The Skyrocketing Cost of Being a Grandparent: Are You Ready for the Financial Commitment?

Grandparents, it’s time to start saving—because it turns out that being a grandparent comes with a hefty price tag!

A recent study reveals that more and more grandparents are dipping into their savings to support their grandkids, and the costs are rising year after year.

How Much Do Grandparents Spend on Their Grandkids?

According to a survey conducted by The Senior List, grandparents are spending an average of $4,000 a year on their grandchildren. But that's not the whole picture—around 10% of the 1,200 grandparents surveyed admitted to spending $10,000 or more annually. From gifts and clothing to vacations and extracurricular activities, it’s clear that being a grandparent is a full-time, expensive job!

Related: Millennials to Become Richest Generation in History in Next 20 Years 

What Are Grandparents Contributing?

The money spent is not just about birthday presents and candy—grandparents are helping with college funds, supporting big-ticket purchases, dining out, and even covering vacation expenses. It’s not just about spending money on things; it's about investing in their grandchildren’s happiness and futures. Despite the financial burden, 96% of grandparents provide some form of support to their grandkids.

But here's the kicker: 1 in 5 feel the pressure to contribute more than they can afford. 10% of grandparents admit to taking on debt or delaying their retirement to help out.

And while it may feel like a financial strain, many grandparents say it’s worth every penny. A whopping 63% of them believe their grandchildren’s happiness justifies any financial sacrifice.

The Price of Love: Sacrificing Retirement

Supporting grandkids comes with sacrifices, and for many grandparents, that means postponing their retirement dreams. Half of the respondents are willing to delay their retirement, while 40% would even come out of retirement to help their grandchildren.

Grandparents don’t just give money—they give time. A study from 2018 showed that the average annual spend was about $2,600. Fast forward six years, and we’re seeing a significant increase to $4,000 per year. That’s a big jump, but it’s not all about the dollar signs. Many grandparents have embraced the role of caregivers, with 16% of them housing one or more grandchildren.

The Relationship Is Priceless

At the end of the day, though, it’s not about the money. Whether it’s through big purchases or small acts of love, grandparents value the time spent with their grandkids more than anything else. After all, who can put a price on seeing a grandchild’s face light up with joy? Despite the growing costs, the emotional rewards make it all worthwhile.

So, if you’re planning on being a grandparent one day, it might be time to start planning your finances too. Between the gifts, the travel, and the occasional financial sacrifice, grandparenting is an investment—but it’s one that comes with priceless returns.