Grandparents who keep their grandchildren afloat

[RAE]

Recent article in The Atlantic about how some grandparents feel obligated to provide financial support to their grandchildren, who are struggling with expenses for education and other things. Here is a quote from the article:

"Intergenerational gift-giving has grown substantially in the past decade or so. One analysis of Census Bureau data found that between 1999 and 2009, the amount that Americans over 55 gave to their adult children increased by more than 70 percent. During that period, the amount given specifically for primary- and secondary-school tuition and school supplies—that is, to be spent on the grandkids—nearly tripled."

https://www.theatlantic.com/family/archive/2019/01/grandparents-giving-money/581581/

I can see us contributing a fair amount to our two grandkids eventually for their education, as their mom (who is single) is not in a position (financially) to cover all of those costs.

 

[MBAustin]

I think this will become more common as many in the baby boomer generation settle into their later retirement years very comfortably and they want to share with their families without waiting for inheritance to kick in.

 

[Jerry1]

We’re going to struggle with this. We want to help and see the grandkids get into and through college but the timing will be such that we won’t be on the downward glide path. That time went you’re very confident you’ll out live your money. We will certainly do what we can as we value our grandkids and we value an education which includes a trade school if that’s the path that suits them.

 

[REWahoo]

We’re going to struggle with this. We want to help and see the grandkids get into and through college but the timing will be such that we won’t be on the downward glide path.

Looking back, one of the best decisions DW and I made during the accumulation phase was purchasing two years of tuition and fees for each of our five grandchildren. The Texas Tomorrow Fund, a guaranteed tuition plan good at any state U in TX was, at the time, a huge bargain.

Now that we are retired and the first of the five is in college, we find we have no urge to help out financially as we've already done our part.

 

[Chuckanut]

FWIW, I have decided to spend part of my kid's inheritence helping them today. And that includes my grand-kids. Like many, I want to see the smile on their faces and be around to receive a bit of appreciation.

 

[brett]

We have an edu fund for each of our grandchildren. Started them at birth.

Each of our wills provide for money off the top to each grandchild for post secondary education. We will adjust both as time passes.

No matter what transpires in the future we want them to be able to get the education/training that they want or need without any financial burden or huge student loans at the end of the process.

 

[aja8888]

We pretty much put of granddaughter through 4 years of college as her single mom could not afford to. She also applied for and received grants and scholarships along the way. She's out now and working full time and supporting herself.

 

[Bamaman]

How'd you like to raise a 7 year old completely--with no assistance from the mother. I love it. My wife's been raising kids 53 years, and she's a little less than thrilled to be doing homework for a fifth time. She starts college when we're 78 and 80.

Our girl is top of her class in a competitive private school and doing just great.

 

[Teacher Terry]

Bam, whenever I see your posts on her she is very lucky to have you both. I hate how people get addicted to drugs and turn away from their responsibilities. I have one son like that but at least he never had any kids.

 

[CardsFan]

How'd you like to raise a 7 year old completely--with no assistance from the mother. I love it. My wife's been raising kids 53 years, and she's a little less than thrilled to be doing homework for a fifth time. She starts college when we're 78 and 80.

Our girl is top of her class in a competitive private school and doing just great.

Having read many of your posts about this situation, my hat is off to you. I hope your (grand)daughter is successful in her future activities. You and your DW have taken on a challenge that many would not take, but that is what a loving family does.

 

[jollystomper]

No grandkids yet, but one of my nieces, who has 4 kids under the age 7, requested this Christmas that instead of toys, would the family (their parents, aunts, and uncles) consider donating to the 529 plans she and her husband have set up. I am fine with this. They are both lawyers (though my nephew-in-law has decided to leave corporate law and go into the ministry), and can get their kids all the toys they want, if necessary.

 

[Souschef]

FWIW, I have decided to spend part of my kid's inheritence helping them today. And that includes my grand-kids. Like many, I want to see the smile on their faces and be around to receive a bit of appreciation.

+100! My late mom said she would rather give it when she was alive to see the gratitude.
I have funded 529's for 3 grandchildren. I also distribute part of my RMD's to our four sons. Unfortunately, there will be less this year because of taxes, both due and estimated.

 

[audreyh1]

Recent article in The Atlantic about how some grandparents feel obligated to provide financial support to their grandchildren, who are struggling with expenses for education and other things. Here is a quote from the article:

"Intergenerational gift-giving has grown substantially in the past decade or so. One analysis of Census Bureau data found that between 1999 and 2009, the amount that Americans over 55 gave to their adult children increased by more than 70 percent. During that period, the amount given specifically for primary- and secondary-school tuition and school supplies—that is, to be spent on the grandkids—nearly tripled."

https://www.theatlantic.com/family/archive/2019/01/grandparents-giving-money/581581/

I can see us contributing a fair amount to our two grandkids eventually for their education, as their mom (who is single) is not in a position (financially) to cover all of those costs.

I know several grandparents including close relatives who are raising a grandchild! Because their child parent is hopeless just can't be relied upon.

 

[audreyh1]

We have no children or grandchildren, so financial gifts go to my siblings. They are only a few years younger than I so I prefer to gift what I can while I am alive as they aren't getting any younger either!

 

[Chuckanut]

How'd you like to raise a 7 year old completely--with no assistance from the mother. I love it. My wife's been raising kids 53 years, and she's a little less than thrilled to be doing homework for a fifth time. She starts college when we're 78 and 80.

Our girl is top of her class in a competitive private school and doing just great.

As a former teacher, I saw a lot of that. Mostly due to horrible behavior choices made by the parents. Very sad. Thankfully, these children have grandparents like you two.

One question, have you made plans for what might happen if both of you are unable to continue your parenting jobs? Raising a teenager in one's 70's may be problematic.