The Economics of Grandparents Raising Grandchildren

When parents can't or won't care for their children, grandparents step in—and it has real economic consequences. In the United States alone, roughly 2.5 million grandparents are raising their grandchildren, a number that has grown significantly since 2000. This episode explores the hidden economic burden of 'skipped-generation households' on retirement savings, labor force participation, and public benefits. Lucas and Luna examine data from the U.S. Census Bureau and AARP, compare the phenomenon to similar trends in Japan and Italy, and ask whether policymakers are accounting for this form of invisible caregiving in discussions about aging populations and social safety nets. A specific focus on the financial trade-offs: a grandparent who leaves the workforce to raise a grandchild loses an average of $300,000 in lifetime earnings and Social Security benefits. With the opioid crisis and economic instability driving this trend, the episode asks whether the economy is built to support families that don't fit the nuclear model. #Grandfamilies #GrandparentsRaisingGrandchildren #SkipGenerationHouseholds #CareEconomy #AgingPopulation #RetirementCrisis #SocialSecurity #OpioidCrisis #LaborForceParticipation #CensusBureau #AARP #PensionEconomics #IntergenerationalCare #FamilyPolicy #Economics #Demographics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo