If you support your parents, adult children, and even grandchildren, you’re part of the Sandwich Generation. Balancing these responsibilities while planning for your secure future can seem nearly impossible, and managing savings, bond repayments, credit card debt, school fees, and frail care can be financially and emotionally demanding.
It may be time to check in with yourself:
Can you afford to support children who should be supporting themselves?
How does this affect your current living expenses and future retirement savings?
How is balancing the needs of multiple generations affecting your emotional and mental health?
Have you assessed the long-term financial impact of supporting your parents and children simultaneously?
Can you still pursue your dreams and aspirations while supporting your family?
Will your adult children support themselves if something happens to you?
Tips to Manage the Balance
When It Comes to Your Children:
Encourage Responsibility and Accountability: Teach your children the importance of responsibility. Encourage them to find work, even if it’s part-time. Any contribution they make helps build their confidence and reduces your financial burden.
Support Beyond Finances: Assist with job applications, improve their CVs, and pay for coaching. Enrol them in courses or connect them with financial planners. Brainstorming creative passive or part-time income ideas together can be beneficial.
Set Boundaries: If your children return home temporarily, that’s understandable. But if this becomes a recurring pattern, set boundaries to protect your financial security. Teach them about money management and set a date when financial aid will stop.
Involve Children in Money Conversations: Start speaking to your children about money early and teach them skills for financial independence. Open discussions about money can encourage responsible financial behaviour.
Encourage and Celebrate Failure: Children need to fail to learn and grow. Let them navigate challenges and find solutions independently. Celebrate their efforts and resilience.
When It Comes to Your Elderly Parents:
Support Your Elderly Parents Early: Consider supporting your parents before their money is depleted. Contributing a smaller amount early on can help extend the lifespan of their retirement investments, delaying the need for substantial support later.
Research and Compare Retirement Care Options: Many retirees prefer live-in carers, which can be expensive. Research the costs of retirement or community care homes versus live-in carers for yourself and your parents. Make informed decisions based on long-term benefits.
When it comes to YOU:
While caring for your children and elderly parents may be extremely rewarding, you have to make informed decisions. You don’t want your children to eventually look after you if you deplete your retirement savings now by being wedged in the middle of two dependent generations. Meet with your financial planner and ensure that your long-term plan for your second chapter includes a fulfilling life for yourself plus provision for any long-term care needs. It is possible to navigate complex situations that balance your responsibilities with your own financial goals.
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