As a consequence of an aging population, more working Americans are finding themselves faced with saving for retirement while sandwiched between financial obligations to children, parents and older relatives. As CFOs of their households, women are increasingly responsible for juggling the competing financial needs of their families.

Financial Needs of Parents

Retirement savings have taken a significant hit during the recession and aren’t bouncing back quickly. Add to that declining home values and increasing healthcare costs, and the result is that many of our parents and other relatives may need financial help.

If you believe your parents or other relatives may need assistance, have a frank conversation with them to determine:

1. Their current assets and income.

2. Their current spending habits (i.e., rent or mortgage payments, fees incurred when accessing retirement accounts, etc.).

3. The percentage of their assets that are liquid.

4. How they pay for their medical and care giving costs (Medicare, long-term care insurance, etc.).

5. Whether they have a surplus or a shortfall when it comes to their cash flow from retirement accounts, Social Security, pensions, investment properties and other investments.

To some extent, our finances are tied to feelings of independence, and our parents and relatives may be defensive when it comes to speaking about money. Raising the topic can seem difficult, but it doesn’t have to be. To start the conversation, consider sharing an anecdote about a person you know in common, a news article, or how your own retirement accounts have been impacted. Let them know that you want to make sure they are taken care of and want to understand any concerns they may have. Once you have this information, you should be able to assess whether you need to supplement your parents or relative’s income and plan how to do so.

Financing the Education of Children

With the cost of higher education continuously rising, paying for school is a top concern for many in the sandwich generation.  Luckily, there are a number of options when it comes to saving for college, including scholarships and financial aid packages. Many websites offer access to applications and a breakdown of what is covered in various aid packages, such as:

In addition there are a number of education savings plans that you many want to consider. Speak to your financial professional to learn about these options and the implications they may have on your other financial goals.

In these financial times, it’s important to teach your children the importance of saving and involve them in planning for their educational expenses. Older children often receive money from jobs, special occasions, or an allowance. Talk to your child about putting aside a portion of the money for their education. Being an active participant will help them learn the principles of savings that they can carry throughout their lives.

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Retirement Planning for Yourself

Despite the distractions of the current economic environment, don’t lose sight of your financial future. While financial challenges may crop up and tempt you to free up necessary cash by lowering your retirement contributions or stopping them completely, doing so may be a costly mistake.

Here are a few things may want to talk to your financial advisor about to help you balance the unexpected with your retirement plan.

1. How to maintain an emergency account?

It’s recommended that we all put aside three to six months’ worth of living expenses to cover emergencies. An emergency account can help you in case of job loss, and can also help you pay for unexpected household needs or short-term immediate needs of family members.

2. How to plan your long-term care strategy?

Healthy, active, and independent—these are adjectives you might use to describe yourself and your family members. But someday you may need to depend on someone else for care, or someone may unexpectedly need to depend on you.

Medicare may offer limited coverage in such cases, but it may make sense to have long-term care insurance, which covers costs typically not paid by health care or Medicare, such as nursing home care. Speak with your financial professional and an insurance agent to see how long-term care insurance may fit in your overall retirement plan.

3. What is your life and disability insurance coverage?

Speak to your agent about regularly reviewing your insurance coverage based on your changing needs. Your life and disability coverage generally should replace enough of your income so that your family’s current and future needs are met—including everyday living expenses, short-term and long-term debts, education for your children, and retirement income for your spouse.

4. How to view your total financial picture?

Knowing and documenting your day to day expenses and how much you save may help you see where you can draw money from in an emergency.

By speaking with your financial professional, you’ll hopefully be better positioned to balance the needs of all the generations that make up your family.