The Grandparent Economy April 2009

8/3/2019 The Grandparent Economy April 2009

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2 The Grandparent Economy

ExecutiveSummaryCollectively, Americas grandparents are one of the most powerful and underestimateddrivers of the U.S. economy. This study provides a comprehensive description of the size,spending behavior and economic strength of this robust and growing market segment.

There are approximately 70 million grandparents in the United States, and their number isincreasing at more than double the rate of the overall population. With their average real-income rising faster than any other consumer segment, grandparents are not shy aboutspending. In aggregate, they buy $2 trillion worth of goods and services annually.i

In setting out to measure the grandparent economy and its impact on consumer markets,we focused on 3 key objectives:

1. Quantifying the number of individual grandparents in the U.S. as well as thenumber of grandparent households, and then determining their age distribution

2. Calculating how much money grandparents spend each year on goods andservices, with a special focus on how much they spend on their grandchildren

3. Projecting the grandparent population in 2010 and 2015, and then forecasting totalspending, spending on grandchildren and their overall economic impact

This study is the first in a series of reports that will provide a close-up view of thisexpanding segment of consumers as well as an in-depth look at their impact on the U.S.economy.

To our knowledge, and surprise, no prior study has fully explored the grandparentconsumer segment. This seems an amazing oversight on the part of market researchers,given that grandparents control the majority of financial assets in the United Statestoday.

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KeyFindingsGenerally speaking, todays grandparents are younger and more financially secure thanthose in generations past. Many own their homes outright (or have very smallmortgages), and work well beyond the once-typical retirement ages of 62 to 65. A good

number have college degrees and earn income by working in office, professional andmanagerial jobs. Their net worth is high relative to other consumer segments, and theirincome potential is strong because of deferred retirement. Finally, grandparent-consumers spend substantial amounts on goods and services for themselves, as well as fortheir grandchildren.

Thegrandparentpopulationislargeandgrowingiii

Three in every ten adults are grandparents an all-time high.

By the end of 2009, there will be more than 70 million grandparents in the United

States. By comparison, people ages 13 to 19 years, a frequently targeted consumersegment, number fewer than 30 million.

Grandparents lead 37% of U.S. households, or 44 million households nationwide.

The grandparent population is larger than either the African American or Hispanicpopulation segments (which together total 80 million).

Grandparentsareyoungerthaneverbefore

Parents first become grandparents at the median age of 50 for women and 54 for

men.iv

54% of grandparents, almost 38 million, are younger than 65 years old.

By 2010, more than half of the grandparent population (51%) will be BabyBoomers (those born between 1946 and 1964) nearly 60% by 2015.v

Incomeandassetsofgrandparenthouseholdsaresubstantial

Households led by 55- to 64-year-olds, 66% of which are grandparent-led, havethe highest average net worth of any age group at $254,000.vi

During the past 10 years, the median family income for those 55 to 64 has risenby 12%, after adjusting for inflation. The only age group coming close to that is65- to 74-year-olds, whose income rose an inflation-adjusted 11%.vii

By 2010, households headed by 55- to 64-year-olds will earn the highest averageincome, surpassing that of families headed by 45- to 54-year-olds for the firsttime. Households led by 45- to 54-year-olds (30% of which are grandparent


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households) will still wield tremendous buying power.

A majority of grandparent-homeowners (55%) do not carry a mortgage, a costthat typically accounts for a hefty proportion of younger homeownersexpenses.viii

With smaller mortgage obligations, a relatively healthy employment outlook (see page 13) and higher assets, grandparent households overall have fared betterduring the current economic downturn than younger families. As such, they are ina relatively better position to spend than younger cohorts. When the economichistory of this recession is written, it will likely show increased spending bygrandparents on grandchildren to compensate for reduced incomes of their adultchildren.

Grandparentsspendalotmoreandmoreeveryyearix

We estimate that in 2009, grandparents will spend $2 trillion. Of this,approximately $52 billion will go toward goods and services for theirgrandchildren.

