As millennials find themselves in the role of caregivers to aging parents, having to balance this with their own parental responsibilities, debt management, retirement saving and mortgage commitments, studies show that over 40% are in this situation, with almost 90% having to modify their work schedules to accommodate caregiving.
Professionals recommend open conversations with parents to understand their situations and needs, starting with their financial stability. Are there estate planning documents such as wills, power of attorney, and long-term care insurance in place? Knowing these can pave the way in managing their affairs when necessary.
Clarity on the extent of parents' needs, projected costs, and how these costs will be covered should be obtained. It's also crucial to establish boundaries and learn to outsource, decline, or take a step back when necessary.
In case of severe illness, the Family and Medical Leave Act (FMLA) is a resource; it allows for a work leave to address parental care. Numerous agencies offer assistance to seniors, providing extra help where required. Consulting with professionals- attorneys, financial advisors, and accountants can be beneficial as well.
It's not legally binding to cover parents' bills, so seek assistance from local and state government agencies if needed. Budgeting and tracking expenses is crucial, as is maintaining an emergency fund. While balancing these responsibilities, maintaining savings and retirement goals should be a priority. Be prepared for these facets to be short-lived if necessary.
To efficiently manage finances, especially under such pressure, urgent matters should be prioritized, including emergency savings, high-interest debt, and retirement contributions. This financial planning triage ensures every dollar spent aligns with long-term planning.
This millennial 'sandwich generation' faces various challenges but they can navigate this by understanding their parents' needs, assessing their financial stability, and initiating estate planning. Establish clear boundaries, reach out for professional assistance, review personal finances, recognize urgent expenses, maintain an emergency fund, and continue investing for retirement, no matter how minimal.