2025 Grandparent Spending Report: U.S. Grandparents Give $238 Billion a Year to Grandkids
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September 8, 2025
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Key Findings
- From groceries to tuition, 96% of grandparents (about 60 million people) provide financial help to grandchildren
- 1 in 6 grandparents are financially supporting both their parents and their grandchildren, creating a staggering economic squeeze
- The average grandparent spends $3,917 on their grandchildren each year (among those who give support), totaling $238 billion nationwide
- 39% feel obligated to ensure grandkids “never go without” — even at their own expense
- More than 1 in 10 grandparents have dipped into their retirement savings to help their grandchildren
New data from TheSeniorList.com’s research team tell a story that’s both heartwarming and concerning: America’s grandparents are incredibly generous, but that generosity can come at a cost to their own financial security.
As high inflation continues to squeeze retirees on fixed incomes, and as Americans face the reality that retirement savings aren’t keeping up with longer lifespans, grandparents find themselves caught in an impossible bind. They want to provide for the grandchildren they adore, but they must plan for their own future financial stability.
This year’s findings are based on a survey of 1,200 older adults and build upon the findings from our 2024 study. The data reveal a persistent pattern: grandparents prioritize their families’ needs, even when it jeopardizes their retirement security.
Nearly Every Grandparent Helps Grandkids Financially — To the Tune of $238 Billion Annually
The scope of grandparent financial support remains staggering. Our survey of 1,200 U.S. people aged 55 and older found that 96 percent of grandparents provide some form of financial support to their grandchildren — virtually the same share as in 2024’s findings.
| Estimated number of U.S. grandparents providing financial support | 60 million |
|---|---|
| Average amount grandparents* spend on grandkids per year | $3,917 |
| U.S. collective annual spend on grandchildren | $238 billion |
* Among those providing financial support
This consistency confirms what we discovered last year: financial support from grandparents isn’t a trend — it’s a fundamental part of how American families operate. The annual $238 billion that grandparents contribute represents a massive, often overlooked economic force.
These approximately 60 million American grandparents have become essential to the country’s economic fabric, quietly subsidizing everything from birthday gifts to college tuition. As multigenerational households continue to rise across the U.S., this “grandparent economy” deserves recognition as a significant consumer bloc with unique financial pressures and needs.
The Sandwich Generation Squeeze
Perhaps most striking is our finding that 16 percent of grandparents also provide financial support to their own parents while simultaneously supporting grandchildren. This creates a particularly intense financial squeeze, with these grandparents serving as the economic hub for three generations. Nearly one in 10 grandparents in our study also had grandchildren living with them.
This “sandwich generation” dynamic shows how financial strain for seniors extends far beyond simply funding their own retirement. Many older adults have become active nodes in multi-generational family support networks, managing complex financial responsibilities that pull them in multiple directions.
Where the Money Goes: Beyond Just “Spoiling”
When we examine how grandparents spend their money on grandchildren, the emerging picture goes far beyond occasional treats or holiday splurges. While high-visibility categories like gifts, clothes, and toys dominate the list, essentials like food, housing, and tuition reveal a more complex reality. Many grandparents aren’t just “spoiling” their grandchildren — they’re bridging critical gaps in family finances.
| Which of the following ways do you give your grandchild(ren) financial support or gifts? | Percent of grandparents |
|---|---|
| Gifts for special occasions | 80% |
| Buying clothing or shoes | 62% |
| Entertainment purchases (e.g., toys, movies) | 58% |
| Paying for meals out | 56% |
| Paying for vacations (including travel to see them) | 24% |
| Contribution to savings or college funds | 22% |
| Your grandchild(ren)’s day-to-day expenses (e.g., meals, groceries) | 15% |
| Paying for tutoring or extracurricular activities (e.g., sports, band) | 12% |
| A regular contribution (weekly/monthly/yearly allowance) | 8% |
| Assisting with housing expenses (e.g., rent, mortgage) | 7% |
| Assisting with health care or medical expenses | 6% |
| Tuition payments for school or college | 5% |
| Supporting with large purchases (e.g., buying a car, helping with a down payment for a house) | 4% |
| None of the above | 8% |
*Note: Multiple responses allowed
The fact that 22 percent of grandparents contribute to college savings, averaging $2,473 annually, and five percent help with tuition underscores how grandparents have become integral to education funding in America.
