For millions of American families, grandparents aren’t just giving birthday money—they’re quietly helping cover the costs that can throw a household off balance.
Nine in 10 Are Providing Financial Help
A 2026 AARP study found that 90% of grandparents provide financial support to their grandchildren. The average is $2,654 a year across all grandchildren.
It’s Not Just About Gifts
Some of that money goes toward birthdays and holidays, but grandparents also help with clothing, food, school supplies, childcare, camps and family travel. About 41% provide help with basic necessities.
Emergencies Are Part of the Equation
AARP found that 8% of grandparents help pay for medical, dental or mental-health care. That kind of support can matter when an unexpected bill arrives and a family needs help quickly.
Education Is Another Big Expense
About 23% of grandparents spend money supporting their grandchildren’s education and activities. For some families, that can mean helping with costs that might otherwise become a major financial burden.
The Total Adds Up Fast
Across the country, grandparents provide an estimated $172 billion in direct financial support every year. That’s money flowing through families that doesn’t always show up as a formal financial arrangement.
They’re Helping in Other Ways, Too
Money is only part of the picture. AARP found 69% of grandparents provide care, averaging more than 500 hours annually among those who do. Together, financial support and unpaid caregiving amount to an estimated $903 billion in annual contributions.
Sources
- AARP Research — Powering Families: The Essential Role of Grandparents in Care, Connection and Support, 2026
- AARP — Grandparents Provide $731 Billion in Unpaid Care of Grandchildren, 2026
- AARP Research — American Grandparents Help Young Adults Grow and Thrive, 2025
