4 Tips that can help the sandwich generation to survive in 2013

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By: Good Nelly
on 28th Mar,2013

The tough economic condition of the country has made a significant impact upon the sandwich generation.
4 Tips that can help the sandwich generation to survive in 2013

The tough economic condition of the country has made a significant impact upon the sandwich generation. The ever increasing medical expenses and the tuition costs are making a bigger hole in the pockets of the middle-aged people. As per recent report published by the Pew Research Center, nearly 27 percent of the sandwich generation offers primary assistance to adult children, and almost 21 percent of the middle-aged people offers financial assistance to parents aged 65 or more.

Financial tips for the sandwich generation

It is already difficult to manage your credit card and utility bills in this tough economic condition. However, it's even more difficult to fulfill the financial needs of your children and parents. You feel like being sandwiched between the old and new generation. Parents expect to get financial support from you. On the other hand, it's simply not possible to neglect your children too.

It is not a good feeling to be sandwiched between the baby boomers and the generation Y. You feel like you're being trapped inside a financial vase and can't come out of it. However, the situation is not as bad as it seems. You can handle your midlife financial crisis with the following 4 tips.

1. Watch out for tax deductions: It can be tricky to file tax returns when you're managing people from different generations. You can get tax deductions for children and caregiver expenditures. If you've an adult son/daughter living in your home, then also you may get tax break but only if his/her income is within a certain limit.

2. Don't touch your savings accounts: You may feel hard pressed to use your savings accounts for lending a helping hand to your dependents. However, no matter how much you're under pressure, don't exhaust your savings accounts. In stead, re-evaluate the financial requirements of your children and parents. Analyze the insurance needs of your parents before buying any policy.

Remember, the pains you've endured to save money in the last few years. If you exhaust your savings accounts today, then you'll have to make double effort to save money in the coming months. Ask yourself if you're ready for that. Besides, you also need to think about the emergency situations. If you've no savings, then you may have to borrow money from financial institutions to meet emergency expenses. Now, this won't be good for your financial health. Would it be?

3. Re-check your financial health: Are you following a financial plan that has been formulated several years ago? If yes, then you should know that the dynamics of the national economy has changed completely. So, your current financial plan may not help you tackle the fresh challenges everyday. Re-check your retirement savings plans and budget. Consider rebalancing your portfolio. Change your investment strategies to reap profit even in an uncertain economy. 

4. Find out the ways to save money: There is no 100 percent guarantee that your kid will get a job after graduating from a private college. So, ask your teen to complete his/her education from a community or in-state college. There are various perks of studying at in-state college. For instance: low transportation cost and low tuition fees. Other than that, you can save on boarding cost too as your kid can stay at the home and continue his/her studies.

Try to make your children self-dependent. Ask them to participate in the work-study programs. Encourage them to do part-time jobs, as this would help them to meet their own expenses. Watch out for the scholarships and the financial aid programs. Explore all the avenues to reduce your financial burden.

The sandwich generation has been facing emotional and financial challenges all the time. After all, it is not easy to fulfill the demands of both the young and old generation simultaneously. Nevertheless, if the sandwich generation follows the aforementioned tips, then it won't be impossible to emerge as a winner in the midlife tug of war. 

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