Sandwich Generation – Maybe you are already familiar with the term sandwich generation. Generation sandwich or sandwich generation lately it has become a hot topic that is often spoken by financial experts, especially when discussing the finances of the millennial generation.
What is it? sandwich generation that? What are the types and how do you break the chain? Whiz has summarized the answer for you, here.
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What is Sandwich Generation?
Dorothy A. Miller, Professor and director of practicum at the University of Kentucky, Lexington, United States, first coined the term sandwich generation in 1981. According to him sandwich generation is a group of individuals who are responsible for the lives of their parents, themselves and their children.
Like other sandwich, The top of the bread is likened to a parent who has no income and lives on the expense of their child. The lower part of the bread is described as children who must be raised properly.
The top bun and the bottom bun flank the filling (meat, vegetables, and sauce) which is likened to ourselves who have to support both of them. Therefore, generation sandwich can be likened to people who are "pinched" financially to support their husband/wife and children, as well as their parents.
Three Types Sandwich Generation
Sandwich generation divided into three age categories. Following the types based on seniorliving.org.
1. The Traditional Sandwich Generation
The first is the type of age group 40 to 50 years. This type covers the needs of children who are not financially independent and supports elderly parents who are no longer working productively.
2. The Club Sandwich Generation
Contains the type of age group 50 to 60 years. This type bears the lives of parents, children who should have grown up, and their grandchildren.
The age group of 30 to 40 years can also fall into this type, if they bear the burden of their parents, children, and grandparents.
3. The Open Faced Sandwich Generation
This type consists of people or individuals who work actively to care for the elderly, such as nurses in nursing homes or people who take care of the elderly at home.
How to Break the Generation Chain Sandwich
Sandwich generation or generation sandwich experienced by most people in Indonesia because it has become a tradition for children to support their families and parents. Especially if the parents live with their children who are married and do not have old-age savings.
However, if left unchecked, the generation sandwich This will be difficult to achieve financial freedom itself, you know. Therefore, it is time, here, we break the generation chain sandwich and changing public awareness to be more financially 'literate'. Let's see how the following.
1. Manage Finances Well
The main thing in breaking the generation chain sandwich is to manage finances well. How to? Start by recording your financial inflows and outflows. Make posts for needs, debts, savings, emergency funds and others.
By managing your finances well, you can continue to monitor your finances and avoid things you don't want. To help manage your finances, you can use the Whiz Financial Application, you know!
2. Setting up a Pension Fund
Setting up a retirement fund can break the chain sandwich generation because if you already have funds for your life in old age, you will automatically not depend on your children later.
Most young people are trapped by generations sandwich because his parents did not prepare a pension fund. Therefore, while young and have energy, work and prepare a retirement fund as early as possible.
3. Have Health and Life Insurance
Insurance is very important to have because it will really help financially when things go wrong.
Everyone should at least have health insurance. You must be familiar with the term "Health is expensive," This term arises because the cost to go for treatment is indeed expensive, especially when illness is unpredictable, so it can mess up your finances if you are not prepared as early as possible.
With health insurance, you will get health insurance starting from hospitalization, outpatient treatment, childbirth, and others which will certainly help your finances a lot. In addition, making life insurance is also necessary because no one knows about human age. With life insurance, you can be calmer and feel secure.
4. Prepare Education Fund
To break the chain of generations sandwich, parents must prepare education funds for the future of their children. By having a plan for children's education costs, it will ease the burden on parents in the future.
Try to take into account the child's education in detail, from elementary school to higher levels, such as college. Think about the needs of your child's school and where the child goes to school that is in accordance with the family's financial capacity, such as pocket money, tuition fees, to unexpected costs such as boarding and transportation.
5. Teach Children Financial Education as Early as Possible
Financial literacy should be practiced by everyone in all walks of life and all ages. Providing financial education to children and teaching children to be financially independent will greatly help in breaking the chain sandwich generation.
Start teaching children to save, distinguish between needs and wants, and not to follow a consumptive lifestyle. That way, children will understand that managing finances is very necessary for their future.
To help teach children about finance, you can use the Whiz Finance Application which has interesting features for parents and children.
Also Read: The way to manage money and grow it: a success!
That's the explanation about sandwich generation. It is time for parents to change their thinking that children must bear the cost of living for parents in the future. Start by having an awareness of the importance of financial education and provide financial education to children as early as possible.
The Whiz Finance application has various interesting features that can help you and your family manage your finances. Try it now, come on!
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