Are you a member of the sandwich generation, where you have to pay for your child’s college as well as your parent’s retirement needs? Then, you are at a juncture in life where both your kids and parents need your financial support. It is a tough phase, unless well-planned. Here we suggest a few tips for you to be at ease and plan efficiently.
Converse Together: No, more effective way to manage finances than discussing with family members. Get your family together. Talk about money matters. Do not worry about the brainstorming sessions, in fact, it is the need of the hour. Every member can be exposed to the situation and can get the scope to understand and contribute from their side in one way or the other. You may be surprised to see the younger generation stepping up to make better contributions and the senior citizens trying from their side to feel useful.
Be Realistic: Be realistic when discussing and planning. You need not go out of your way to let certain things happen. For instance, you can decide to reduce tuition bills by selecting an affordable college for your children. Talk to kids on how much you can contribute towards their education. If it is beyond what you can do, do not hesitate to go for an student loan that has to be cleared by your them after college.
Prioritize Your Retirement Needs: Putting your retirement needs aside can be the dumbest thing to do. Because there is no point in depleting all your savings for kids’ higher education and ending up penny-less by the time you retire. Do not become a burden to your kids during your retirement phase, rather let them clear their study loan and subsequently plan for their future without really focussing on your financial requirements.
At the same time, concentrate on maintaining your health. Plan ahead for healthcare expenses. Automate payments and savings to live with the leftover amount. Simply, save as much as possible and invest through the right channels.
In conclusion, being a part of the sandwich generation could always be tricky! But, you need not panic. Simply focus on being realistic and stick to your basics. Do not go with emotional decisions. For more advice on personal finance and financial planning, approach online financial planners like ArthaYantra. We guide you in reaching all your money goals of life.