The Bank of Grandma and Grandpa

For many Australian families, grandparents are doing far more than spoiling the grandkids.

Research from Compare the Market found almost three-quarters of grandparents surveyed were financially supporting family members.

This support included free “childcare” and cash gifts, through to helping with household bills and property purchases.

On a timely episode of Grandparenthood podcast, National Grandparent Movement’s Ian Barnett said the “Bank of Grandma and Grandpa” is becoming increasingly common as families navigate housing and cost-of-living pressures.

“It is a thing, and it’s becoming more of a thing,” Ian said.

Why grandparents are stepping in

With housing affordability remaining a challenge across Australia and home ownership becoming harder for younger generations, many grandparents feel compelled to help. 

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“The challenge for grandparents today is simple: do I help or not help?” Ian said.

“Unless you as a grandparent help your kids now, they will struggle.”

He believes many families are struggling with expenses, ranging from childcare and school costs to housing.

“Unless you as a grandparent help your kids now, they will struggle,” Ian said.

Drawing on Galatians 6, Ian pointed to a biblical encouragement towards generosity.

“Let us not become weary in doing good,” he said.

At the same time, Ian acknowledged today’s financial reality can look very different to previous generations.

“When my kids are talking about needing to borrow $800,000 to buy a home, I’ve got no paradigm in my head,” Ian said.

Generosity needs wisdom

While Ian supports helping family where possible, he repeatedly stressed the importance of healthy boundaries and communication.

“Be generous, but also be wise,” he said.

“It’s okay sometimes to say no,” Ian said.

“If you’re going to help, just be clear about why you’re helping, what that means, have clear guidelines.”

Ian warned grandparents not to create expectations that they will always rescue children or grandchildren financially.

“You don’t want the situation where your child will just think, ‘Mum and Dad will always bail us out’,” he said.

“Be generous, but also be wise. It’s okay sometimes to say no.”

He also encouraged families to be open when support differs between siblings because of differing circumstances.

“All I’m saying is you actually just need to be clear with your communication,” Ian said.

“Be generous doesn’t mean you don’t ask questions.

“Questions just mean you want to help them in a positive way.”

Helping without strings attached

Ian and his wife currently have family staying with them while waiting to move into a new home.

“It’s a joyful sacrifice,” he said.

“If I can be generous for two months and help them get ahead, that’s really important.”

For Ian, generosity reflects God’s love and care.

“It’s a sign of love, generosity, kindness,” he said.

Listen to the full episode in the player above.

Feature image: Canva Pro