37% of Parents Expect Financial Help From Grandparents

A significant portion of parents with young children, specifically 37%, are anticipating financial assistance from their parents or grandparents within the next year, according to the BMO Real Financial Progress Index. This expectation arises amidst escalating costs associated with raising children, which are placing considerable strain on household budgets across the nation. The BMO report indicates that 82% of American parents perceive the cost of raising children as having "gotten out of control." Furthermore, 86% of these parents report that everyday expenses, including daycare, after-school programs, summer camps, and school supplies, are impeding their ability to save for their children's future financial security. Over three-quarters of parents surveyed stated that financial support from extended family members is crucial for affording opportunities for their children. Robin Growley, BMO U.S. Head of Consumer Products, commented in the report that raising children has become a "major feat of financial engineering," with families struggling to balance immediate spending needs with long-term financial goals. Growley emphasized that a "clear, actionable plan" is the most effective way to alleviate daily financial stress, whether budgeting for basic necessities like diapers or for significant expenses like college dorm rooms.

The financial support from the Baby Boomer generation extends beyond direct monetary contributions. Among the parents who expect to receive assistance, 43% rely on grandparents to provide childcare services. An additional 26% of parents indicated that family members are contributing to their children's future financial well-being by funding savings accounts, such as 529 plans. This trend highlights a notable shift in how American families are navigating the current affordability challenges. Instead of passively awaiting the "Great Wealth Transfer," younger families are actively seeking and receiving help from older relatives. This proactive approach is underscored by data from Care.com's 2026 Cost of Care report, which found that parents are allocating approximately 20% of their annual income towards childcare expenses. A substantial segment of parents, about one in five, are spending over $30,000 annually on childcare. In contrast, the U.S. Department of Health and Human Services defines an affordable childcare benchmark at 7% of family income. Although this benchmark represents a 2% decrease from 2025, the report suggests that the actual spending by many families significantly exceeds this guideline, further necessitating external financial support.