Sorry, I don't have any great advice. My mom is the same way. She buys all this expensive stuff and then tries to give it to me, so she can buy new stuff. She tries to manipulate me into keeping (storing) her stuff that she can't fit in her closets, but doesn't want to get rid of. Then, she tries to guilt me into keeping it. "I paid $200 for that sweater. If you don't want it, I'll give it to aunt Helen." Then, we get into a fight because she has no money for her retirement and is in debt. Then, she goes, "Oh, I'll just move in with you." Ah, no you won't.
I don't know if my mom or your grandma will ever see that they have a problem. It's not easy to deal with though. Just hang in there and do what you are doing.
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