Grandparent spending on grandchildren has grown an average 7.6% per year since2000. Thats nearly double the average annual growth rate for consumers overall.

Grandparents are generous: They make 45% of the nations cash contributions tononprofit organizations and account for 42% of all consumer spending on gifts.

APortraitoftheAmericanGrandparent

The very nature of what it means to be a grandparent has changed in ways that are justnow becoming apparent. The grandparent population today is larger, faster growing, better educated, more affluent and more economically active than any previousgeneration of grandparents.

The number of grandparents in the U.S. has been steadily increasing since the mid-1990s,when the children of Baby Boomers started having kids of their own (Figure 1).

Source: U.S. Census Bureau estimates & projections and 2004 Survey of Income & Program Participation.

In 1990, the oldest Baby Boomer was just 44 years old and Boomer grandparents werefew in number. However, by 2015 more than half of U.S. grandparents (59%) will be


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members of the Boomer generation, or those born between 1946 and 1964 (Figure 2).

Source: Computed using U.S. Census Bureaus annual population estimates for persons born from 1946 to1964.

Couple the relative youth of todays grandparents with the intent of most Baby Boomersto continue working beyond age 65, and one begins to appreciate the vast earningpotential of this consumer group.

Further, men 55 to 64 make up the highest percentage (41%) of men with college degrees and 36% of women in that same-age cohort hold college degrees. The average incomeof college-degree holders is higher than that of less-educated groups.

Grandparentsareyoungandgrowinginnumber

Grandparents today are younger than ever before. In 1985, most grandparents were age65 and older. In contrast, by 2010, those ages 45 to 64 are expected to make up themajority of the grandparent population.x

Of the more than 18 million consumers ages 55 to 59, over half are grandparents. Of 65-to 74-year-old consumers (the most rapidly growing age cohort over the next decade),75% are grandparents (Figure 3).

Source: U.S. Census Bureau SIPP data (2004) combined with Census Bureau annual population estimatesby age and gender for 2004.

Grandparenthouseholdsaregrowingfasterthananyotherhouseholdsegment


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Remarkably, grandparents lead 1 in every 3 households today. Their number is increasingat twice the average annual rate of U.S. households overall. By 2015, more than 50million U.S. households (approximately 38%) are likely to be headed by a grandparent.

Source: Computed using U.S. Census Bureaus Current Population Survey of households by age ofhouseholder.

Today, approximately two of every three households headed by 55- to 64-year-olds aregrandparent households (Figure 5).

Source: Computed using U.S. Census Bureaus 2007 Current Population Survey of households.

Manygrandchildrenandgrandparentsliveinthesamehousehold

According to the Census Bureaus American Community Survey, there were 6.2 milliongrandparents living with one or more of their grandchildren in 2007. Contrary tostereotypes of a grandparent moving in with their adult children, only a small percentageof grandparents are living with grandchildren in a home other than their own.xi Notably,there is a grandchild living in about 1 in every 10 grandparent-headed households.

HowMuchGrandparentsSpendandWhatTheyPurchase

HighrelativeincomeandassetssupportheftyspendingbygrandparentsSubstantial consumer spending among grandparents is being driven by a combination ofrising income, a relatively healthy employment outlook compared to younger cohorts andthe relative net worth of grandparent households. Income is increasing most rapidlyamong grandparent-age households (Figure 6). Those same households also have thehighest net worth.


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Source: Computed using U.S. Census Bureaus Current Population Survey for 1997 and 2007.

According to the U.S. Census Bureau, from 1997 to 2007 the median real income offamilies overall rose 7%, adjusted for inflation. Only those ages 55 to 64 and 65 to 74saw their median family income increase more, up 12% and 11% respectively (Figure 6).

Median income peaks at ages 45 to 54 (when the majority of men and women firstbecome grandparents); families headed by 55- to 64-year-olds have the second highest

median income. But, given current population trends and income growth rates, by 2010we expect the highest median income will be that of families led by 55- to 64-year-olds.Families led by 55- to 64-year-olds already have the highest net worth of any age group(Figure 7).

