Being thrust

into the role raises many tough issues for grandparents. First and foremost,

how will they afford retirement while handling the added expense that

comes with raising a family? Providing food, shelter and clothing for

kids is expensive, and the average income for grandparent-headed households

is usually under $20,000.

Financial expert

Chris Farrell, host of Twin Cities Public Television's "Right on

the Money!" urges grandparents to think of themselves first. "You

can't help your grandkids unless you've taken care of yourself,"

he said. "While your inclination is to put the child's needs ahead

of your own, you actually are serving them better by looking out for yourself

first." With that in mind, Farrell offers five practical suggestions

for grandparents who face this situation.

Don't sacrifice

your retirement. "When money is tight, many grandparents wonder

how they'll live in retirement and pay for their grandchild's expenses,"

said Farrell. "Funding a secure retirement should be seniors' first

priority." Farrell cautions seniors against borrowing money from

their 401(k) plans. While it might be tempting to dip into money previously

earmarked for retirement, it's not a good idea ­ and could be trouble

in the long run. Grandparents should not stop saving for retirement under

any circumstances, especially if they're relatively young in age.

Still others

imagine they should forsake funding their retirement, and be putting money

into a college fund for their grandchildren. But this isn't the best use

of their money either. "The child can borrow to go to college,"

said Farrell. "The grandchild will have more time to pay back the

student loan as opposed to a grandparent who faces a more limited time

frame.

Know your

resources. Resource savvy grandparents will look to see if they qualify

for the TANF program. ­ (TANF stands for Temporary Assistance to

Needy Families.) TANF is a state-run program that offers financial help

to families with a low income. Know going in that rules affecting grandparents

and their grandchildren vary from state to state so you'll have to contact

the department of social or human services in your county or state to

find out more.

Be sure to

look for financial support and legal services assistance in your area.

State and Area Agencies on Aging across the country have instituted programs

and services to assist grandparent caregivers and help them identify and

access available services. You can reach them at (800) 677-1116 or www.aoa.gov.

The AARP Web site: www.aarp.org/grandparents also offers tips and information

for grandparent caregivers.

Make a will.

Establishing a will and initiating estate planning become especially important

for grandparents who are raising their grandkids. "Grandparents really

need a will, to make provisions for the child or children in the event

something happens to them," advises Farrell. "It's important

to work with an attorney, name a guardian and appropriately allocate assets."

Explore

health insurance options. If you are covered by medical insurance,

look into adding your grandchildren to your policy. If that's not an option,

many states offer health insurance to help grandparents with their medical

costs.

Find support.

It is also important to seek out emotional support. Grandparents who are

raising their grandkids are prone to psychological and emotional strain

as well as feelings of helplessness and isolation. They often neglect

their own physical and emotional health because they give priority to

the needs of their grandchildren. "It helps to reach out to others

in similar circumstances for support and ideas," Farrell adds.

While the role

of grandparents-as-parents isn't easy, with good planning and plenty of

support, there is a sense of joy and a daily sense of purpose and satisfaction

that can come from guiding youngsters through life. For additional information

from Chris Farrell on this and a variety of financial topics, visit the

"Right on the Money!" Web site, www.rightonthemoney.org.

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