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Grandparent News
Grandparents in U.S. Spend $27.5 Billion Annually on
Their Grandchildren
72.2% of grandparents wish they could spend more as
Grandparents Day approaches
 Sept. 4, 2007 Are grandparents obsessed with
spending on their grandchildren? A new report says U.S. grandparents
already are spending $27.5 billion a year on their grandkids, but almost
three-fourths wish they could spend more and some will even borrow money
to spend more on these children.
There are 56 million grandparents in the United
States spending this $27.5 billion on grandchildren per year. The
economic impact could increase significantly if the same grandparents
were able to spend what they desired, according to a study conducted by
two Sacramento State University professors on behalf of Liberty Reverse
Mortgage.
In honor of Grandparent's Day on Sunday, September
9, Liberty Reverse Mortgage and Sacramento State University have
compiled the second annual Grandparent's Cost Index.
The purpose of the survey was to examine the amount
of money that Grandparents spend on their grandchildren, what it is they
spend their money on, and whether they feel like they are spending all
they want or can on their grandchildren.
The not so subtle message in the report is that one
way to get more money to spend on grandchildren is to get a reverse
mortgage.
"Grandparents who have mortgages spend a lot less
than those who do not," explains survey author Professor Dennis H.
Tootelian, Ph.D.
"The economic impact of grandparent's spending is
huge, and it continues to grow as the spending power of these
grandparents increases."
Grandparents will often borrow to spend more money
on their grandchildren, the report says.
 "Liberty Reverse Mortgage works with clients 62 and
older, and we've gotten pretty smart about what their needs and desires
are," says Pete Engelken, President of Liberty Reverse Mortgage.
"Grandparents do not have any extravagant needs,
they just want to be able to provide for themselves and spend money on
their children and grandchildren. They simply don't have the cash flow
to accomplish this."
According to a study released by the National
Reverse Mortgage Lenders Association, age 62 and older U.S. households,
which comprise the majority of grandparents, have $4.3 trillion tied up
in their home equity.
If they were able to tap into even a small
percentage of this equity, it would have a big impact on the nation's
economy, suggests the news release from Liberty Reverse Mortgage.
Additional spending could reach up to $56.2
billion, the news release says.
Editors Notes:
About Liberty Reverse Mortgage:
Liberty Reverse Mortgage reports that it changes
the lives of seniors by enabling them to convert the equity in their
home into cash. It is the largest independent Reverse Mortgage company
in the U.S. It provides only reverse mortgages, allowing it to
concentrate solely on this financial product and permitting it to impart
expertise on the benefits and regulations surrounding this
government-insured program. Liberty recently entered into an agreement
to be purchased by Genworth Financial(R). The transaction is expected to
close in the next 90 days.
The Grandparents Cost Index is an official
trademark of Liberty Reverse Mortgage.
http://www.grandparentscostindex.com/.
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