Effective Financial Planning for the Sandwich Generation

A growing number of adults are part of the sandwich generation, juggling the demands of caring for both kids and aging parents. This issue isn’t limited to any one country — it’s a global challenge. By 2050, there will be twice as many people aged 65 and older as there are children under 5, and nearly the same number of those under 12.

With increasing daycare and healthcare costs, juggling multiple economic hardships can feel overwhelming. In this guide, we’ll look at the meaning of the term “sandwich generation” and share simple strategies to help you navigate this balancing act.

What is the Sandwich Generation?

Those who are caught between the demands of caring for their dependent children and providing support to their aging parents belong to the “sandwich generation.” It includes adults between their late 20s and their 60s. However, the most common age group is often in their 30s to 50s. Juggling these demands takes away time and money they could use to build their own future.

A brief explanation of the sandwich generation

The term “sandwich generation” originated in the 1980s, mainly to describe women juggling the demands of raising kids while also caring for aging parents. Today, this situation is more common and intense than ever. More and more people find themselves in this position for longer stretches of time.

Life expectancy has increased by about six years since the early 1980s, now averaging just over 73 years. At the same time, data shows that nearly half of adults aged 20 to 29 live at home — up from 32% in 1991. With each generation facing its own set of pressures around finances, work, and health, many adults — especially women — feel the weight of being caught between these responsibilities for years.

Financial management to avoid falling into the sandwich generation trap

If you don’t want your children to learn the meaning of “sandwich generation” the hard way, focus on teaching your young about finances:

Teach them how to create and stick to a budget.
Help them differentiate between essential expenses and discretionary spending.
Encourage regular saving, even if it’s a small amount.
Discuss the importance of earning their own money through chores or part-time jobs.
Teach them how to help their money grow over time.

Of course, you also need to follow the same principles in your own life that you want to teach children through financial education.

3 types of sandwich generation people and their characteristics

The sandwich generation isn’t one-size-fits-all, and people experience it differently based on their situations. Let’s look at three specific types:

Traditional sandwich generation	Club sandwich generation	Open-faced sandwich generation
This group matches the usual meaning of sandwich generation — juggling the responsibilities of raising their kids while also caring for aging parents.	This type takes the traditional model a step further. The meaning of sandwich generation, in this case, is that not only are they looking after their children and parents, but they might also be caring for grandparents or other relatives. With so many layers of caregiving, the emotional and financial pressures really pile up.	Here, the meaning of sandwich generation is individuals focusing more on caring for their older relatives or parents without having young children at home. However, they may still be involved with adult kids or younger family members. Their main challenge is managing the healthcare and living arrangements for their aging loved ones.

Challenges of the sandwich generation

Now that you understand what the sandwich generation is, let’s look at a couple of problems and possible solutions to them.

Difficulty in self-care

Unexpected visitors that disrupt your schedule and personal time are a common problem for the sandwich generation. Set clear visiting hours to maintain your routine. If someone drops by unannounced, feel free to ask for their help!

Also, with a packed schedule, you might feel like you’re always busy, which leads to burnout. Make time for regular breaks — whether it’s a quick meditation, a workout, making some financial moves, or just some quiet time. Treat these breaks as must-do appointments.

Focusing so much on caregiving can make you feel lonely. Make an effort to connect socially and schedule outings with friends or join community activities. These interactions will provide a much-needed emotional boost and a break from your responsibilities.

Health issues from caring for parents and kids

The stress we mentioned above can be linked to serious health issues because people neglect their own needs. They skip doctor’s appointments, opt for takeout instead of preparing healthy meals, or miss out on exercise altogether. Even though these choices save time, they can result in fatigue and health issues like obesity and diabetes.

Make sure to schedule regular check-ups and incorporate small, manageable forms of exercise into your daily routine, like a short walk or stretching. Meal prep can also make a difference.

Balancing personal life and career

Sandwich generation caregivers dedicate billions of hours each year to providing unpaid care. Still, many of them often feel invisible and unappreciated both in their places of work and in their personal lives.

Difficulty concentrating on household and office work

Many people in the sandwich generation struggle with a poor work-life balance. Caregivers usually find it hard to concentrate, which affects their productivity at home and work.

What can help is establishing separate, designated times for work and family responsibilities. Also, use tools like calendars or to-do lists, and ideally, seek support from family or friends to lighten the load.

Impact of stress and inability to prioritize

As priorities become muddled, caregivers may miss deadlines, forget appointments, or neglect their lives in general. This only exacerbates feelings of burnout and frustration from financial burden. Don’t ignore these feelings. Instead, tackle them using some of the strategies mentioned earlier.

Financial struggles

A major part of being in the sandwich generation is family finances. Many families find this uncomfortable and it leads to confusion about how bills are paid or who to contact for help. Even worse, it’s assumed that the middle generation will handle everything.

To plan better, start by understanding your own financial needs — look at your income, expenses, and any support you provide. Next, assess your parents’ finances. Create a spreadsheet detailing their budgets and discuss what they can afford and where you might need to step in. For your children, consider ways to reduce costs, like cutting back on daycare or finding family help. If they’re in college, explore scholarship options.

On top of this, get into your own pension fund preparation and look for ways to generate additional income. This could be through side gigs, freelance work, or investment in stocks or other assets.

Economic challenges in meeting your children’s family needs

If your adult children have moved back home, it’s important to set clear financial boundaries. You may have expected to stop supporting them once they became adults, but that often doesn’t happen. Create a timeline for their independence and have them write down their goals for finding a job or moving out.

Encourage them to contribute financially, like paying rent or helping with household costs. If you’re also caring for grandchildren, be clear about what support you’re willing to give.

Summary

Being a member of the sandwich generation is tough, but it also gives you a special opportunity to connect with both your kids and your parents. Recognize where you stand and try to set clear boundaries for your time and money. These boundaries are crucial — not just for your peace of mind, but also for being able to help your loved ones in a way that works for you. Perhaps more importantly, it’s time to focus on building your own wealth and security. You want to keep those important relationships strong while looking out for your future.

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