Even with the recent economic events that decreased net worth, those 45 to 54 and 55 to64 are still better off than younger families, many of whom are burdened with expensivemortgages and high credit card or other debt.

Source: U.S. Census Bureau 2007 Current Population Survey and 2007 Federal Reserve Bank Survey ofConsumer Finances.

Households headed by those under age 35, where most young children reside, havesubstantially more debt in relation to their income than grandparent households, likelydue to college loans, home ownership or credit-card purchases of goods and services tosupport their families.

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Today more than ever before, young families may need help with the expenses that comewith raising children. Fortunately, many grandparents have the resources (and seemingly


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the desire) to help with those expenses.

Directandindirectspendingbygrandparenthouseholdsissignificant

Grandparent households spend an estimated $2 trillion on all goods and services annually thats one third of consumer spending overall.

Since 2000, spending by grandparent households rose at a compound annual growth rateof 8.3%, well above the rate of overall consumer spending. This growth is likely due tothe rapid increase in the number of grandparent households and their higher relativeincome growth, as noted previously.

The estimates presented in Figures 8 through 16 below were calculated using 2007Bureau of Labor Statistics per household spending by age group multiplied by theauthors projection of 2009 grandparent households shown in Table 2.

All together, we estimate that grandparents will spend approximately $52 billion on

direct (purchases made for a grandchild, but not considered a gift by the purchaser) andindirect (purchases made specifically as gifts) goods and services for their grandchildrenin 2009 (Figures 8 and 9).

Source: Estimated spending by 2009 grandparent households on selected items calculated from the U.S.Bureau of Labor Statistics annual Consumer Expenditure Surveys (2007). See Table 2 for description ofwhat is included in each major spending category.

But this is only a fraction of grandparents total spending. While they will purchase an


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estimated $23 billion worth of gifts for their grandchildren, their total spending on allgifts will top $64 billion.xiii Thus, part of the $41 billion difference may go toward itemsthat in some way benefit their grandchildren, such as furniture or cars for their adultchildren.

EstimatedGrandparentSpendingbyCategoryfor2009FoodGrandparent households spend money on many of the same things that other U.S.households do. We estimate, for example, that grandparents spend $140 billion a year onfood at home (Figure 10).

Source: Spending by grandparent households on selected items calculated using the Bureau of LaborStatistics Consumer Expenditure Surveys 2007 data with 2009 projected number of grandparenthouseholds.

Grandparents also like to go out to eat, spending more than $97 billion annually atrestaurants (Figure 11). During any given weekend, it is not uncommon to seegrandparents sharing a meal out with one or more of their grandchildren.

Source: Spending by grandparent households on selected items calculated using the Bureau of LaborStatistics Consumer Expenditure Surveys 2007 data with 2009 projected number of grandparenthouseholds.Apparel


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Grandparents buy a lot of apparel for themselves as well as for their grandchildren(Figure 12A). We estimate total grandparent spending on apparel at $76 billion.Moreover, for anyone who is a parent or grandparent, it comes as no surprise thatgrandparents spend over $3 billion annually on infant apparel alone (Figure 12B).


TravelIf travel spending is any indication, todays grandparents are no couch potatoes. Theyspend over $77 billion a year on travel-related expenses (Figure 13). These include:airline and train tickets, lodging, meals while traveling and spending on vacation or theirsecond homes.


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Grandparents travel frequently, potentially with their grandchildren or to visit them,spending an estimated $251 billion annually on motor vehicles, fuel and maintenance(Figure 14). We estimate that about a third of their automotive spending, or $56 billion,goes to purchase new or used vehicles. But given the deep decline in all auto sales overthe past two years this estimate reduces the spending from the 2007 figure by 50 percent.


EntertainmentGrandparents spend over $100 billion a year on entertainment (Figure 15). This covers awide range of goods and services, including: cameras, camping gear, bicycles and boats,

as well as admission fees to sporting events or concerts.


