Before gifting your grandchildren money, consider the hidden costs

April 5, 2026 — 5:00am

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Last week, I wrote about Australia’s fifth-biggest lender, the bank of mum and dad, and how parents across the country were digging deep to help their children buy houses. Often, they were doing this without a huge amount of planning or thought given to how it might affect them or their retirement.

Well, after a couple of lovely emails from readers this week, it turns out it’s not just the bank of mum and dad that’s doing some significant lending, but the bank of grandma and grandpa too (BOGAG? BOGMAGP? GAGBOG? Actually, you know what, let’s leave the acronym for this one).

A timely bit of research from Australian Seniors shows just how many grandparents are giving to their kids and grandkids – and the issues it’s starting to cause. (And for those who might be grandparent age but without grandkids, this applies to you too!)

Want to help your kids buy a house? Start here

Dominic PowellMoney Editor

On average, grandparents who provide support to their family are paying over $3000 a year, with more than........

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