When Help Becomes Harmful
The most troubling finding in our research is how much grandparents sacrifice their financial well-being to support their grandchildren.
| How true are the following statements for you? | Percent of grandparents who said the statement was true for them |
|---|---|
| My grandchild(ren)’s happiness is worth any financial sacrifice I make. | 51% |
| Providing for my grandchild(ren) is one of the most meaningful ways I show my love. | 42% |
| I feel an obligation to ensure my grandchild(ren) never go without, even if it strains my finances. | 39% |
| I prioritize my grandchild(ren)’s needs over my own financial stability. | 30% |
| I feel responsible to support my grandchild(ren) financially. | 23% |
| I’ve felt pressured to give financial support to my grandchild(ren), even when it meant stretching my own financial resources beyond comfort. | 17% |
These numbers reveal a concerning pattern of financial self-sacrifice. Nearly one in five grandparents feel pressured to give even when it creates financial strain, and female respondents were significantly more likely than men to report feeling this pressure.
Perhaps most alarming, 11 percent of grandparents have already dipped into their retirement savings or accounts to help their grandchildren, and 51% would consider doing so! This figure was higher among grandparents aged 55-64 compared to those 65 and older, highlighting the particular squeeze faced by pre-retirement grandparents who are still trying to build their nest eggs.
| Grandparents: Which of these would you be willing to do to support or give to your grandchild(ren)? | I have done this | I would consider doing this | I would not do this |
|---|---|---|---|
| Live a more frugal lifestyle | 18% | 55% | 27% |
| Pull money from my savings or retirement account | 11% | 51% | 38% |
| Take on debt | 6% | 28% | 67% |
| Retire later | 6% | 42% | 53% |
| Co-sign for home, auto, or other loans | 2% | 34% | 64% |
| Come out of retirement | 2% | 37% | 61% |
| Refinance my home | 2% | 20% | 79% |
The implications are profound when we consider that, according to the Government Accountability Office, nearly half of Americans over 55 have no retirement savings. For grandparents with savings, depleting these funds for current family needs could create devastating financial consequences in their later years.
The Road Ahead: Can Grandparents Maintain Their Generosity?
Despite the financial pressures, the emotional rewards of grandparent giving remain strong. Seventy-five percent of grandparents report that their grandchildren appreciate their support, and most continue to see themselves as providers of love and stability in their grandchildren’s lives.
However, this generosity comes with mounting risks. With many grandparents already dipping into savings, some considering refinancing their homes, and others contemplating taking on debt to help their families, the long-term sustainability of current giving patterns is questionable.
The challenge will be preserving the grandparent-grandchild relationship while protecting older adults’ financial security. As the massive Baby Boomer wealth transfer — an estimated $84 trillion expected to flow to younger generations by 2045, according to Cerulli Associates — begins earnestly, grandparents’ role as financial supporters may need to evolve.
Financial advisors, family policy leaders, and consumer brands will increasingly need to address the unique challenges of the “grandparent economy.” This might include developing financial products designed explicitly for multi-generational giving, creating educational resources about sustainable grandparent support, or advocating for policy changes that help preserve family connections and retirement security.
Methodology
This study was conducted in June 2025, surveying 1,200 U.S. adults aged 55 and older. Four hundred thirteen respondents had at least one grandchild. The survey included multiple-choice questions, matrix scales, and open-text responses to capture both quantitative data and qualitative insights. Results were weighted to reflect U.S. demographics for income, age, and gender distribution.
The Senior List is committed to providing research-based insights into the financial realities facing America’s older adults. This study represents the second annual examination of grandparent spending patterns and their impact on retirement security.