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Source: Spending by grandparent households on selected items calculated using the Bureau of LaborStatistics Consumer Expenditure Surveys 2007 data with 2009 projected number of grandparent households

EducationThere is evidence that grandparents are actively stewarding their grandchildrenseducation (Figure 16). They spend $32 billion on tuition and other expenses annually.

Anecdotal evidence supports this: A young woman wrote recently in a letter to the editorof the Boston Globe, As a college student, I know all about the difficulty of finding ajob, yet I am able to go to school because my grandfather works to support me.

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Beyond spending on education, grandparents are giving their grandchildren over $5.5billion each year in gifts of stocks, bonds and mutual funds (Table 2).


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AMassiveOpportunityforU.S.Business

Grandparents may be the future apple of the eye of U.S. businesses. Spending trillions ofdollars annually, Americas grandparents are a consumer force to be reckoned with orat least finally recognized.

Grandparents are rapidly growing in number. They are living and working longer,thereby strengthening their earning potential. Their income and net worth are substantial.This is especially true of grandparents aged 45 to 64, who have maintained income byworking and also amassed significantly more savings than consumers under 45. Theirpotential impact on the U.S. economy is huge.

Despite media reports of slowed spending in 2008, the U.S. Bureau of EconomicAnalysis Personal Consumptions Expenditures data shows that, while spending ondurable goods declined 5.5%, spending on non-durable goods and services rose 4.7%from 2007 to 2008.

And, several economists have suggested the current recession may end sometime in 2009as current spending is flat compared to 2008 levels. Since this report uses 2007 consumerspending data in its calculations, future spending projections may be conservative. Wemay be underestimating grandparent spending in a number of non-durable or servicesector categories (e.g., education, infant apparel and food), where spending has increaseddespite the recession.

Moreover, recent employment data from the Bureau of Labor Statistics shows thatnationwide job losses have fallen almost entirely on younger workers. The datacomparing 2007 and 2008 employment levels shows a decline of 2% among workersages 35 to 44 but an increase of 4% among those ages 55 to 64. The increase is even

greater for people 65 and older. In terms of unemployment, this recession has likelyburdened parents far more than grandparents.

Stock market declines have diminished the invested assets of older Americans, includinggrandparents. However, the majority of grandparents under age 65 remain in theworkforce. Thus, they are not as dependent as retirees on drawing income from investedassets. Even grandparents 65 and older receive only a small fraction of their income from401(k) or similar assets, according to a 2008 Census Bureau survey. Rather, they derivethe majority of their income from pensions, Social Security or interest from savingsaccounts and bonds. It is worth repeating, too, that most homeowners aged 65 or older donot carry mortgages on their homes.

Finally, consider this: The Centers for Disease Control recently reported a record numberof births in 2007: 4.3 million. Of those births, 40% were first children. Will this set off anexplosion of spending by both parents and grandparents? The newest baby boom may bethe fuel that propels grandparent spending to levels we have never seen before, nor everimagined until now.


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MethodologyEstimatingandprojectingthenumberofAmericangrandparentsThis study of the grandparent economy calculates the total number of U.S. grandmothers

and grandfathers as well as the number of grandparent households using a special 2004U.S. Census Bureau survey as its base.

Although the U.S. Census Bureau takes a nearly complete count of U.S. residents every10 years and conducts extremely large surveys every year, it had never tabulated orestimated the total number of grandparents in the nation until its 2001 Survey of Incomeand Program Participation (SIPP), which used a national probability sample of 37,000households. The 2004 edition of SIPP provided the base numbers of grandparents fromwhich we launched this study.

We compared the 2004 SIPP data against the official 2004 Census Bureau estimates of

the total population of men and women by age. From this, we were able to calculate thepercentage of people in each age cohort who are grandparents.

We used those percentages to estimate the number of grandparents for years other thanthe survey year of 2004. This was accomplished by calculating the percentage of eachfive-year age cohort on the 2004 SIPP that were grandmothers and grandfathers and thenapplying these percentages to the Census Bureau five-year estimates by gender for both past and future years. In the absence of any Census Bureau survey data countinggrandparents after 2004, we had no alternative but to hold the age-specific percentagesconstant for each year reported in this study.

