The financial hardships of the sandwich generation. 

If you’re middle aged, raising your children while simultaneously caring for aging parents, you can consider yourself to be part of the sandwich generation. The sandwich generation typically consists of people in their thirties or forties who are responsible for the care of both their own children and aging parents, being “sandwiched” in the middle of the two generations. Being part of the sandwich generation can be challenging, taking a toll on your mental health, but can also be rewarding to know you’re able to support and help care for your whole family.

Aside from taking a toll on your mental health, being part of the sandwich generation can have a significant impact on your finances. When taking on the role of caregiver to an aging parent while raising your children, it’s important to consider the financial challenges ahead.

- Healthcare costs – Without adequate health insurance, you could be faced with covering medical bills, medications, treatments, etc., for your parent. This can be costly, especially if they have a chronic illness or require long-term care. If required, in-home care or assistance with daily activities can also be a significant expense.
- Housing costs – If your aging parent is planning to move into your home, you may need to modify your home to accommodate their needs which can be a costly expense. Others may choose to maintain separate households which can be financially straining if you are contributing to both households. 
- Loss of income – If you become a full-time caregiver, you may need to reduce your working hours or possibly take a leave of absence. This can result in a significant loss of income. 
- Retirement savings – The financial implications of supporting two separate generations can lead to a delay or reduction in contributions to your own retirement savings plan. 
- Debt accumulation – If by chance you have little or no savings to count on to cover immediate expenses, you may have to rely on using credit cards, loans, lines of credit, etc., leading to increased debt and interest payments. 

If you are part of the sandwich generation and have found yourself to be struggling with the challenges listed above, there are strategies to help mitigate the financial strain.

- Budget – When taking on any new financial obligation, having a budget to account for all expenses is essential. Track all caregiving and family-related expenses. Within your budget, ensure you are contributing to an emergency fund to help cover any unexpected one-time expenses you may be faced with. If the budget is strained, consider cutting back on non-essential expenses. 
- Debt management – Prioritize reducing your debt load. There are two methods to consider helping you pay down your debt, the snowball method, which consists of paying you smallest debt off first while making minimum payments on the others, and there is the debt avalanche method which consists of paying off the largest, or highest interest rate debt as fast as possible while making the minimum payments on the others.
- Optimize insurance coverage – Ensure you have adequate insurance coverage for your aging parents or relative, as well as your family. Ensuring you have proper coverage can help protect the savings you have worked hard to build by helping with the costs associated with healthcare. 
- Financial assistance & resources – Ensure you are taking advantage of any government programs that may help your situation. For information on provincial programs such as the Canada Housing Benefit, New Brunswick Low-Income Seniors Benefit, Prescription drug plan, and many more that may be applicable to your situation, visit http://www.socialsupportsnb.ca. In addition to provincial programs, the federal government offers programs to help provide financial support as well. The Canada Caregiver Benefit is non-refundable tax credit available to caregivers that provide the basic necessities of life such as shelter, food, clothing, etc. Information can be found at https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/canada-caregiver-amount.html If your caregiving responsibilities require you to take a leave of absence from your job, you may qualify for the EI Caregiving Benefits. You could receive 55% of your earnings, up to a maximum of $668/week. More information on this benefit can be found at https://www.canada.ca/en/services/benefits/ei/caregiving.html. 

By taking the time to understand the financial implications you may be faced with when taking on the caregiver role, you can better implement strategies to manage them and better navigate the challenges of being part of the sandwich generation while maintaining financial stability. 

If debt is causing preventing you from taking on the caregiver role, or adding extra stress to your situation, there are options to help you tackle your debt. If you are looking for advice, or a second opinion about your debt, it does not cost anything to talk about your options. Every financial situation is unique and viable options can differ from person to person. A conversation free of judgment is the first step to determine options for debt that make sense to you. For a free consultation, please call or text (506) 645-1814 or email jaime@tackledebt.ca; or visit www.tackledebt.ca.