Raising kids has gotten so expensive, parents are turning to an unexpected lifeline

The cost of raising children in the United States has skyrocketed, causing many parents to turn to an unexpected source for financial support: their own Boomer grandparents. According to a recent survey by Ipsos for the 2026 BMO Real Financial Progress Index, 82% of U.S. parents believe that the expense of raising kids has become "out of control." Additionally, 79% of non-parents are concerned about the high cost of having a family.

Robin Growley, U.S. Head of Consumer Products at BMO, described raising children as a "major feat of financial engineering" that often forces families to make tough decisions between spending on urgent needs and important ones. To ease the financial burden, many parents are now relying on their elderly parents for assistance. In 2026, 76% of parents with children under 18 plan to receive financial support from extended family to afford opportunities for their kids.

Of those who expect help, 37% anticipate receiving financial aid from their parents or grandparents within the next year, with 47% planning to ask for cash to cover daily living expenses. Another 43% hope for free childcare, provided by grandparents, or help with childcare costs. Additionally, 26% of families are contributing funds to save for their children's future.

While financial help from family can provide much-needed relief, there is also an emotional toll. Those who live close to their aging parents and receive assistance are more likely to feel financially overwhelmed (74% compared to 57% of others). This is particularly true for members of the sandwich generation, who are already stretched thin by caring for both their children and aging parents.

Growley emphasized that while receiving help from grandparents can be a significant gift, it often comes with the challenge of managing family caregiving responsibilities alongside financial stress.