These estimates may somewhat underestimate the total number of grandparents, in part because the 2004 survey mentioned above only contacted people who were living in ahousehold. Thus, any grandparent living in a life-care community, an assisted-livingfacility or a nursing home would have been excluded from the survey and subsequentestimates derived from the survey data.

We believe that the underestimate is small, except for those ages 75 or older. For that agegroup, we adjusted the percent of total population slightly (by approximately 4%) toaccount for that exclusion. Nevertheless, all estimates of U.S. grandparents in this reportshould be considered as only those grandparents who are living in households.

At the time of the 2001 survey, the Census Bureau made preparations to ask the samegrandparent question in the 2004 and subsequent surveys because: The aging of theBaby Boom group will continue to increase the relative size of the population at olderages, and subsequently the number of grandparents. That hypothesis seems to have heldtrue. In 2001, Baby Boomers were only about 25% of grandparents. But by 2010, BabyBoomers are projected to make up just over half of all grandparents.

That 2004 Census Bureau survey found an estimated 60.5 million grandparents 8%


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more than just three years prior. In 2004, most grandparent-respondents were youngerthan 65 years old. Grandmothers outnumbered grandfathers by about 4 to 3.

We estimated the number of grandparent households by using the age-specific number ofpeople per household reported in the Census Bureaus annual Current Population Survey.

Since that survey is taken every year in March we were able to build into our householdestimates the slight variations in household size by age for each year of our estimates.

EstimatingandprojectingspendingbygrandparenthouseholdsWe combined the number of grandparent households from above with data from theBureau of Labor Statistics household-based consumer expenditures surveys to determinehow much grandparent households spend each year in total, and also specifically on theirgrandchildren. These survey numbers were used to project estimated total economicimpact of grandparent households, as well as their future spend specifically on behalf oftheir grandchildren.

From those Bureau of Labor Statistics surveys, we were able to extract averagehousehold spending on a wide array of goods and services for households headed by people ages 45 and older by 10-year age cohorts. Since we had already estimated thenumber of grandparent households in each age category based on the methodologyabove, we could multiply the average spending to obtain total grandparent spending onany item.

So, for example, we can calculate that households in the age category 55 to 64 years oldspent an average of $55.40 per year on infants (children younger than age 2) apparel.Plus they spent an average of another $49.00 on gifts of apparel for those infant

grandchildren.

Multiplied by the number of grandparent households we have estimated are in that agegroup (12.9 million), those figures mean grandparents in that age group spent $3 billionon clothing for infants, who were almost certainly their grandchildren.

Table 1 below shows our estimates and projections for the number of grandparents ineach age group from age 45 and older from 1980 to 2015. Table 2 shows our estimate ofcurrent annual spending by grandparent households on goods and services purchased forthe benefit of their grandchildren. It is derived by multiplying the rate of spending ofgrandparent households in 2007 by the estimated number of grandparent households in2009.


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Table 1: Estimates and Projections for the Number of U.S. Grandparents andGrandparentHouseholds

Age

Cohortby Year

#Grandfathers

(millions)

#Grandmothers

(millions)

#Grandparents

(millions)

#Grandparent

Households(millions)

