Grandparents in the U.S. are increasingly taking on the role of financial safety net for their children and grandchildren, even though in some cases it may hurt their own financial stability, according to a new survey.
The survey, entitled Grandparents Investing in Grandchildren: The MetLife Study on How Grandparents Share Their Time, Values and Money, was conducted by the MetLife Mature Market Institute.
Americans who feel financially squeezed by a slowed economy and high unemployment are turning to their parents and grandparents for support. Twenty percent of those grandparents surveyed are living in multi-generational households and 13 percent of grandparents provide care for at least one grandchild.
Sixty-two percent said they have given financial support to grandchildren in the past five years, averaging $8,289, primarily for investments and education. Thirty-four percent said they're helping out financially despite their belief that it has a negative effect on their own finances.
Besides passing money on to their children and grandchildren, grandparents also indicated that they're eager to impart a value system to their progeny, with the following ideals topping the list: honesty (88 percent of respondents), good behavior (82 percent), the importance of voting (73 percent), self-sufficiency (70 percent), the importance of higher education (69 percent) and good health habits (68 percent).
Grandparents say it's important that their grandchildren maintain their standard of living. Sixty-seven percent of grandparents surveyed said they're optimistic that their grandchildren will live as well as the grandparents themselves have and believe that family values, parental influence and support will play a role.
The researchers also determined that grandparents are making added use of social communication tools to interact with their grandchildren, albeit reluctantly in some cases. Though they prefer face-to-face communication and the traditional phone call, 12 percent say they are using Skype, 31 percent are using e-mail and 24 percent are using Facebook. None reported communicating via Twitter. The majority of grandparents living within 50 miles of their grandchildren see them in person at least a few times a month.
The findings were based on an online survey conducted by Harris Interactive from April 4 through 11 on behalf of the MetLife Mature Market Institute. The national sample included 1,008 grandparents age 45 or older. The study was done in conjunction with Generations United, an advocacy organization focused on improving the lives of children, youth and older people through intergenerational strategies, programs and public policies.
--Jim McConville