Financial Planning for the Sandwich Generation
Your complete guide to managing finances while caring for aging parents and children.
📌 Understanding the Sandwich Generation
+- Definition: Adults (typically 40-60 years old) supporting both children and aging parents.
- Key Challenges: Dual caregiving costs, retirement delays, emotional stress.
- Statistics: Nearly 50% of adults in their 40s/50s fall into this category.
💰 Budgeting & Financial Planning
+Creating a Family Budget
- Track income vs. expenses (childcare + eldercare).
- Use the 50/30/20 rule (Needs/Wants/Savings).
Emergency Funds
- Aim for 6-12 months of living expenses.
- High-yield savings accounts (e.g., Ally Bank).
🎯 Saving for Multiple Goals
+- Retirement: Prioritize contributions to 401(k)/IRAs.
- Education: 529 Plans or Coverdell ESAs.
- Long-Term Care: Insurance for parents (compare at AALTCI).
🏛️ Government & Employer Benefits
+Key Programs
- Social Security for parents.
- Medicare/Medicaid eligibility checks.
⚖️ Legal & Estate Planning
+- Must-Have Documents: Wills, Power of Attorney, Healthcare Proxy.
- Resources: Nolo for DIY legal forms.
📚 Additional Resources
+Books
- The Sandwich Generation’s Guide to Eldercare by Phillip D. Rumrill