More than 3 in 4 parents say relying on Boomer grandparents is essential to afford raising kids
Raising children is becoming more and more costly, and modern parents are feeling the strain. Now, according to one new report, grown adults with children are relying on their own parents in high numbers.
The data comes from a survey of 2,500 U.S. adults by the global market research company Ipsos for the 2026 BMO Real Financial Progress Index. The research found that the large majority of parents in the U.S. believe that the cost of raising children is “out of control,” with 82% agreeing with the sentiment. Meanwhile, even nonparents are concerned about the cost of raising children, as 79% wonder how their peers can afford to have families.
“Raising kids has always been a labor of love, but right now, it is also a major feat of financial engineering with families torn between spending on the urgent and the important,” Robin Growley, U.S. Head of Consumer Products, BMO, said in a news release.
Growley continued, “Whether you are budgeting for diapers or dorm rooms, the absolute best antidote to daily financial stress is a clear, actionable plan.”
For many modern parents, part of the plan seems to be relying on their own boomer parents to afford raising their kids. In 2026, 76% of parents with children under 18 say that receiving financial support from extended family is necessary to afford opportunities for their children. Likewise, 37% of parents expect financial help from their parents or grandparents over the next year and plan to ask for it.
Mostly, that group is getting help with daily living expenses. 47% of those who will ask for help say they will receive cash for their everyday needs. 43% say the help will come in the form of free childcare, provided by grandparents, or help with the costs of childcare. 26% say their family is helping financially by putting away funds for the future for their children.
The need for financial assistance isn’t due to the fact that modern parents are lazy or wildly over-spending. Mainly, it has to do with how quickly the cost of raising children has gone up drastically in recent years. According to a 2026 Lending Tree analysis, since 2023, the annual cost of raising a young child has skyrocketed by nearly 36%, coming to about $30,000 per year, or $300,000 over 18 years.
Interestingly, while financial help from family may go a long way, there’s an emotional tax that comes with it. Those who live close to aging parents and receive help with the costs of raising children are more likely financially overwhelmed than those who don’t (74% as opposed to 57%).
Growley noted that the numbers likely reflect the sandwich generation’s attunement with the fact that their parents raising children also realize their aging parents will soon be relying on them, too. “Having a grandparent help raise your kids can be one of life’s greatest gifts, but family caregiving is often a reciprocal arrangement—and it can be a lot when you’re already stretched thin,” Growley said.