1980

45-54 2.87 3.88 6.76 4.13

55-64 5.87 7.49 13.36 8.36

65-74 5.19 7.12 12.31 8.16

75+ 2.78 5.17 7.95 5.85

1985

45-54 3.00 4.01 7.01 4.28

55-64 5.86 7.39 13.25 8.29

65-74 5.65 7.66 13.31 8.83

75+ 3.21 6.01 9.22 6.781990

45-54 3.13 4.13 7.25 4.37

55-64 5.84 7.29 13.13 8.20

65-74 6.11 8.20 14.31 9.49

75+ 3.63 6.85 10.48 7.65

1995

45-54 3.93 5.15 9.08 5.47

55-64 6.27 7.73 13.99 8.71

65-74 6.25 8.17 14.42 9.52

75+ 4.21 7.65 11.86 8.86

2000

45-54 4.73 6.18 10.91 6.56

55-64 6.69 8.16 14.86 9.15

65-74 6.39 8.14 14.53 9.46

75+ 4.79 8.45 13.24 9.47

2005

45-54 5.35 6.97 12.32 7.31

55-64 8.35 10.13 18.48 11.70

65-74 6.56 8.16 14.72 9.53

75+ 5.38 9.05 14.43 10.23

2010

45-54 5.70 7.41 13.11 7.86

55-64 10.10 12.19 22.29 14.29

65-74 7.64 9.30 16.94 11.04

75+ 5.77 9.19 14.96 10.64

2015

45-54 5.60 7.23 12.83 7.69

55-64 11.31 13.62 24.93 15.98

65-74 9.65 11.63 21.28 13.86

75+ 6.26 9.57 15.83 11.26


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Table2:GrandparentHHEstimatedAnnualSpendingonGrandchildren($MM) irect Spending by Grandpa rent Households1Baby & child food, care, furniture & equipment 2,144.91$

Baby food 597.80$

Food/board at school 23.00$

School lunches 252.70$ 2

Babysitting and child care 933.20$

Infant furniture and equipment 338.21$

Children's apparel & footwear 6,175.90$

Boys apparel, ages 2-15 1,287.30$ 3

Girls apparel, ages 2-15 2,044.90$ 4

Apparel for children under age 2 1,671.00$

Footwear for boys & girls 1,172.70$

Toys, games, bicycles, etc. 4,293.50$

Toys, games, arts and crafts, and tricycles 3,662.60$

Playground equipment 113.60$

Bicycles 517.30$

Education 10,920.40$

College tuition 3,299.40$

Elementary and high school tuition 2,444.30$

Vocational & technical school tuition 149.30$

Other schools tuition 773.30$

Other school expenses 1,181.80$

School books, supplies, equipment: for college 179.40$

:for elementary and high school 123.60$:for day care, nursery, preschool, other 132.80$

:for other schools and unspecified 1,709.10$

Cash support for college students 927.40$

Gifts of Stocks, Bonds and/or Mutual funds 5,555.80$

Total Direct Spending 23,534.71$


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Table 2: Grandparent HH Estimated Annual Spending on Grandchildren ($ MM)(cont)

Indirect S pending (gifts of goods & services)Food or board at school 633.50$

Food on out-of-town trips 110.70$

Housing on out-of-town trips 295.00$

Tuition for day care centers, nursery & preschools 447.20$

Infants furniture and equipment 184.40$

Computers and software 317.80$

Boys apparel, ages 2 to 15 850.40$

Girls apparel, ages 2 to 15 1,301.00$

Apparel for children under age 2 1,506.20$

Footwear for boys & girls 440.00$

Airline and ship fares and school bus fares 579.90$

Healthcare 1,494.90$Toys, games, arts and crafts, and tricycles 1,520.00$

Other entertainment 3,135.80$

Education 6,003.50$

Out-of-town trip expenses 4,040.70$

Total Indirect Spending 22,861.00$

Total Est. Grandparent Household Spending in 2009 51,951.51$


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NotesonTable21. Derived by multiplying the rate of spending of grandparent households in 2007 by the

estimated number of grandparent households in 2009.

2. Direct spending on school lunches includes only 50% of spend for the 55- to 64-agecohort as part of this cohorts spending might be attributable to spending on highschool age children.

3. Direct spending on boys apparel, ages 2 to 15, includes only 50% of total spend in

this category for the 45- to 54-age cohort as part of this spending might beattributable to spending on older children.

4. Direct spending on girls apparel, ages 2 to 15, includes only 50% of total spend forthe 45- to 54-age cohort as part of this spending might be attributable to spending onolder children.

5. Indirect spending on airline, ship fares and school bus fares includes only 50% oftotal spend for all age cohorts as part of this spending might be attributable tospending on adult children rather than grandchildren.

6. Indirect spending on education does not include college tuition spending of the 45- to64-age cohort as this age cohort is not likely to have any college-age grandchildren.


