From the September 2009 issue of Boomer Market Advisor • Subscribe!

September 1, 2009

Grandparents give billions

The amount that boomer grandparents are capable of handing down makes President Obama's 2009 stimulus look like lunch money. On average, two-thirds of grandparents age 45 and older bestowed more than $1,700 per year over the past five years, or about $370 billion total so far, to grandchildren under age 25.

Where did the money go? According to the MetLife Mature Market Institute (which did the study), 40 percent was for general purposes and 26 percent went toward education. Eighty-three percent of grandparents gave cash.

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