Life in the sandwich generation comes with its fair share of challenges and rewards. We began by discussing the difficulties of caring for your aging parents and then moved on to how you can help your adult children make their transition to independence successfully. There is a logic to considering the demands on the sandwich generation in this order.
Let’s review:
Taking Care of Yourself
While this series is about helping your parents and children, we began with the most important step: taking care of yourself. It’s great that you’re helping take care of your family, but caregiver burnout is a very real thing that you need to watch out for. By following the three simple steps in this piece, you can help prepare and protect yourself – and your family – for the potential dangers of overextending yourself.
Your Aging Parents
While you may have been involved with navigating your own finances your entire adult life, taking on the role of handling someone else’s finances takes work. One reason for beginning this series by discussing the needs of your aging parents is that doing so offers a better perspective for your own financial interests and those of your children. Looking at your parents’ financial situation in their later years can inform how you approach your own finances and what you teach your children about money.
We discussed the importance of setting up a time to regularly discuss finances with your parents. At this time, you can develop a budget for them as you begin to unpack the details of their current finances, in preparation for a financially secure future.
We also talked about the importance of checking in with your parents on a regular basis. You’ll want to learn their roadmap and establish regular times to look at their finances and discuss upcoming expenses.
After that, we talked about the pros and cons of various housing options for your aging parents. This is especially important to discuss before it becomes a necessity, so your parents can communicate where they want to live before a choice ends up being forced on them by life circumstances.
Lastly, we discussed end of life decisions. It may not be a conversation anyone is looking forward to having, but the clearer everything is made now, the better you and your parents will feel if anything should happen to them, particularly if their memory is affected in any way as they age.
Your Adult Children
You can approach your adult children’s finances in much the same way we described doing with your parents. They will also benefit from regular meetings where you help them form a budget and discuss the new expenses that are coming their way.
Our first piece regarding caring for your children discussed how you can help prepare your kids for financial independence. Establishing healthy financial behaviors begins with you, whether you’re paying bills or communicating openly about how you earn and spend money.
Next, we discussed the ins and outs of paying for college. While finances may not be a concern for you, there are several ways to approach paying for college, some more expensive than others. In particular, we discuss some of the finer points of how to use 529 plans and trusts.
Lastly, we looked into how to handle the question of children living at home. Millennials are living with their parents longer than any generation, so it’s important to be prepared for what life will look like if your kids want to keep living with you. As we previously mentioned, communication and patience are key here.
In Conclusion
We hope you’ve received a good idea of what it takes to effectively guide your aging parents and your adult children into financial prosperity. Just don’t forget to keep your own needs in mind, and as we mentioned at the beginning don’t be afraid to ask for help.
Challenges lie in the road ahead, but the rewards of getting this right outweigh any difficulty you may face. You have the unique opportunity to simultaneously care for two different generations and help them on their way.
Want some help thinking through how you can help your parents and children with their finances while protecting your portfolio? We’d love to talk.
