The finding comes as the cost of raising children continues putting pressure on household budgets nationwide. BMO found that 82% of American parents say the cost of raising children has “gotten out of control,” while 86% say everyday expenses including daycare, after-school programs, summer camps and school supplies are making it harder to save for their children’s futures. Over three quarters of parents said financial support from extended family is essential to afford opportunities for their children.

“Raising kids has always been a labor of love, but right now, it is also a major feat of financial engineering with families torn between spending on the urgent and the important,” BMO U.S. Head of Consumer Products Robin Growley said in the report. “Whether you are budgeting for diapers or dorm rooms, the absolute best antidote to daily financial stress is a clear, actionable plan.”

And the role of the baby boomer generation isn’t just limited to writing checks. Among the parents expecting assistance, 43% depend on grandparents to provide childcare. Another 26% said family members would help fund their children’s futures through a 529 plan or another savings account.

This sentiment exemplifies a shift in how American families are managing an affordability squeeze. Instead of waiting on the so-called Great Wealth Transfer, younger families are already turning to older relatives for help.

According to Care.com’s 2026 Cost of Care report, parents are spending on average about 20% of their annual income on childcare—with about one in five parents spending over $30,000 a year on it. The U.S. Department of Health and Human Services has identified 7% of family income as a benchmark for affordable childcare.

While that’s a 2% decrease from 2025, the report found that the mental health toll increased, with about 80% spending almost every waking hour focused on someone other than themselves. And that has led to a 5% increase in parents who have considered suicide or self-harm.

“Parents are being pushed well beyond their limits by the demands of caregiving,” Brad Wilson, CEO of Care.com, said in the report. “If this continues, care pressures risk pushing more parents to cut back or step away from their careers. That will only deepen financial strain and emotional stress, trapping them in a system that continues to fail them.”

Housing is also a major hurdle for these families. BMO’s research found 60% of Gen Z homeowners and 57% of Millennial homeowners said they could not have purchased a home without financial support from their families. Nearly six in 10 Gen Z adults also expected to receive or ask financial help from parents or grandparents.

This need for family assistance is emerging alongside a historically large concentration of wealth in older Americans. Cerulli Associates, a market research firm, estimates that $124 trillion in wealth will transfer through 2048, with nearly $100 trillion coming from baby boomers and older generations. 

However, that wealth won’t be evenly distributed. In Q2 2026, the top 1% of households by wealth held roughly 30% of total assets, according to Federal Reserve data, compared with about 5% held by the bottom half of households.

The BMO report also found that proximity makes a difference: 45% of Americans with young children live close enough to family to receive help. Those parents reported saving an average of $1,915 a year on childcare and $1,443 on groceries compared with parents without that nearby family support.

But that comes with trade-offs, with 70% of parents getting family support also being responsible for the financial or emotional well-being of their aging parents, compared to 45% of parents without family nearby. About seven in 10 parents living near relatives who provide childcare identified as being part of the “sandwich generation,” simultaneously supporting children and aging family members.

“Most people make decisions to live near family with their hearts, not their spreadsheets, but those choices carry real financial consequences. Having a grandparent help raise your kids can be one of life’s greatest gifts, but family caregiving is often a reciprocal arrangement—and it can be a lot when you’re already stretched thin,” BMO’s Growley said.