Episode 3 of Charles Schwab's financial news video series, :60 Second in Money™, discusses grandparents' financial support of grandkids and the increase in prom spending. See below for the script in full.
Hello, and welcome to this week's edition of ":60 Seconds in Money" --a quick look at money-related news items we think are worth sharing.
From Charles Schwab, I'm Mike Cianfrocca.
According to a recent AARP survey, 40 percent of grandparents have spent $500 or more on their grandkids in the past 12 months, mostly for holidays or birthdays. In fact, 36 percent put "spoiling their grandkids" at the top of their priority list.
But good times aside, grandparents are also taking on significant financial responsibilities, with 37 percent helping out with everyday living expenses, and 23 percent with medical or dental expenses.
Grandparents can also consider helping their grandkids plan for their financial future by opening a Custodial IRA or by giving their 529 college savings a boost.
While an IRA or 529 contribution might not be quite as exciting a birthday present as, say, a pony, experts agree that it's a much better investment in the long-term... and considerably less likely to bite.
Now for our Tweet of the Week. Prom spending is way up this year, according to a new survey from Visa.
Proms must have come a long way since I was in high school.
Families with teens will spend over $1,000 on the prom, up 33% compared to last year. It's truly a family affair as parents contribute 61% of the costs, with kids covering the remaining 39%.
And not to be the fun police, but we think it's important to mention that investing some or all of that $1,000 could lead to a whole lot more than wrist corsages down the road.
Thanks for joining us for this edition of ":60 Seconds in Money." I'm Mike Cianfrocca.
And remember, when you want to talk about money, Talk to Chuck.
We'll give you more than just 60 seconds.
I'll see you next week.
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