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AboutPeterFrancesePeter Francese is a widely recognized demographics and consumer markets expert. Hestarted American Demographics magazine and speaks and writes frequently ondemographic and consumer trends. He is the author of three books focused on better

targeting of consumers: Marketing Insights to Help Your Business Grow (2002),Capturing Customers and Marketing Know-How (1998) andHealth Care Consumers: A Handbook of Trends Techniques and Information Sources for Healthcare Executives(1986). His most recent book, Communities & Consequences, written with co-authorLorraine Stuart Merrill, analyzed the long-term implications of demographic trends forNew Hampshire.

Francese was the creator and author of a weekly newspaper column called PeoplePatterns, which reported on demographic trends for a business audience. People Patternswas syndicated in about 50 newspapers and later appeared monthly in the six regionaleditions ofThe Wall Street Journal.

Francese founded and became publisher of American Demographics magazine, whichquickly became the nations most authoritative source on consumer trends for businessleaders and was nominated three times for a National Magazine Award. AmericanDemographics is now part ofAdvertising Age.

He is the recipient of the Silver Bell Award from the Advertising Council fordistinguished public service. Francese holds a graduate degree from Cornell Universityand has served two terms on the University Presidents Council.

Among his other work, Francese is demographic trends analyst for Ogilvy & Mather. The

New England Economic Partnership has also appointed him to be their director ofdemographic forecasts.

[email protected]: 603-778-1779Fax: 603-778-1728


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AboutGrandparents.comGrandparents.com is the premier community for todays new generation of active,involved grandparents to foster connections with their grandchildren and their adultchildren.

The site offers content to inspire such connections, including child- and grandparent-friendly activities, travel ideas, compelling lifestyle features, expert advice, gift ideas andmuch more.

To facilitate communication among grandparents, children and their parents, visitors haveaccess to a range of online tools including groups, discussions, blogs, photo-sharing andvideo-chat applications.

Grandparents.com24 Union Square East 5th floor

New York, New York [email protected]

Media Inquiries: 646-839-8836 or [email protected]: 646-839-8820 or [email protected]


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TheGenesisofTheGrandparentEconomy

The July 7, 2008 issue of Advertising Age contained an article entitled The ChangingFace of the U.S. Consumer that caught the attention of Jerry Shereshewsky, CEO ofGrandparents.com. The article noted that there really should be a separate category in

the national GDP figures for competitive grandparenting by baby boomers. They can beseen in any Hanna Andersson outlet buying armloads of pricey kids clothes.

The Grandparent Economy is a product of a conversation between the author of thatarticle, Peter Francese, and Grandparents.com. Franceses deep curiosity aboutgrandparent spending combined with the fact that no similar measurement had been donegave Grandparents.com the ideal opportunity to step in and commission this project.


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i Based on 2007 Bureau of Labor Statistics Consumer Expenditure Surveysii Based on 2007 Bureau of Labor Statistics Consumer Expenditure Surveys

iii Based on 2004 U.S. Census Bureau Survey of Income & Program Participation (SIPP)and data from the Census Bureaus population estimates and projections programiv 2004 U.S. Census Bureau Survey of Income & Program Participation (SIPP)v

Based on data from the U.S. Census Bureaus population estimates and projectionsprogramvi

Calculated based on 2007.Federal Reserve Bank Survey of Consumer Financesvii

Based on data from the Census Bureaus annual Current Population Surveyviii 2007 U.S. Census Bureau American Community Surveyix Based on the Bureau of Labor Statistics annual Consumer Expenditure Surveysx

Based on 2004 U.S. Census Bureau Survey of Income & Program Participation (SIPP),and Census Bureau population estimates and projections programxi

Grandparents.com Survey: The Impact of Multigenerational Households in America(January 2009)xii Bureau of Labor Statistics Surveysxiii Based on 2007 Bureau of Labor Statistics Consumer Expenditure Surveysxiv

The Boston Globe, March 3, 2009

2009 Grandparents.com, LLC. All Rights Reserved. (April, 2009)

Documents

The Grandparent Economy April 2009