Managing change in changing times. Sounds like a simple statement however it holds a significant amount of weight as our population shifts.
The multi-generational squeeze felt by Gen X, also known as “the sandwich generation,” are being pulled in a number of directions while trying to manage and prioritize their parents, children, and juggle their own personal responsibilities.
The sandwich generation often has many overlapping priorities, and unfortunately their own needs and well-being are likely to take a back seat. With the right plan in place and advice from an Advisor, you can rest easy knowing you’re financially secure to handle all life’s squeezes.
Understanding Your Parents Financial Situation
To effectively take care of your parents' financial needs, it's important to understand their current financial situation. Sit down with them to have an open and honest conversation about their income, expenses, assets, and debts. Then take a deeper dive into their preference on how their money is dealt with. This will help you identify any potential gaps or areas that need attention.
Additionally, it’s important to discuss their goals and wishes for the future. Do they have a retirement plan? Are they prepared for any additional healthcare costs or long-term care needs? Understanding your parents needs and goals will allow you help make a more comprehensive financial plan. Don't forget to update any legal documents like wills, power of attorney, and healthcare proxies to ensure their wishes are properly documented.
Assess Your Current Financial Plan & Goals
Caring for aging parents, as well as your own children can be emotionally and financially challenging. Before taking on this responsibility, it is important to make sure your own financial situation is in order and prioritized.
Look at your current financial plan, what funds do you currently have set in place? Helping your parents can be a good financial guide for your own future and can help you determine what you want your own retirement to look like. Take this learning experience to look at your retirement plan – what is my ideal retirement and how will I achieve it?
On a plane they tell you to put on your own mask first before helping others - the same applies with your finances – prioritize your own needs, and you will be more successful in helping your family.
Engage Your Younger Family Members
An important life skill is financial literacy, and starting to teach your children at a younger age will only benefit them as they grow into adulthood. Whether it’s helping around the house or getting an after-school job, encourage your children to make some money of their own. Once they do, talk to them about the possible ways they can use their earnings, whether it’s for an immediate goal such as a toy or a trip to the ice-cream store, or a more long-term goal, such as a cellphone. Your children can benefit and learn from your own financial experiences – don’t be afraid to share your successes and failures.
You can help mitigate the feeling of that generational squeeze by working with an Advisor. Schedule periodic check ins to ensure that your financial plan is always on track. Book an appointment today.
