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Financial readiness in the sandwich generation


Being financially prepared yourself is really just one third of true financial readiness needed if you are part of the sandwich generation. Your parents and kids also need to be financially ready or it can cause financial concerns for you.
 
Why is it important to prepare your kids and your parents?
Any financial setback or issues that impact them likely will become your financial obligation. Helping keep your kids from experiencing money problems and understanding what financial concerns your parents may have will be important for your planning.
 
Where do you start with kids in regards to financial readiness?
It starts with teaching them basic money concepts that include needs versus wants, saving for major expenses and smart habits when it comes to shopping.  Teaching financial habits can start as early as 8 or 9 and should continue well into their twenties.
 
Are there ways you can teach your kids these skills?
One of the best is to give them an allowance and make them responsible for some of their everyday living expenses out of this allowance. Responsibility is the best teacher of spending wisely.  Increase their allowance as they get older and increase their expenses accordingly.
 
What about making sure your parents are ready?
It starts with making sure they have a solid estate plan and also that you understand their current financial situation. Your parents should also be talking to someone in the family so that if they need assistance, someone is prepared.
 
What are some of the issues that parents have that can impact you?
A couple of the major ones are not having appropriate health insurance coverage and the other is heavy debt. If you are aware of these situations early, you can better plan to help them and find ways to decrease the financial impact to you.  Remember, your parents are going to be reluctant to reach out or let you know that they might have financial troubles.
 
How can the person in the middle be financially ready?
It starts with building a solid financial foundation in your own life. This will help you better deal with any issues that might come from your children or your parents. The other part is being willing to talk money with your parents and your kids. Money is often difficult for families to discuss but the more you understand about everyone’s situation, the better prepared everyone can be.
 
Is there any other advice for the person in the middle?
Yes, establish a strong team of individuals who can help you with the financial issues that span the generations of your family. You may be dealing with Medicare, social security, student loans, retirement planning and estate planning all at the same time. No one can know it all, find the team that can help ease the stress of handling these situations.
 


Posted: 10/27/2017 with 1 comments

Categories: Estate Planning, Kids and Money, Money Matters, Planning



Comments
Adam
This is such a valuable information thanks for sharing
10/29/2017 2:22:35 PM

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