How to Help Your Grandkids Without Jeopardizing Your Own Financial Health

11/05/2025 Written by: APIA Communications

Helping your grandkids financially can be extremely gratifying. It's not surprising that most grandparents help out financially when they can. According to a recent survey by Senior List, about 96% of grandparents offer some level of financial support to their grandchildren. And of those, 10% provide $10,000 or more each year.1

However, the money to support grandkids must come from somewhere. The survey found that about 25% of grandparents were cutting back on their own spending to fund this generosity. 

If the support is ongoing, it can have further financial implications. Grandparents who have yet to retire may need to continue working longer than they had originally planned. Or they may cut back on their own retirement saving. For those already retired, they may be required to spend down their nest egg more quickly than they originally planned, potentially raising their risk of running out of money.

Helping a grandchild with living expenses may require a grandparent to recalibrate their risk tolerance. The biggest problems come when these expenses are not planned for, and grandparents are forced to take short-term actions that place them on shaky financial footing.

The answer isn't to tell your grandkids “no.” Helping them financially can be one of the most rewarding things you can do with your money. But as with any significant financial decision, it should be carefully planned for ahead of time. 

Talk with us about the best and most appropriate ways you can help your grandchildren. Not only can we provide perspective on what has worked well for other families in similar situations, but we can make sure your generosity is accounted for in your long-term plan for financial well-being.

 


1. http://go.pardot.com/e/91522/hout-hurting-yourself-110831b1/96qtr9/2836079327/h/L77uB62EIs52If-V8giFibjXO74h1LOatRZSjmI07Y8

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