granny bank
n. Savings held by grandparents and used to pay for their grandchildren's education, first home, and other expenses.

Example Citation:
God bless the granny bank. It's helping to fund tens of thousands of college educations.
—Jane Bryant Quinn, "Praising the Granny Banks," Newsweek, April 29, 1996

Earliest Citation:
The granny bank. A grandparent's savings aren't counted as part of your family's assets, so they don't diminish your child's eligibility for student aid. Every year, a grandparent can pay part or all of the child's tuition directly to the school — and give the child $ 10,000 — all gift-tax-free.
—Jane Bryant Quinn, "Save First, Then Borrow," Newsweek, April 29, 1996

Notes:
This phrase is facing oblivion. Newsweek columnist Jane Bryant Quinn has used it twice, and it has a few hits on the Web, but that's about it. Too bad, because it's a useful term. Perhaps as more wealthy boomers become grannies over the next few years, the phrase will find a niche in the language.

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