If you’re between the ages of 35 and 60, you may be feeling a financial pinch from both your growing — or grown — children and your aging parents or in-laws.1 You may also find yourself juggling your work commitments and the expectations of family members for your time and support. As a member of what’s known as the “sandwich generation,” you’re not alone.
Children today leave home later than in previous generations and less permanently. Today, children tend to live at home longer — or move out and return over time, sometimes with their own children in tow. And parents tend to live longer, often spending 25 years or more in retirement. If you’re wondering how to keep yourself financially on track, the following strategies may help.
■ Pay yourself first. Instead of paying your bills and other expenses and save what’s leftover, automatically route a portion of your paycheck to your 401(k), Roth IRA or other retirement savings account — and encourage your working children to do the same. This ensures you’re regularly investing in your future financial security.
■ Talk openly about finances. Discuss the basic tenets of sound money management with your children to help them develop good financial habits at an early age. According to an Ameriprise Financial study, 70% of parents involve their children in family financial decisions to help instill values and principles,2 allowing them to see where they can contribute. It’s equally important to talk with your parents about their plan for meeting their future financial obligations.
■ Make sure financial and legal documents are up to date. You, your parents and your children must determine whether you’ll need a Durable Power of Attorney, a Healthcare Proxy, a Living Will and a Last Will and Testament. Also, review and update beneficiary designations on investments and insurance policies (they may outweigh what is stated in a will). Keep a list of your financial accounts and passwords — know where your parents and children keep theirs.
■ Discuss long-term care insurance. In-home health care costs or a lengthy nursing home stay can be very costly. If you or your parents don’t have long-term care insurance, it may be wise to look into it to see if it fits with your family’s goals and options.
■ Explore resources to help offset costs. If your children are attending college, research the scholarship opportunities or work-study programs that may be available to them. Also, find out whether your parents qualify for any federal, state or local benefits for their care.
■ Set limits. If you have the desire and financial resources to support adult family members, it’s important to balance your generosity with ensuring you have enough money to last through retirement — and support your family’s own financial independence. Be clear with your children and parents about how much financial support you are realistically able to provide.
Managing the responsibility that comes with being a member of the sandwich generation can be difficult. For help understanding how to plan for your future while caring for those who matter most to you, consult a reputable financial advisor. An advisor can help you create a financial strategy that makes sense for your unique situation.
MICHAEL W. K. YEE, CFP,® CFS,® CLTC, CRPC®
1585 Kapiolani Blvd., Ste. 1100, Honolulu, HI 96814
808-952-1240 | michael.w.yee@ampf.com
ameripriseadvisors.com/michael.w.yee
Michael W. K. Yee, CFP®, CFS®, CLTC®, CRPCTM, is a Private Wealth Advisor/Financial Advisor with Ameriprise Financial Services, LLC in Honolulu, Hawaii. He specializes in fee-based financial planning and asset management strategies and has been in practice for 42 years.
1Pew Research Center, “More than half of Americans in their 40s are “sandwiched” between an aging parent and their own children”. www.pewresearch.org/short-reads/2022/04/08/more-than-half-of-americans-in-their-40s-are-andwichedbetween-an-aging-parent-and-their-own-children 2Ameriprise Financial Parents & Finances Study, 2025. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial cannot guarantee future financial results. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. ©2026 Ameriprise Financial, Inc. All rights reserved.
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