October 31, 2022
The role of grandparents has long been to comfort, support, and even spoil their grandchildren. But in a time of rising costs, particularly for education and housing, many grandparents are finding new ways to help-whether through direct financial aid, estate planning, or simply by passing on their hard-earned lessons of financial literacy.
There are generally four categories where grandparents can provide support: Education Expenses, Outright Gifts, Financial Literacy, and Growing a Bond with Their Grandchildren.
Education Expenses
One of the best ways for grandparents to help is to establish a 529 plan. Here are some essential features:
Outright Gifts
Grandparents can help grandchildren through a ‘Crummey’ Trust or an intrafamily loan. Here are some important details:
Financial Literacy
The gift of financial literacy is so important. Here are some lessons to share with the grandchildren:
Growing a Bond with Their Grandchildren
In-person support and being closer to the family can build a stronger relationship between grandparents and grandchildren.
These four categories and ideas help create a rapport with money while building a close relationship with the grandkids.
Here is a final light-hearted message we received from a friend as a reply to one of our emails. Enjoy!
Disclosures
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