Powering Families: The Essential Role of Grandparents in Care, Connection and Support

The “grandparent economy” — grandparents’ financial support and care of their grandchildren — is a powerful force in the broader U.S. economy, totaling more than $903 billion annually, according to a new AARP Research study. Yet grandparents’ contributions and roles in families extend far beyond quantifiable estimates. In 2025 AARP surveyed nearly 3,300 grandparents nationwide, our first comprehensive study on grandparenting since 2018, to bring to light the essential roles grandparents today play in U.S. families through care, connection, support, and intergenerational learnings. Study results are presented as an interactive data story where readers can immerse themselves in the experiences of grandparents today.

One in 3 U.S. adults age 35-plus (35%) and half of adults age 50-plus (50%) are grandparents, according to AARP Research analysis of the 2023 Survey of Income and Program Participation. There are about 65 million grandparents in America today, a decline from the roughly 70 million reported in AARP’s 2018 Grandparents Survey, reflecting broader demographic shifts as fewer adults have children and many do so later in life. Grandparents are a major presence in American families.

Grandparents: By the numbers

• Grandparents with great-grandchildren: 18%
• Grandparents with step-grandchildren (includes great-grandchildren): 19%
• Grandparents with adoptive grandchildren (includes great-grandchildren): 6%
• Mean number of grandchildren: 4.9
• Mean number of great-grandchildren: 3.7

Most grandparents feel joyful and fulfilled but have concerns about the future, particularly on affordability.

In the survey, most grandparents express high levels of joy (83%) and fulfillment (80%) with their grandparenting experiences. At the same time, grandparents are anxious about how the social issues of the world will impact their grandchildren, with affordability rising to the top of the worry list. Grandparents’ biggest concerns include the future cost of living and affordability (45% name this as a strong concern), gun violence (30%), educational quality and access (28%), and economic instability (26%).

Against a backdrop of rising costs, one 75-year-old grandmother and great-grandmother in the study said she makes sure her grandchildren know, “You can go shopping in my pantry, and you can take home whatever you need.”

Where grandparents live in relation to their grandchildren is one of the strongest factors shaping relationships.

Roughly one-fourth (28%) of grandparents have lived together with a grandchild at any point in the past year, whether long term (13%), short term (14%), or for an unknown duration (1%). About 1 in 10 (11%) currently live together. Grandparents who share a home with grandchildren report higher fulfillment, satisfaction, and joy in their grandparenting experience, but also more challenge. 

In addition to in-person interactions with their grandchildren, grandparents are embracing digital technology to stay close.

• Three-quarters of grandparents (76%) say electronic technology like texting and video calls, social media, photo apps, email, and group chats are a primary way they stay connected.
• Texting is a particularly important way older grandparents stay in touch: half (50%) of grandparents 80-plus text with their grandkids.

The “grandparent economy” is America’s quiet safety net.

Grandparents are not just family members: collectively, they are also an economic engine and a stabilizing force in American life.

Grandparents devote, on average, the equivalent of 12.5 weeks of full-time work to taking care of their grandchildren each year. Overall, grandparents provide an estimated $731 billion¹ in annual unpaid care of grandchildren, a labor contribution that families and the broader economy rely on but do not formally count.  Taken together with the more than $1 trillion economic value of unpaid care provided by adults to other loved ones needing help due to disability, aging, or illness, the broader care economy is worth more than $1.7 trillion. This essential yet largely unpaid infrastructure reduces strain on public systems and helps families stay afloat.

Caring for their grandchildren is often a joy but can deplete energy: 59% say caregiving energizes them, 13% say they feel physically taxed by it, and 26% say that both are equally true for them. The amount of care provided also varies across backgrounds, with AAPI grandparents the most likely to say they provide daily or almost-daily care of grandchildren.

When asked to describe in their own words why they provide care of their grandchildren, top reasons related to parents’ jobs or other responsibilities (38%), a desire to simply spend time with and show love to their grandchildren (35%), or passing down values, guidance, and mentorship to the next generation (9%) — the last of which was more likely to be named by grandparents who immigrated to the United States (17%).

Grandparents are an economic engine, but more strained than in 2018.

In addition to hours spent caring, grandparents are also contributing with their dollars. Nine in 10 U.S. grandparents provided financial support to their grandchildren in the last year. On average, grandparents reported spending $2,654 per year on all grandchildren combined, compared to $2,562 in our 2018 grandparenting study. While the nominal figure has risen slightly, it has not kept pace with inflation: the 2018 figure would be roughly $3,240 in today's dollars, meaning grandparents' real spending has declined.

Today, the average amount grandparents give to support grandkids annually ($2,654) is more than the average Social Security monthly benefit of roughly $2,000.

About a quarter of grandparents (23%) today spend money to support grandchildren’s education and activities. With rising day-to-day living and tuition costs, this intergenerational giving can make a significant impact. For example, grandparental spending represents a portion of the over $13 billion that 50-plus households collectively give to college students to help smooth education costs.

Grandparents collectively contributed over $172 billion² in direct financial support to grandchildren, a decrease from the $179 billion estimated in AARP’s 2018 grandparenting study.

Together, these contributions total $903 billion annually ($172 billion in direct financial support plus $731 billion in unpaid care), making the “grandparent economy” a quiet but powerful safety-net for U.S. families.

For more detailed study results, please visit our interactive data story about the experiences of grandparents today.

Methodology

These findings are based on a survey conducted November 18 to December 22, 2025, among U.S. grandparents age 35-plus. The sample of 3,283 grandparents (inclusive of step, adopted, and great grandchildren) included oversamples of African American/Black grandparents (491 completions), Asian American and Pacific Islander grandparents (475 completions), and Hispanic/Latino grandparents (499 completions) to ensure adequate sample sizes for analysis. This was a mixed-mode study (online nonprobability panel + CATI), with 2,962 interviews completed online and 321 by phone. Interviews were completed in English, Spanish, and Mandarin. Weights were computed using a two-stage raking (Iterative Proportional Fitting) process. All population benchmarks were derived from the U.S. Census Bureau 2024 Survey of Income and Program Participation (SIPP). Population benchmarks include: age, gender, region, race/ethnicity, education, place of birth, language spoken at home, and self-rated English proficiency. In addition to the nationwide survey, the study included 15 in-depth follow-up interviews with grandparents, conducted online in February 2026.

For more information, please contact Sarah Kerman at SKerman@aarp.org or Angela Houghton at AHoughton@aarp.org. For media inquiries, please contact media@aarp.org.

_{¹ This estimate is based on a calculation of average annual caregiving hours for each living arrangement times an average national hourly rate of $22.15 for childcare services (Bureau of Labor Statistics, November 2025).}

_{² The direct financial support total estimate is based on the number of grandparents times the average spend (65 million x $2,654).}