Planning for Your Parents, Your Kids—and Yourself: The Sandwich Generation's Dilemma

Erica Conover |

If you're simultaneously supporting aging parents while raising children or helping adult children financially, you've joined the "Sandwich Generation"—a growing demographic facing unique financial challenges. At Moore Financial, we understand the delicate balance required to care for multiple generations without sacrificing your own financial security.

The Sandwich Generation by the Numbers

The financial pressure on middle-generation caregivers continues to intensify:

  • Nearly 1 in 7 Americans provides financial support to both an aging parent and a child
  • 47% of adults in their 40s and 50s have a parent age 65+ while either raising a young child or supporting an adult child
  • The average caregiver spends $7,000 annually on out-of-pocket caregiving costs
  • 66% of caregivers have had to make workplace accommodations, affecting their earning potential

The Three-Generation Balancing Act

Supporting Aging Parents

Many sandwich generation members find themselves unprepared for the complexity of helping aging parents with their finances:

  • • Have crucial conversations early: Discuss your parents' financial situation, insurance coverage, and care preferences before a crisis occurs
  • Understand their resources: Help organize information about Social Security, pensions,investments, and insurance policies
  • Explore care op.ons: Research costs for different levels of care from in-home assistance to full nursing facilities
  • Consider legal preparations: Ensure proper documents like healthcare proxies and powers of attorney are in place

Guiding Your Children

Whether supporting young children or helping adult children, educational costs often represent the largest financial commitment:

  • Set clear boundaries: Determine what educational expenses you can realistically support
  • Explore efficient funding vehicles: Understand the benefits and limitations of 529 plans and other education funding options
  • Balance support with independence: Create a framework that provides assistance while encouraging financial responsibility
  • Consider the impact of boomerang kids: Establish clear financial expectations if adult children return home

Protecting Your Own Financial Future

The most common mistake sandwich generation members make is sacrificing their own financial security:

  • Prioritize retirement savings: Resist the temptation to reduce retirement contributions during caregiving years
  • Protect your earning capacity: Consider how caregiving responsibilities might impact your career and explore flexible work arrangements
  • Maintain adequate insurance: Review disability, life, and long-term care coverage to protect against disruptions
  • Create a sustainable caregiving budget: Determine what financial support you can provide without jeopardizing your own future

Practical Strategies for the Sandwich Generation

Maximize Available Resources

  • Explore often-overlooked benefits like the dependent care FSA for both childcare and elder care
  • Investigate tax benefits for supporting dependents across generations
  • Research community and government programs that provide assistance for seniors

Coordinate Care Responsibilities

  • Involve siblings and family members in both planning and direct support
  • Consider how assets like housing can be optimized across generations
  • Explore creative solutions like multigenerational housing when appropriate

Protect Your Financial and Emotional Well-being

  • Work with a financial advisor who understands multigenerational planning
  • Join support groups for caregivers to share resources and experiences
  • Schedule regular self-care to prevent burnout

The Moore Financial Perspective

At Moore Financial, we specialize in helping sandwich generation clients create integrated financial strategies that address the needs of all three generations. Our approach focuses on finding the right balance between generosity toward family and protection of your own financial security. Feeling squeezed by multigenerational financial responsibilities? Contact our team to develop a balanced approach that cares for your loved ones while protecting your future.