37% of Parents Seek Financial Help from Grandparents Amid Rising Child‑Care Costs

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In a year when child‑care expenses are climbing, 37% of parents with children under 12 say they will rely on financial help from grandparents. The BMO Real Financial Progress Index reveals that 82% of American parents consider the cost of raising children “out of control,” while 86% blame everyday expenses—daycare, after‑school programs, summer camps, school supplies—for eroding savings. More than three‑quarters view extended‑family support as essential.

Financial Help from Grandparents Becomes Lifeline for 37% of Parents

“Raising kids has always been a labor of love, but right now, it is also a major feat of financial engineering,” said Robin Growley, BMO U.S. Head of Consumer Products.

Beyond cash, 43% of those parents depend on grandparents for childcare, and 26% expect contributions to 529 plans or similar accounts. The shift precedes the anticipated Great Wealth Transfer, as families tap older relatives now. Care.com’s 2026 Cost of Care report shows parents spend roughly ↓ 20% of annual income on childcare, with one‑in‑five paying >$30,000. The U.S. HHS benchmarks affordable care at 7% of income. Mental‑health strain is rising; 80% of parents report constant preoccupation with others, and a ↑ 5% rise in thoughts of self‑harm was recorded. Brad Wilson, CEO of Care.com, warned that sustained pressure could force parents out of the workforce, deepening fiscal stress. Housing affordability compounds the issue: BMO finds 60% of Gen Z homeowners and 57% of Millennials needed family assistance to buy a home, and six‑in‑ten Gen Z adults anticipate help from parents or grandparents. Wealth data from Reuters estimate $124 trillion will shift hands by 2048, with nearly $100 trillion from baby‑boomers, yet distribution remains skewed—Federal Reserve data show the top 1% hold about 30% of assets. Proximity matters: 45% of parents live close enough to receive aid, saving an average $1,915 on childcare and $1,443 on groceries, but 70% of those also shoulder the financial or emotional burden of aging relatives, creating a classic “sandwich generation.” As Growley notes, “Choosing to live near family is often a heart decision, yet it carries real fiscal consequences.”

Analysis by: Victor Hale

Equities & Market Dynamics Analyst