Congratulations on becoming a grandparent! If you're intent on making contributions to your grandchildren from birth, this is the article for you.
Something magical happens when people become grandparents. Suddenly, it’s a second shot at gently steering kids down the right path. This time, without all the pressure and uncertainties from the first round. And with that, grandparents play a critical role in a child’s development and future. A Cong & Silverstein study in rural China—where parent-grandparent co-parenting is common — found considerable benefits to grandparents lending a hand, including valuable support for parents, enabling them more financial attainability, fewer depressive symptoms and overall improved satisfaction with life.
Beyond the cuddles and treats that come with being a doting grandparent, keep reading for more on how to make contributions to your grandchildren from birth—both emotionally and financially.
Emotional Contributions to Your Grandchildren
Show unconditional love. Grandparents are known for showering their grandchildren with affection and support. (There’s a reason the “I’m calling Grandma” sign business is thriving.) This love builds a safe and secure foundation for kids as they grow and develop, establishing grandparents as safe and trustworthy people in their lives.
Come in strong with quality time. Quality time is a way to build bonds and create core memories. If you live close by, you can host family dinners, have sleepovers, offer to babysit on a regular schedule and show up for extracurricular activities and events. If you live too far to be a consistent in-person presence, make yourself available for phone calls or texts. Technology has evolved so much that you can even use FaceTime at bedtime to read a story], sing a lullaby or hear daily reports.
Share life lessons and give emotional back-up. Older and wiser,grandparents are brimming with knowledge and experience. This expertise can act as an important shepherding staff for impressionable grandchildren. However, it’s important to strike a balance when listening and advising. Just like your own kids, some lessons are best learned independently. What’s always encouraged is to let grandchildren know that you’re there to talk and offer emotional support through the good and the bad.
Pass down tradition and culture. Oftentimes, grandparents are the gatekeepers to cherished family recipes — you know, the secret chocolate chip cookie recipe on the back of the Tollhouse bag? — customs and traditions. Sharing these rituals and cultures is an important interaction to extend the family legacy and build strong relationships with grandchildren. Whether it’s cabbage roll-making, pierogi-pinching, finding the perfect Christmas tree, celebrating festivals, building ofrendas or sharing the tall tales that make up your family’s lore, pass it down the line to help bridge the gap and extend the legacy.
Financial Contributions to Your Grandchildren
Emotional contributions are, of course, so important. But if you can set your grandchildren up for financial success, try these tips. Reminder: Taking care of your family is great, but don’t overextend yourself financially. Make sure you’ve put your own financial needs first.
RESP contributions: Grandparents can contribute to an RESP (Registered Education Saving Plan), a non-tax-deductible account. Investments in an RESP can grow without being taxed upon withdrawal and will be used for educational expenses like tuition, books and supplies.
Early investments: Bonds, stocks and mutual funds are places to park investments for your grandchildren. Family trusts and gifting caps also can go towards your grandchildren. Talk to your financial advisor to learn more.
Gifts: Cash gifts can be made for special occasions like birthdays, graduations and holidays.
Inheritance and life insurance: It’s not fun to think about, but passing assets along through your will is another way to set your grandchildren up. Of course, this financial contribution is dependent on your passing, which hopefully will be when your grandchildren are adults, but it can still be a way to help them buy a house or build savings for their own children’s financial future. A whole life insurance policy can be set up to provide grandchildren with a lump sum.
