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Raising grandchildren? You have options |
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In addition, most state social services departments issue child-only grants, typically around $200 per month and
funded through Temporary Assistance for Needy Families, or TANF, which do not consider the grandparents' income when determining
eligibility. Low-income families may be eligible for larger TANF family grants. In addition, children whose parents are deceased,
as well as those who meet other conditions, may be eligible to receive a monthly stipend through Social Security.
Get respite from local clubs
Grandparent caregivers who need someone to watch their grandchildren for a few hours after school until they get off work can turn
to local organizations, such as the Boys & Girls Clubs of America or the
YMCA, for low-cost options.
If you feel hesitant about tapping federal or local resources because you think you have enough money to get by
without help, make sure you double-check your math before you pass up the assistance. "In today's age, you might think that you're
financially independent, but it depends on how you model your retirement," says Call. "Even if you're
worth several million dollars, it may not cover you, depending on your lifestyle and how long you live."
Still feel uneasy? Consider investing any financial assistance you get into a 529 plan to help offset the cost of
your grandchildren's college education.
Consider college costs
Even if the grandchildren's day-to-day living expenses don't affect your budget, it's easy to get in over your head when you tack
on the cost of paying for college. Proceed with caution before you tap your nest egg to foot the bill.
"You can finance college,
but you can't necessarily finance your retirement," says Frank X. Addonizio, financial adviser, Ameriprise Financial Services.
"Don't feel guilty if you can't cover the full bill."
Fortunately, your grandchildren have numerous options for reducing the cost of their college educations. Simple
things, such as living at home and commuting to a community college or public university, will shave thousands off the total cost.
Plus, filling out the Free Application for Federal Student Aid, which determines the student's eligibility for grants, scholarships and federally subsidized loans and the
estimated family contribution, or EFC, toward college expenses, can ease the financial burden. Although your income and assets will
factor into the equation if you've adopted your grandchild, it's still worth taking the time to apply, as your grandchild may
still be eligible for some financial aid.
Should your grandchildren need to take out loans to pay for school, you can help reduce the burden without
absorbing the full cost by covering the monthly payments for a few months after they graduate to give them time to get on
their feet.
If your grandchildren have their hearts set on a private university and you can't afford to send them there
without jeopardizing your retirement, be upfront with them about how much, if any, you can contribute toward the bill, as well
as what expenses they will be responsible for on their own. Once they calculate the true cost over four years, the sticker
shock may convince them to make more economical choices.
Seek support groups
Above all, it's important to remember that you're not in this alone. Many communities have support groups available for
grandparents raising grandchildren, which provide everything from social activities to "been there, done that" advice.
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"Caregivers often feel alone and isolated, not knowing where to turn, who to turn to, where to start," says de Toledo. "When they join a support group, they meet other families who've been in a similar situation and
who can help them navigate the system to get the resources they need. They need to know that there's help out there, that
they don't have to do this alone, and that their feelings of being on a roller coaster from day to day are perfectly normal."
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