July is Sandwich Generation Month. This term was coined to describe those caring for their own children as well as their parents. The Sandwich Generation is primarily made up of folks between the ages of 40 – 59.
Caring for your parents and children simultaneously can create a serious financial strain in many households. Indiana families who find themselves in this situation may be forced to make cutbacks in many areas. Even when aging parents tried hard to prepare for retirement, a serious illness or chronic health condition can result in care expenses that exceed their savings.
Adult children providing care for their parents can expect to pay several thousand dollars per year. Expenses like medication, transportation, and groceries can add up quickly. These costs may prevent you from adequately saving for your own retirement or finishing your children’s college education if you are not careful.
The best way to mitigate the financial stress caregiving creates is to plan ahead. Caring for your children and parents will likely require a strict budget. Meeting with a financial planner can help put you on the right track.
If your adult children have moved back in with you, consider charging them rent. Most parents don’t relish this idea, but financial boundaries are essential. You are all trying to get through this together.
Take Advantage of Tax Breaks
Speaking with a Certified Public Accountant can also help. Remember these costs add up before you know it. Knowing the ins and outs of the relevant tax code will serve you well.
If you’re paying for a significant portion of your mom or dad’s care, you may be able to claim to them as a dependent. That might allow you to claim them as a dependent on your income taxes or open a flexible savings account for their expenses through your employer-paid health insurance. Renovating your home for accessibility can also be tax deductible.
Five Star Value
If you’re living in the Hoosier state and thinking about assisted living options for your parents, come see what Five Star Senior Living has to offer. We have 16 communities in Indiana to help older adults stay close to their loved ones.
At Five Star Senior Living communities in Indiana, we know the importance of value to our residents and their families. Our fee-for-service model allows you to for only the care and services they need.