The phenomenon of the sandwich generation is still a concern, including in developing countries.
Basically, the sandwich generation is a phenomenon where a person finds themselves in the middle of caring for or providing support to two different generations simultaneously. Specifically, parents or grandparents who are older and their children who are younger
Although some people consider this a child’s devotion to his family, this phenomenon can present significant financial, physical, and emotional challenges.
This is a dual role that requires a careful balance between caring for and providing support to two different generations while looking after your own wellbeing.
So, to better understand what the sandwich generation is, how it first appeared, the types, the big impact on life for them, and breaking the chain, Check out the following review.
What is meant by the Sandwich Generation?
Basically, the sandwich generation refers to individuals who have a dual role in managing and planning finances because they have to support three generations at once, namely themselves, their parents, and their children.
They can be thought of as the contents of a sandwich, responsible for supporting both “layers of bread” or the generations above (parents) and below (children).
The term “sandwich generation” was first introduced by Dorothy A. Miller, a professor from the University of Kentucky, in 1981.
In a journal entitled The “Sandwich” Generation: Adult Children of the Aging, the term “sandwich generation” was originally used to describe women aged 30–40 who had to care for their children while meeting the needs of their parents, friends, and family. others.
It is important to note that the pressures of being in the sandwich generation are often felt more by women.
According to a report from the BBC, women tend to provide more intensive attention to their parents compared to men, while men more often provide more practical support, such as financial assistance.
The Beginning of the Sandwich Generation
Knowing the origins of the sandwich generation has several significant benefits for understanding and overcoming this phenomenon, one of which is related to historical awareness.
Understanding how and why the sandwich generation first emerged helps us see it in historical context. And finally, we can identify the factors that influence the development of the sandwich generation and why this phenomenon is becoming more common. The following is the beginning of the emergence of the sandwich generation, namely:
1. Consumer Lifestyle
A consumer lifestyle that tends to prioritize personal desires and current satisfaction can result in a lack of savings for the future.
When individuals do not allocate funds for savings or investments, they can be at risk of experiencing financial difficulties when entering retirement or needing greater family support.
2. Lack of Literacy
Lack of financial literacy can make individuals less prepared to manage their finances wisely. They may not have an adequate understanding of the importance of saving for the future or how to manage assets and investments. As a result, they may face unnecessary financial difficulties.
3. Lack of financial ability
Another factor that causes the sandwich generation is a lack of individual ability to manage finances. For example, they may have no savings for retirement or a lack of emergency savings to deal with emergencies that require large funds.
As a result, when the time comes to retire and no longer actively work, they may not have sufficient financial resources to support themselves and must rely on help from their children.
4. Children’s mindset is an investment asset
Some generations may have the view that having children is a financial investment in their future. As a result, providing expensive education or preparing financial assets for children becomes a necessity.
However, the risk was taken without thoroughly considering the long-term financial impact of this decision. Of course, it can cause a greater financial burden in the future.
3 Types of Sandwich Generation
It is important to understand that becoming familiar with the types of sandwich generation helps individuals have a deeper understanding of the complexity of this phenomenon.
It allows them to identify differences in challenges, responsibilities, and needs that may arise based on the type of generation they are living through. The following are the types of sandwich generation that you need to know, including:
1. The Traditional Sandwich Generation
The most common type is the Traditional Sandwich Generation, which consists of individuals between the ages of 40 and 50.
Those who fall into this category are responsible for caring for aging parents, spouses, and children who need financial, physical, and emotional support.
This phenomenon tends to be passed on to the next generation if parents have been trapped in the role of the sandwich generation. However, wise individuals can try to break the chain of this sandwich generation with the following steps:
Maximizing the Benefits of Subsidies, or PTKP
Facing many dependents requires wisdom in managing finances. One action that wise individuals can take is to use tax deductions obtained through PTKP, or non-taxable income, to save.
Prepare retirement funds.
Preparation for retirement funds can be started at an early age by saving or participating in a pension insurance program. Pension funds are very important to ensure financial well-being in old age so that it does not burden future generations.
Educate children about financial education.
Financial education is something that needs to be given at an early age. This starts by teaching children about the importance of saving, not just spending money for fun.
2. The club sandwich generation
Next, there is the Club Sandwich generation, which consists of individuals aged between 30 and 40 years. The burden that this generation must bear is much greater than that of the Traditional Sandwich Generation.
Individuals who fall into the Club Sandwich category have dependents involving minor children, parents, and even grandparents. If you already have grandchildren, the burden they have to carry will increase even more.
