Survey: Grandparents leave billions to grandchildren in past five years

America's grandparents have handed over more than $370 billion to grandchildren within the last five years. And as the economy gets worse, they feel even more compelled to help.

The MetLife Mature Market Institute's "2009 Grandparents Poll" of adults age 45 and older with a grandchild under the age of 25 reveals these grandmas and grandpas prefer to give money while they're still alive, rather than leaving a lump sum in a will to their grandchildren. Most (83 percent) are giving cash, and the average amount is $8,661. Forty percent are giving money for general purposes and 26 percent intend for their grandchildren to use it for education.

The survey shows grandparents are particularly generous lately, as those with less income and a lower net worth are giving a higher percentage than they did before the economic downturn. But that generosity comes at a price, according to the survey; One in five reports it's had a negative impact on their "financial picture."