How Grandparents Can Pass Down Good Financial Wisdom

It can be tempting for grandparents to spoil their grandchildren; after all, isn’t that part of the job description? But experts warn the money and financial habits passed down from generation to generation are long lasting.

The value of a dollar and an education are the top lessons boomers can share with their grandchildren, but their numbers might be a little old-school ideas when it comes to just how expensive college is today.

According to a new TIAA-CREF study, conducted by an independent research firm, 20% of grandparents think a four-year college education costs $30,000 to $50,000 and 25% think it costs $50,000 to $75,000. In reality, a four-year public college costs about $100,000 and a private four-year school now averages $164,000, the study shows.

Joseph Stabnick, senior director, AARP College Savings Solutions from TIAA-CREF, offers the following tips for grandparents to positively impact their grandchildren’s money habits to ensure their financial security:

Boomer: How can boomers pass along good financial skills and money-saving habits? 
Stabnick: Boomers can make a positive impact on their grandchildren by sharing how their financial decisions – for better or worse – have affected their lives.

Only 8% of grandparents have conversations with their grandchildren about money and the importance of saving for college, compared to 85% of young adults who are open to having this conversation.

Only three in 10 grandparents think they can influence their grandchildren’s money habits. Yet, 73% of young adults indicate their grandparents actually do influence their saving and spending habits.

Only 59% rate their grandparents as very good to excellent savers.

Source:  FoxNews