Right now, according to Pew Research, nearly 68 million U.S. adults are caring for or helping support a parent over 65 AND at least one child under 18 or a young adult who still needs some financial support. They call these Americans the sandwich generation, falling between the older and younger groups. If you fit into that category, we have some tips to help you navigate this phase of your life.
- Communicate Openly: Talk openly with your parents about current financial situations and realistic expectations. This might include what bills to pay, overall debt, medical expenses, chauffeuring to and from doctor appointments and more.
- Prioritize Wants and Needs: Ensure everyone’s basic food, clothing, medical, and shelter needs are met first. Then, if it’s in the budget, talk to both your parents and children about their wants and whether or not it fits into the/their budget.
- Talk About Money (Often): Don’t shy away from conversations about finances and money — even with your kids. With your parents, talk about current income, including pensions, Social Security, and other government assistance. You don’t want to be caught off guard and expected to cover a bill that was not paid in full. With teens and young adults, have open discussions about their plans, steps that can be taken to achieve their goals and opportunities for them to contribute financially. Be honest about how much you can comfortably contribute. If your funds are stretched, speak up as early as possible so everyone can plan accordingly.
- Plan for Your Retirement: Just because your time and money are being pulled in several directions, don’t forget to fund your future. Maximize your employer’s retirement program and put as much away toward the future as possible.
- Optimize Insurance Options: Review your life and health insurance and those for your parents and children. Make sure everyone is adequately covered.
- Research Government Benefits: Chances are your parents qualify for some or additional government benefits. Explore Medicare and Medicaid. Additionally, look into childcare subsidies or tax credits to help with costs associated with your kids.
- Seek Support: The pressure to provide financially and emotionally for parents and kids can be exhausting. Therapy or the ear of a good friend can do wonders to reenergize and refocus your efforts.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.