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I was recently chatting with a colleague who belongs to the ‘sandwich generation’ (aged 35 to 54, providing for both their parents and children). Hers is a familiar story — juggling responsibilities towards her mother and daughter. Her own passions? They are on the backburner.

She said she often felt guilty about not doing enough in either of her roles. “I wish I had started planning earlier, both emotionally and financially,” she confided.

Per a recent study by Edelweiss Life, 60 percent of those polled said that no matter how much they save or invest, it’s never enough.

Here are some common financial mistakes you can avoid as you enter this critical life stage.

Avoiding discussions on moneyFamilies typically avoid discussions about money, which is a  big problem when it comes to financial planning. A healthy family conversation about money involves openly sharing available resources, understanding everyone’s aspirations, and jointly prioritising them. This helps create a realistic plan and prevents stress when financial demands arise. It is also a great tool to pass on a positive outlook on finances to your children.

Also read: It's a sandwiched generation! Look after your kids and parents at the same time

Letting emotions drive financial decisionsOnce you become the family’s decision-maker, emotions often take over — saying ‘no’ can feel uncomfortable, particularly when it comes to ageing parents. But this is where the first step — open, collective conversations — becomes crucial. When you have already discussed the family’s aspirations and priorities together, it becomes easier to differentiate between needs and wants.

Essential expenses like healthcare and education should be non-negotiable, while aspirational goals — like vacations, home upgrades, or festive spending — can be planned systematically. This approach reduces emotional decision-making and helps avoid unnecessary debt.

Neglecting retirement planningMany people postpone their retirement planning to their 50s, while prioritising their children and parents. But retirement planning should be non-negotiable. Without a solid retirement fund, you risk being dependent on your children in the future. Prioritising your retirement planning today will protect your independence and give the next generation the freedom to focus on their own goals.

Not having an emergency fundThe biggest mistake one can make is underestimating rising healthcare costs. It is critical that you and your parents have health insurance so that unforeseen expenses don’t drain your savings. Also, it is also makes sense to create a contingency fund that can meet emergency family expenses without interrupting your goal-based investments or taking on debt.

Accessing long-term investments for short-term wantsTapping into your long-term investments like mutual funds or life insurance for short-term desires — such as vacations, home upgrades, or celebrations — can derail your financial future. While immediate gratification feels rewarding, it compromises long-term security. Instead, build a separate fund for such discretionary spending to protect your core investments.

Also read: How senior citizens’ health insurance space is evolving in India

This generation deals with unique financial pressures and can be vulnerable to missteps. It is advisable to seek expert advice to ensure you are on track with your planning and can manage financial responsibilities with relative ease.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions. 

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