Word Spy - 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.

Categories:

Money
Pregnancy and Parenting

Posted on May 5, 1999