Approximately two-thirds of all grandparents in America have provided financial support to their grandchildren in the last five years, totaling $370.7 billion in financial assistance.

Of the 66 percent of grandparents surveyed by Connecticut’s MetLife Mature Market Index, 40 percent said they gave assistance to grandchildren for general purposes, and 26 percnt said they gave money to help fund education. The average amount provided was $8,661.

Rather than curtail their generosity, one quarter of survey reposndents said the economic downturn had actually led them to increase the amount of assistance given.

Interestingly, the data indicates that those with less income and net worth are giving a higher percentage than they did before the most recent economic downturn – and some of them are feeling the pinch, with more than one in five (22 percent) overall reporting that their generosity has had a negative impact on their own financial picture.

"The survey points to the universal bond between grandparents and their grandchildren, and the generous nature of grandparents, regardless of asset and income levels," said Sandra Timmermann, director of the MetLife Mature Market Institute. "Grandparents are more willing than ever to help their grandchildren, even though they may be suffering economically. While they clearly want to make sure their grandchildren are financially secure, only a small percentage of those polled said they have talked to their grandchildren about the importance of hard work, saving for a rainy day and intelligent use of credit."

The majority of respondents (78 percent) said it’s more important to distribute smaller gifts throughout their lifetimes as needed, rather than leaving a larger sum of money as a legacy at death.