Grandparents Spending More on Grandkids
My son’s grandparents dote on him and never waste an opportunity to get him clothes, toys, or anything else that they think he wants or needs. As the number of children per family decreases, grandparents can afford to give more and better. And as any parent can understand, they sometimes go overboard (although I’m personally not complaining just yet). Parents who are trying to keep their kids from getting spoiled by materialism are not getting any help from retailers who are gearing up to tap grandparents’ spending potential.
From the Evansville Business Journal, June 12, 2005:
Expect an explosion of stores and ads geared toward Grandma and Grandpa’s wallets.
The spending potential is huge. In 2002, baby boomers’ after-tax income was $2.5 trillion, and it’s estimated that grandparents spent $23 billion on their grandchildren that year. By 2007, baby boomers’ post-tax income is estimated to reach $2.6 trillion.
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With wealthier grandparents willing to spend, the segment has attracted the attention of other industries as well, particularly travel and financial services, said Linda Scovill, publisher of Fifty Plus, a monthly publication based in Durham.
“They’re spending money on the intangibles,” she said.
Even banks are targeting grandparents. Wachovia has recently been advertising its 529 college savings account specifically to grandparents.
My family and I are grateful for the help and support we’re getting from grandparents. I hope everyone is as lucky as we are.
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