Grandparents Give $172 Billion A Year To Their Families And 90% Help Financially, Spending More Than A Typical Monthly Social Security Check

Jane Clark

2 hours ago

Think about the last time a grandchild asked for something. A pair of shoes. A trip to the zoo. A little help with a school fee. If your instinct was to say yes before you even checked your wallet, you are in very good company.

A new report from AARP puts a number on that generosity, and it is a big one. In its report, Powering Families: The Essential Role of Grandparents in Care, Connection and Support, announced June 15, 2026, AARP found that grandparents provide $172 billion a year in direct financial support to their families.

The Numbers Behind The Giving

The report is based on a nationally representative survey of more than 3,300 grandparents age 35 and older, conducted in late 2025. Here is what AARP found.

Grandparents provide $172 billion a year in direct financial support.
They also provide an estimated $731 billion in unpaid care, which brings the total to about $900 billion, a figure AARP calls the “grandparent economy.”
90% of grandparents provide financial support.
69% provide care, averaging more than 500 hours a year.
79% find the experience very or extremely fulfilling.

That last number tells you something important. This is not a story about resentment. Nearly eight in ten grandparents say the role brings deep satisfaction, and that is worth keeping in mind as we talk about the costs.

The Number That Made Us Stop

One finding in the report deserves a closer look. Grandparents report spending $2,654 a year on all of their grandchildren combined. For comparison, the average monthly Social Security benefit for a retiree is $2,071.

Read that again. The yearly spending on grandchildren is more than an entire typical monthly Social Security check. For a retiree living on a fixed income, that is real money, and it is easy to see how it can add up without anyone noticing.

Of course, those are two different kinds of figures. One is what grandparents say they spend over a year, and the other is an average monthly benefit. Still, putting them side by side helps show how much of a budget these gifts can take up, especially for someone who is not working.

Giving From The Heart, Not Over The Edge

Many grandparents would say that spoiling the grandkids is the whole point. We are not here to tell anyone to stop. We are here to say that generosity works best when it fits the budget, and a few simple habits can protect both your retirement and your relationships.

Set a yearly giving budget. Decide in advance how much you can comfortably give, then split it however you like among holidays, birthdays and special requests.
Cover essentials first. Make sure your own housing, food, health costs and savings are taken care of before you open your wallet for extras.
Be honest about limits. A loving “I can do this much” is far better than overextending and worrying later.
Treat fairness as a family value. If you help one grandchild, think about how you will handle the others, so no one feels left out.
Consider a shared plan. Talking with your adult children about what you can and cannot do prevents surprises and hard feelings.

Gifts That Do Not Cost A Fortune

There is good news for anyone trying to stretch a dollar. Children rarely remember the price tag. They remember the afternoon baking cookies, the stories told on the porch and the card game that got a little too competitive.

Time may be the most valuable thing you have to give, and the report shows that grandparents already give plenty of it. Think about offering memories in place of more things: a standing weekly dinner, a book you read together every visit, a recipe you pass down.

And there is a decluttering bonus. Every toy, gadget and trinket you bring home ends up somewhere in a house, perhaps yours, perhaps your children’s. Fewer things means fewer arguments over storage and less to sort someday.

Why The Time Matters Too

It is easy to focus on dollars, but the report makes clear that money is only part of the picture. Grandparents who provide care report averaging more than 500 hours a year, which is a lot of mornings, afternoons and school pickups. That is time spent keeping the family running, and it is a gift many parents could not replace.

It also means a grandparent’s contribution is often bigger than any receipt shows. If you are the one who babysits, drives, cooks and also covers the occasional bill, you are giving on several fronts at once. It is perfectly fair to take stock of the whole load, not just the checks, when you decide what you can sustain.

A good rule of thumb is to ask yourself, once a year, whether the way you are helping still feels good. If it does, wonderful. If it has started to feel like pressure, that is a sign to adjust, and a loving family will want to hear about it.

Talk About It Early

Money is a delicate subject in any family, but the AARP findings show that grandparents are carrying a real share of the load. If you are a grandparent, give yourself permission to set boundaries. If you are a parent, be thankful, and ask what you can do to lighten the burden rather than assuming it will always be there.

Everyone benefits from a plain conversation. A grandparent who knows their limits can give happily and without strain. A family that understands what grandparents are contributing can say thank you in ways that matter.

The research shows that grandparents give a great deal, in dollars and in hours, and most find it deeply rewarding. A thoughtful plan can help keep that joy going for many years to come.