparents Investing in Grandchildren: The MetLife Study on How Grandparents Share Their Time, Values and Money,” it is revealed that 20 percent of grandparents live in multigenerational households and 13 percent of them provide care for at least one grandchild.
Sixty-two percent of grandparents have provided financial support to grandchildren in the past five years, averaging $8,289, primarily for investments and education. Forty-three percent of those surveyed attributed the economic downturn as the reason for monetary support; 34 percent are helping despite their belief that such assistance is having a negative effect on their own finances.
“The good news is that both in person and via technology, grandparents are forming deep connections with their children,” said Sandra Timmermann, director of the MetLife Mature Market Institute. “The bad news, however, is that grandparents are making financial sacrifices that could cost them when they find themselves short of the savings they need to support themselves in retirement. There is a need to balance what they’re giving with what they can afford to give. It’s recommended that grandparents seek financial advisors and education resources to guide them through the process of giving.”
Grandparents also say it’s important that their grandchildren maintain their standard of living; 67 percent are optimistic their grandchildren will live as well as they have–believing family values, parental influence and support will play a role. Those who are pessimistic on this point blame external factors like the economy, government and society.
“The importance of grandparents remains as it has for centuries: They are a source of family history and values for their grandchildren,” said Donna Butts, executive director of Generations United. Even in today’s quickly changing world, she said, grandparents play a distinct role in guiding their grandchildren on integrity, the importance of education, community service and the need to be engaged in civic affairs by voting.
Other findings in the study revealed that grandparents have an average of four grandchildren. Of the grandparents living in multigenerational households, 30 percent have grandchildren living with them and 35 percent live with an adult child only.
The majority of grandparents have at least one grandchild living within 50 miles, and 8 percent live in the same household as at least one grandchild. Long-distance grandparents are still a significant segment; 39 percent have a grandchild more than 500 miles away.
