Grandparents generous with money, but not advice, report says

Grandparents have been shelling out cash to help their grandchildren, but not advice to accompany the assistance, according to data from MetLife Mature Market Institute.
JUL 14, 2009
Grandparents have been shelling out cash to help their grandchildren, but not advice to accompany the assistance, according to data from MetLife Mature Market Institute. The Westport, Conn.-based research institute, which is affiliated with New York-based MetLife Inc., performed an online poll of 1,077 adults over age 45 who have grandchildren under the age of 25. Fully 63% of the polled grandparents said that they have provided either financial assistance or monetary gifts to their grandchildren in the last five years. Those who donated gave an average of $8,661 in that period or an estimated $370 billion in total support. Forty percent of that aid went toward general financial support, while 26% covered educational expenses and 21% of the money went toward major life events. As the economy took a dive, grandparents become more generous: 26% said they were providing more assistance than in the past. However, much of that money comes without any advice: 68% of the polled adults said that they aren’t providing any financial guidance to their grandchildren. Of the remaining 32% who do advise their grandchildren, the most common suggestions have been to “start saving early in life” and “don’t get into too much debt.” “While [grandparents] clearly want to make sure their grandchildren are financially secure, only a small percentage of those polled said they have talked to their grandchildren about the importance of hard work, saving for a rainy day and intelligent use of credit,” Sandra Timmerman, director of the MetLife Mature Market Institute, said in a statement. The financial planning adages of “make sure you have basic financial security,” including insurance, and “don’t put all of your financial eggs in one basket,” were the third and fourth most popular suggestions, respectively. Lower-income grandparents are also more likely to talk to their grandchildren about avoiding large debts and maintaining basic financial security: 83% of the polled adults who make less than $35,000 a year have warned their grandchildren to avoid heavy debts. By comparison, 65% of those grandparents who earn between $50,000 and $74,999 per year have had this talk with their grandchildren.

Latest News

Judge OKs more than $90 million in settlement money for GWG investors
Judge OKs more than $90 million in settlement money for GWG investors

Mayer Brown, GWG's law firm, agreed to pay $30 million to resolve conflict of interest claims.

Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs
Fintech bytes: Orion and eMoney add new planning, investment tools for RIAs

Orion adds new model portfolios and SMAs under expanded JPMorgan tie-up, while eMoney boosts its planning software capabilities.

Retirement uncertainty cuts across generations: Transamerica
Retirement uncertainty cuts across generations: Transamerica

National survey of workers exposes widespread retirement planning challenges for Gen Z, Millennials, Gen X, and Boomers.

Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future
Does a merger or acquisition make sense for your firm? Why now is the perfect time to secure your firm’s future

While the choice for advisors to "die at their desks" might been wise once upon a time, higher acquisition multiples and innovations in deal structures have created more immediate M&A opportunities.

Raymond James continues recruitment run with UBS, Morgan Stanley teams
Raymond James continues recruitment run with UBS, Morgan Stanley teams

A father-son pair has joined the firm's independent arm in Utah, while a quartet of planning advisors strengthen its employee channel in Louisiana.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave