The term sandwich generation has been hotly discussed nowadays. This does not mean that the term has a good meaning, but instead it often brings challenges to those who experience it. That is why the chain of sandwich generation must be broken, one way to do it is by investing in the right type of Bonds.
However, what exactly is the sandwich generation? Check out the explanation below along with the causes and how to break the chain.
Definition of the Sandwich Generation
The sandwich generation is a term for an adult who has to support three generations at once. The three generations are parents, themselves, and their children.
Although it seems that the sandwich generation has only been hotly discussed recently, this term was actually introduced by Dorothy A. Miller, a professor from the United States, since 1981.
Until now, the sandwich generation remains a difficult issue for adults, especially for workers.
This is because they are often required to put others before themselves when it comes to finances. This issue can often make them stressed and unable to enjoy life properly.
Causes of the Sandwich Generation
There are various things that cause the sandwich generation problem in the current society. Here are some of them:
- Parents Rely on Children
There is a belief in society that children must repay their parents. This is actually common, but it will have bad consequences if parents use this belief to rely on their children.
The result of relying too much on children in question is that parents leave their old age finances to their children, even considering children as an investment. Thus, they do not set up funds for retirement.
- Parental Failure in Finance
Failure of parents in finances can also lead to sandwich generation. This means that parents fail to manage finances so they do not have a retirement fund.
Thus, parents will rely on their children when they reach retirement. If this happens, then the child will become a sandwich generation.
- Parents were a Sandwich Generation
If in the past parents were a sandwich generation, then they have the potential to pass this culture on to their children. Their finances had dried out after supporting their parents previously.
Besides, being a sandwich generation can also make parents think that this culture is normal. Especially if they think that children must return the favor by being responsible for their parents' finances in old age.
- High Lifestyle
The high lifestyle can compromise finances in vain. Thus, parents cannot have a retirement fund to live in old age, so they have to rely on their children.
Not only that, even if parents have a retirement fund, the funds might not be enough to fulfill their high lifestyle so that they also rely on their children in financial matters.
- Lack of Awareness of Other Family Members
The sandwich generation doesn't only support their parents, but also their non-biological siblings. This can be caused by a lack of awareness of family members so that they rely on only one person.
For example, there are family members who prefer to rely on others rather than have to work hard. In addition, there are also family members who often borrow some money without returning them.
How to Break the Chain of Sandwich Generations
You already know what leads to the sandwich generation. Of course you don't want this to happen to your child. Therefore, here's how to break the sandwich generation chain so that it stops at you.
- Increase Revenue
If you are currently experiencing difficulties in becoming a sandwich generation due to a lack of available funds, then you can increase your income. Large income also affects the retirement fund.
There are various ways to increase your income that you can try, such as taking a promotion test, moving to a workplace that has a higher salary, or adding a side job.
- Manage Finances
Huge income will be wasted if you are unable to manage it properly. Therefore, make financial plans and records so you can monitor your finances properly.
Apart from that, you can also set financial priorities so that you don't experience any difficulties. For example, prioritize important things such as daily needs and retirement funds, then other needs such as recreation.
- Setting Boundaries
You need to set limits, especially for family members who are still in their productive age. You need to put your personal finances first, especially if they can still work on their own.
Besides that, communicate with the people you care about like parents regarding the limits of your financial capabilities. That way they can understand your financial condition and not be too burdensome.
- Set Lifestyle
The saying goes that it's not the cost of living that is expensive, but the lifestyle. Therefore, you can start managing your lifestyle so you don't overdo it and spend money in vain.
It's okay to spend your money, but make sure other needs such as daily needs and retirement funds are met.
- Set up a Pension Fund
Setting up a retirement fund is one of the main factors in breaking the sandwich generation chain. By having sufficient retirement funds, you don't have to burden your children later in old age.
Therefore, prepare a retirement fund from now on. You can follow financial formulas available on the internet or consult a professional such as a financial advisor. Do it consistently to gain maximum results.
- Invest
Investing is one way to break the sandwich generation. This is because investment can provide passive income that is useful for your old age.
There are various types of investments that you can choose from. One such investment is Bonds. Choose the right type of Bond to suit to your aspirations. You can seek advice from a financial advisor to choose one.
Invest in Types of Bonds with DBS Treasures
You can rely on DBS Treasures priority banking as a partner to invest in Bonds to break the chain of sandwich generation. You don't need to worry because the Bonds issuers at DBS Treasures provide regular income in the form of coupons which are paid regularly during the investment period. The coupon rate is competitive above the average Fixed Deposit interest.
In addition, some types of Bonds can be sold at any time before maturity and gain potential profits from rising Bond prices. You won’t be charged additional fees. Through the digibank by DBS Application, you can sell or buy various Bond products.
Therefore, invest in the right type of bonds confidently now with DBS Treasures to break the sandwich generation chain. You can find further information by clicking here.
