Despite placing enormous value on their grandchildren’s education, most Australian grandparents are not opening their wallets to help fund it, according to a new national study commissioned by Futurity Investment Group.
The research, conducted by McCrindle, surveyed 1,000 Australian grandparents with grandchildren in formal education. It found that while 76% said they are personally invested in their grandchildren getting the education they need to succeed in life, only 29% provide financial support towards education expenses.
Among those who do contribute, the average amount is $1,998 per grandchild per year—roughly a quarter of the annual cost of public schooling and a fraction of what’s required for private education. Government schooling over 13 years now averages around $84,554 per child, while Catholic and Independent schooling comes in at $173,706 and $288,880 respectively.
Futurity CEO Sam Sondhi said the research shows “just how deeply grandparents care about their grandchildren’s future, particularly when it comes to education. But many are also grappling with their own financial realities, making regular contributions difficult.”
Indeed, 76% of all grandparents surveyed agree that education is becoming increasingly difficult to afford. Among those who currently support their grandchildren financially, 38% are already concerned about whether they can continue to do so in the long term.
Most grandparents who contribute are dipping into their own savings, with 65% relying on personal reserves rather than income. Others are using employment income (33%) or pension payments (23%), while just 15% draw from superannuation.
What’s more, the financial assistance provided is typically situational. Four out of five contributing grandparents (78%) said they provide money only when needed, rather than through regular support. For many, education funding is prioritised when opportunities or gaps arise.
The report also shows that among financially supportive grandparents:
- 41% help one grandchild,
- 34% assist two,
- and 25% support three or more.
Interestingly, the amount contributed per child doesn’t change dramatically depending on the number of children helped. Grandparents supporting one grandchild contribute an average of $2,093, while those helping two or more give $1,930 per child.
While fewer than a third of grandparents currently offer financial help, many plan to leave wealth behind for their descendants. Nearly three-quarters of grandparents (71%) intend to transfer a portion of their wealth to their grandchildren, with 32% planning to pass on 50% or more, and 10% planning to pass on their entire estate.
Education ranks second among the preferred uses for this inheritance. Fifty-six per cent of grandparents hope the money will go towards a house, 35% prefer it be used for education, while others cited life experiences and living expenses.
The intention is there, even if financial constraints get in the way. The report found that education remains a priority across generations: 95% of grandparents agree it is crucial for equipping young people with skills needed for life. And 69% describe themselves as actively involved in their grandchildren’s education in other ways—be it helping with homework, buying uniforms, or attending events.
Still, Futurity’s Sondhi believes more can be done to close the gap between goodwill and action. “We need to find ways to make it easier for grandparents who want to help but aren’t sure how, or who are worried about affordability. That’s where financial planning tools and education bonds can play a role,” he said.
The findings come amid broader concerns among grandparents about the economic challenges facing the next generation. The top worries were the rising cost of living (77%), housing affordability (72%), and potential economic downturns (42%). Close to 40% also worried the cost of education may limit their grandchildren’s prospects in life.
Sondhi added: “This research tells a story of deep intergenerational care. Grandparents are not passive observers—they are doing what they can, with what they have, to prepare their grandchildren for an uncertain future. Now is the time to better support them in that effort.”
The study’s release is part of Futurity’s broader advocacy work aimed at making education more affordable and accessible for all Australians.
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