The Sandwich Generation is described as a group of people that have children and parents that depend on them financially. And so they feel they are being squeezed from both directions. But by having the right conversation early, things can be clearer and easier.
In today’s episode of The His & Her Money Show, Cameron Huddleston, a financial journalist, and writer is the author of the new book: Mom And Dad, We Need To Talk.
Why She Wrote It
Due to her own personal experiences, Cameron realized that there isn’t a lot of material out there regarding this topic. She had to step in and help her mom with her finances while having her babies at the time. Her friends started asking her to help them and this made her write the book.
Why Have These Conversations
Cameron assures us that we are not alone, that these conversations are needed for better planning of the future. And her books explains that the conversations don’t have to be awkward.
These conversations with your parents need to happen when you are in your late twenties, early thirties. This might seems strange because our moms and dads are still healthy and can take care of themselves. But to have these conversations early will help everyone involved in the case a crisis arises later, like dementia or other types of illnesses.
How To Start
Start the conversation by using hypothetical terms. You can say, what if this or that happens? For example, what if you are involved in a car crash, heaven forbid. Would I be able to access your accounts to pay your bills from your bank account? Would I be able to make medical decisions for you?
If your parents are reluctant to talk, get a third party to help. This will open the door to the conversation. Also, ask your parents for advice regarding wills and life insurance, etc. This will ease the whole financial situation conversation.
Once the conversation door is opened, ask your parents regarding their will, their power of attorney, and advance care directive. The power of attorney is the person that can make financial decisions when the person cannot speak for him/herself.
This has to be decided on and the documents have to be signed when the person is in the right state of mind. If this isn’t done, the legal implications can cost a lot of money and cause a lot of added pressure to the entire family.
You could suggest to your parents to meet with an attorney to discuss these topics, as to what they will need, and then they can talk to you.
Talk To Your Siblings
Brother and sisters can pool together to get long term care insurance for their parents. The policy will be in the parent(s) name but the money can be debited from the children’s account. This is a great way to help out parents that cannot afford it.
Use “The Community”
There are facilities in your community that can provide help. Find out if there are adult day care services in your area. There might be volunteers in your church that look after seniors. Planning for the future will help you to navigate this phase in your and your parents’ life.
Get in touch with Cameron at https://cameronhuddleston.com
What You Will Learn
- How to have honest conversations with your parents regarding their finances
- Find out if your parents are financially prepared for retirement
- How to start the conversation
- A third party will help with the conversation
- How you can pay for life insurance for your parents
- What the children can do together to help their parents
Resources Mentioned
- Newman Longterm Care – Long Term Care Costs
- Mom and Dad, We Need to Talk: How to Have Essential Conversations with Your Parents About Their Finances – Cameron Huddleston
Thanks For Listening!
Thanks for tuning into us on The His & Her Money Show. If you’ve enjoyed this episode, please share it using the social media buttons at the bottom of the post.
Also, please leave an honest review for The His & Her Money Show on iTunes!Ratings and reviews are extremely helpful and greatly appreciated! Furthermore, they do matter in the rankings of the show, and we do read each and every one of them.
Today’s show is sponsored by Legal and General America. Legal & General America makes understanding and applying for life insurance easy. Also, agents are standing by to help you determine the best coverage to fit your family’s needs.
Visit HisandHerMoney.com/lgapodcast to get started on your journey toward financial wellness.
