Grandparents: Last of the Big Spenders

Grandparents are one of the few segments of the population that still has the time, money, and motivation to shop. According to a survey by AARP, they like to shop for their grandchildren.

The majority of grandparents--53 percent--spent at least $250 on grandchildren in the past year. One in four spent at least $1,000, and one in ten spent at least $2,500. Only 4 percent of grandparents did not spend any money on grandchildren. Among the spenders, nearly all bought birthday and holiday gifts for grandchildren. A substantial 53 percent helped their grandchildren with educational expenses. The 55 percent majority of grandparents say the current economy has had no affect on how much they spend on grandchildren. Other facts about grandparents...

• The average grandparent has 6.9 grandchildren (including great-grandchildren) 
• 61% say they do not see grandchildren who live furthest away often enough
• 39% communicate with grandchildren using technology such as email, texting, or Facebook
• 49% have adult grandchildren
• 76% were younger than 60 when their first grandchild was born
• 62% are retired

Source: AARP, Insights and Spending Habits of Modern Grandparents