Father’s Day 2022: Gen S, or Sandwich generation, fathers have to play the dual responsibility of caring for elderly parents and simultaneously planning for their children’s future. Taking care of funds and goals of two generations, including one’s own, needs more meticulous financial planning.
However, studies have shown that when it comes to keeping finances in order, many of the GenS dads face challenges of a different kind, leading to stress. According to the 2019 Cigna Well-Being Survey, 89 per cent of India’s sandwich generation (aged between 35 years and 49 years) suffer from some level of stress with less than half of them feeling that they are doing well financially. While it’s true that shouldering major responsibilities, without faltering, often becomes a tough balancing act to pull off for this section of the population. So what are the financial tips for Dads from the sandwiched generation?
“Gen S Dads may feel overwhelmed by the pressure due to the multiple responsibilities they have – nurturing up kids, constructing a strong monetary root for them alongside looking after their elderly parents. Almost half of the midlife grown-ups are a part of the sandwich generation who are shouldering more responsibilities than just caring for their elderly parents and raising children,” Ankit Gera, Co-Founder of kid-focused startup Junio told financialexpress.com
For this Father’s Day, Gera shared three strategies for the Gen S dads that can help them in saving money wisely and meeting their financial goals:
Start with proper budgeting
The single source of income may force you to stick to tight budgets but you are going to reap great benefits in the future. A practical piece of advice is to comprehend the monthly expenses for your kids and parents. and set aside money for all your bill payments, grocery, school fees, healthcare needs, and some other important expenses, and plan to invest in long-term policies and insurances for your parents and kids.
Identify the income source
Gen S Dad must identify their active income sources and parents’ income sources. They can determine what pension, social security, or medicare perks their parents are entitled to. Gather the necessary documents to check if there’s any voluntary provident fund (VPF), public provident fund (PPF), National Pension Scheme (NPS), etc, and pen down the estimated income they would earn from it. They should also map their functional income resources and cumulative earnings from it. Club both the income sources to know if it’s enough or still there is a need to bring in more household income.
Gen S dads should focus on raising financially literate kids and help them in understanding the significance of money. You are the role model for your children and can show them how to inculcate healthy financial habits. Initiate an honest conversation with your children regarding finances and they will learn to differentiate between their needs and wants. Doing this can help the Gen S dads in planning their budgets and meeting the financial needs of their families efficiently.