This generation is often experienced by individuals who come from large families. They feel squeezed by a growing number of dependents, so they have to meet the needs of a larger generation.
For individuals who want to avoid this situation, it is very important to start managing their finances wisely. For example, allocating income using the 40-30-20-10 formula can help.
Allocation of 40% for daily needs, 30% for installment payments, 20% for savings and online stock investment, and the remaining 10% for charity or emergency funds.
Apart from that, it is important to keep records of expenses and income so that it is easier to control finances.
This way, individuals can plan their expenses better, avoid continuous increases in expenses, and slowly set aside a portion for savings.
3. The open faced sandwich generation
The open-faced sandwich generation is a group of adults who do not have children. They just need to cope with the burden of caring for their parents or perhaps their siblings.
At first glance, the burden they have to carry seems lighter than that of the traditional and Club Sandwich generations. However, they still have the opportunity to prepare themselves for potentially more complex situations when they have children in the future.
The Big Effects of Life on the Sandwich Generation
In fact, understanding the profound impact life has had on the sandwich generation is important because it provides deeper insight into the physical, emotional, and financial impacts that this dual role can have. Here are some of the big effects of life for the sandwich generation, namely:
1. Burnout, or physical and mental exhaustion of yourself
The impact of ongoing stress and an increasing workload on the sandwich generation can lead to serious physical and mental fatigue.
If this condition is not addressed, the individual will become susceptible to various physical health problems, such as sleep problems, digestive problems, and ongoing fatigue.
Meanwhile, they are also at high risk of experiencing mental health problems such as panic attacks or severe depression. Therefore, it is very important to recognize the signs of burnout and seek the support and treatment necessary to maintain physical and mental health.
2. Higher stress levels
The sandwich generation often experiences higher levels of stress than other generations. Carrying responsibilities for family members across generations, such as parents and children, can result in prolonged stress. This stress can negatively impact their physical and mental health.
3. Easily worry
The sandwich generation also tends to feel worried if a situation occurs that is beyond their expectations. For example, if both children and parents experience health problems at the same time, this will result in an increased financial burden.
When their financial situation is tight, feelings of anxiety arise because they are faced with difficult choices that require quick decision-making.
4. Feelings of guilt or dissatisfaction
Feelings of guilt when experiencing failure or dissatisfaction when achieving an achievement are also felt by the sandwich generation.
They often feel like they have failed as the backbone of the family if they experience failure in their career or lose a source of income. Even if you achieve success in your career, feeling satisfied is still difficult to achieve.
This happens because they often struggle to overcome the fear of not having enough funds to meet the needs of multiple family members. As a result, they continue to work hard, which can increase the risk of stress and depression.
How do you break the chain of sandwich generations?
Knowing how to break the chain of the sandwich generation has a significant positive impact on overcoming the challenges that come with this role. One important reason is to reduce the financial burden.
By understanding how to break the chain of sandwich generations, individuals can take steps to reduce the financial burden that may arise from these dual roles. The following are ways to break the sandwich generation chain that you need to know, including:
1. Start managing finances wisely
By recording every expense and income carefully, you can manage your finances more effectively. This will help you identify and reduce unimportant expenses so you can focus more on saving or only allocate funds for truly essential needs.
2. Communicate with relatives
It is important to communicate openly with family members regarding their financial situation and individual responsibilities. Discuss expectations, boundaries, and how to manage family finances together. This can help understand and reduce shared financial burdens.
3. Increase sources of income through planned investments
Consider developing additional sources of income through wise investments. For example, you can invest in mutual funds, shares, property, or crypto investments if you have sufficient skills and knowledge. Well-planned investments can help increase your financial stability.
4. Reduce consumer lifestyle
Evaluate and cut non-essential expenses from your budget. Focus on essential needs and reduce spending on desires that may not be urgent. This will allow you to save more and allocate funds more wisely.
Conclusion
In conclusion, it is fundamentally important to truly understand what the sandwich generation is and its impact on everyday life. Regarding this, awareness of this role can help you deal with this condition better.
While the challenges of being a sandwich generation can be overwhelming, remember that you are not alone in this struggle. There is support and resources that can help you.
Try to play this role wisely, prioritize your physical and mental health, and seek support from family, friends, or even professionals if necessary. Remember that you have the ability to deal with this situation well.
Next, it is also important to think about your financial future. One wise step is to consider investing to secure your retirement and reduce financial stress in the future.
You can start by investing in various assets, including crypto investments, which can be an attractive option for long-term financial growth.
With the right understanding, support, and financial wisdom, you can break the chain of the sandwich generation and create a more stable and prosperous future.
