Today’s grandparents are an economic force that should not be ignored. They collectively spend about $179-billion per year on grandkids. That translates to an average annual spend of $2,562 per grandparent.
If that doesn’t get your attention, how about this: grandparents as a consumer segment are projected to account for at least 40% of consumption growth between now and 2030. This really isn’t surprising, as grandparents control about a third of America’s assets.
Gift-giving is a Grandparent’s Role
A 2012 MetLife Study determined that 96% of grandparents reported they spend money on their grandchildren for birthday and holiday gifts, and 62% provided other financial or monetary assistance.
So where is that money being spent? According to AARP:
Furthermore, grandparents are eager to pass on more than money. That same MetLife Study showed that grandparents want to impart a value system to their grandchildren that includes ideals such as: honesty (86%), good behavior (82%) and self-sufficiency (70%).
There’s an Opportunity for Marketers Here!
Since grandparents are predisposed to spend on their grandkids – and they are also interested in passing on their values to those grandkids – opportunities exist for marketers who can provide products or services that help grandparents share those values. Such opportunities can include:
The list can go on. The point is, grandparents generally have limited opportunity to influence their grandkids’ behavior and values. However, this is important to them. They want to leave a legacy for their grandchildren, and this desire ferments beneath their consciousness. It comes from the heart and recognizes that a grandparent’s remaining time is limited, creating an urgency that will often create incentive to invest financially to establish that legacy.
Provide an avenue for creating a legacy for grandparents and it can prove to be profitable for your business.