Grandparents Spend $27.5 Billion Per Year On Grandkids

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SACRAMENTO, Calif. - A new survey shows that 56 million US grandparents spend, on average $27.5 billion nationwide on their grandchildren each year. The study also says they'd spend more if they could according to a study conducted by two California State University, Sacramento professors on behalf of a financial services company.

SACRAMENTO, Calif. - A new survey shows that 56 million US grandparents spend, on average $27.5 billion nationwide on their grandchildren each year. The study also says they'd spend more if they could according to a study conducted by two California State University, Sacramento professors on behalf of a financial services company.


They call it the Grandparent's Cost Index.


According to the U.S. Census Bureau, more than 56 million grandparents reside in the United States. The purpose of the survey was to examine the amount of money that Grandparents spend on their grandchildren, what it is they spend their money on, and whether they feel like they are spending all they want or can on their grandchildren.


Survey author Professor Dennis H. Tootelian, Ph.D. says, "The economic impact of Grandparent's spending is huge, and it continues to grow as the spending power of these Grandparents increases. Grandparents will often borrow to spend more money on their grandchildren."


According to a study commissioned by the National Reverse Mortgage Lenders Association, age 62+ U.S. households, which comprise the majority of grandparents, have $4.3 trillion tied up in their home equity. If they were able to tap into even a small percentage of this equity, it would have a big impact on the nation's economy. According to the study, additional spending could reach up to $56.2 billion.


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