Financial Concerns Shifting to Grandchildren

3/1/2022

“If I knew how much fun it was, I would have done it first” is a cute saying that many grandparents are known to say about the experience of becoming a grandparent.  Being a grandparent comes with all the fun but none of the parental responsibility. It does however come with worry. Grandparents worry about their grandchildren and children all the time, but has that worry changed over time?

Spectrem Group asks investors about their personal and national concerns every year, and there has been a gradual shift taking place in the concerns of wealthy investors. Eight years ago, 47 percent of investors were concerned about the potential of a family health catastrophe, while now only 34 percent share that same concern. A similar shift has occurred with regard to concerns about maintaining one’s current financial position. Fifty-four percent of investors were concerned with that topic in 2014, while only 43 percent worry about that currently. 

Another shift that is becoming more apparent is that of worrying about the next generation, and the generation after that. Only 20 percent of investors were worried about having enough money to leave to their posterity in 2014, while 26 percent of investors currently worry about that. Financing the education of their children and grandchildren is also starting to see an increase in the number of investors who are concerned about those topics. Sixteen percent of investors were worried about financing the education of their grandchildren in 2014, while 25 percent are concerned about that currently. Financing the education of their own children saw a similar shift, with only 12 percent of investors being concerned about financing the education of their children in 2014, compared to 21 percent of investors who are concerned about the financing of their children’s education currently.

Grandparents are also worried about their children and grandchildren’s financial situation. Thirty-seven percent of wealthy investors were concerned about the financial situation of their children and grandchildren in 2014, yet now 44 percent of investors are concerned about the same topic.
While being a grandparent is lots of fun, it is clear that it also comes with plenty of worry and concerns. Investors should discuss these concerns with their financial professional so they can address these issues.