6 Ways Grandparents Overspend on Their Grandkids

Sure, you want to spoil them — but don’t let it run down your nest egg

Beth Braverman,

AARP

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Published December 29, 2025

an illustration shows an older adult woman handing out cash to a line of three kids, one with tablet device, one with a flute and one with a basketball

Michelle Kondrich

Many grandparents love to dote on their grandchildren. But that indulgence has a price tag, and it’s a lot higher than it used to be.

“Things are way more expensive than they were 30 or 40 years ago,” says Pedro Silva, principal partner at Apex Investment Group, a financial planning firm in Hudson, Massachusetts. Decades ago, “kids didn’t do as much stuff, and they didn’t have cellphone subscriptions and Netflix and laptops and iPhones,” he says.

According to a June 2025 survey by SeniorList, a resource and reviews website for older adults, 96 percent of U.S. grandparents provide financial help to their grandkids, to the tune of more than $3,900 a year, on average.

The poll of 1,200 Americans ages 55 and older found that 17 percent of grandparents felt pressured to contribute more than they could afford, and 11 percent said they’ve withdrawn money from their savings or retirement accounts to help their grandkids financially — a step that can have lasting consequences.

“I think grandparents need to focus on grandparents first,” says Mike Lynch, director of applied insights at Hartford Funds, an asset management company headquartered in Wayne, Pennsylvania. “Rising costs and longer life expectancies are factors to consider.”

Here are six hidden expenses that can cause grandparents to spend beyond their means.

1. Impulse purchases

It’s hard to say “no” to your grandkids. What’s one more souvenir from the gift shop at the zoo, or an extra treat thrown into your grocery cart when you see your grandchild’s favorite candy at the supermarket?

Here’s the rub: These kinds of unplanned purchases can slowly take a toll on your budget.

How to save: Take time to determine how much you can afford to spend on your grandchildren annually, and build that amount into your budget.

“Consider creating and automatically funding a separate bank account” for spending on grandkids, suggests Indivar Dutta-Gupta, founder and CEO of Blue Lotus Strategies, a Washington, D.C.-based policy and strategy consulting firm.

2. Technology

According to the Entertainment Software Association, 76 percent of children asked for video games as holiday gifts in 2024, and more than 60 percent requested other electronic devices, such as cellphones and smartwatches. Many grandparents are drawn to buying electronics for their grandkids, especially devices like tablets or smartphones that can help them stay connected.

How to save: Young children don’t need the latest smartphone or gaming system. To save money, consider purchasing older or refurbished models for your grandkids.

3. Fees and equipment for sports and activities

Families involved in youth sports spend an average of $1,016 to participate, a 46 percent jump over the past five years, according to the Aspen Institute’s 2024 National Youth Sports Parent Survey. Sometimes, grandparents step in to help with the costs.

“Offering to pay for sports, for soccer cleats or skis or whatever, that’s often a huge help to the adult children,” Silva says. But sports equipment and fees can take a big bite out of your wallet if you’re not careful.

How to save: Rather than sponsoring every sport or activity, pick one or two to support, suggests Pam Krueger, founder and CEO of Wealthramp, a service that connects people with fee-only financial advisers.

“Maybe it’s the soccer cleats, the recital costume or the gas for away games,” she says. “That way, you’re part of the fun, but you’re not the main sponsor.”

4. Child care

Costs for child care are soaring. In 2024, the average annual cost of child care for one child was more than $13,000, according to a 2025 report from the nonprofit group Child Care Aware of America, and many providers charged significantly more.

These rising costs have led some grandparents to provide hands-on care for their grandkids, with some scaling back their time at work to do so, cutting into their income.

How to save: Krueger recommends setting expectations up front for how many child care hours you’re able to put in. This can help prevent you from straining your bandwidth and your finances to care for your grandkids.

5. Babyproofing supplies

Grandparents who regularly watch or babysit young grandchildren in their own homes may face another hidden expense: babyproofing their space.

According to research from Safewise, a company that tests and reviews home safety and security products, babyproofing a typical two-bedroom home with cabinet locks, window guards and other items costs anywhere from $252 to $780.

How to save: Before prepping your home for very young grandkids, determine what supplies you really need, shop around for the lowest prices and consider buying certain products in bulk, like electrical-outlet covers and safety locks for toilets.

6. Travel

Many out-of-town grandparents view trips to visit their grandkids or vacations with them as an opportunity to strengthen their relationships and create lasting memories. More than 70 percent of grandparents have taken a multigenerational trip with their family in the past three years, according to the 2025 U.S. Family Travel Survey by the nonprofit Family Travel Association and the New York University School of Professional Studies.

Krueger says it’s easy to slip into “grandparent mode” during such trips, where your spending limits go out the window. “You’re paying for experiences. You’re paying for memories you hope will stay with your grandchildren forever,” she says. “Those little things sneak up — the extra cash you hand them for energy drinks, matching sweatshirts, last-minute ticket upgrades to WaterWorld.”

How to save: Krueger recommends being intentional about spending when traveling with grandchildren. Before the trip, decide which experiences are worth splurging on, whether that’s a theme park day or a snorkeling trip, and factor them into your budget. “You want to avoid being surprised later by how much the little extras cost,” she says.

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Beth Braverman is a contributing writer who has covered shopping and personal finance for more than a decade. Her work has appeared in Consumer Reports, CNNMoney.com, CNBC.com, and dozens of other outlets.