Are you part of the “sandwich generation?” This group, generally between ages 40 and 59, is made up of people juggling the responsibilities of raising children, caring for the needs of aging parents or other relatives, and managing their own concerns, such as funding a secure retirement. About half of this group has a parent 65 or older and are either raising a young child or financially supporting an adult child, and 15 percent provide financial support to both a parent and a child, according to the Pew Research Center. There are ways to minimize the financial demands of being pulled in two directions, according to the Pennsylvania Institute of Certified Public Accountants.
One big family home
Housing costs can be the largest items in a household budget. If your adult child or a parent is struggling to cover expenses, consider combining your households. This can give a child the chance to save for the future or lower the budget burden for an aging parent. This step could also reduce other monthly expenses, including transportation, child care, home maintenance, or insurance.