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Why Multi-Generational Living Makes Financial Sense
March 9, 2023
We’re seeing a rise in large families with multiple generations living under one roof. In these times, it’s not a bad idea. Costs are one the rise, living alone can get expensive, and elder care can easily eat through someone’s bank accounts. Multi-generational living just makes sense.
People are realizing more and more that it makes financial sense to just live multi-generationally. However, that doesn’t mean that transition is easy; multi-generational living comes with a few challenges, but all it takes is some communication to work it out.
Today, we’ll share how and why it makes financial sense to live multi-generationally.
What is Causing The Rise in Multi-generational Living?
Why is it that we’re witnessing more and more families living multi-generationally? Let’s dissect the reasons…
The COVID Pandemic
COVID-19 made a significant change in the way our society works. One of those ways involved the job market. Sure, some jobs were upgraded to become remote but some were eliminated altogether.
Many people lost their source of income and have struggled to replace it. A study by Generations United lists that 30% of people moved in with their families because of underemployment or job loss. Doing so has at least helped them save on expenses.
Rising Inflation
The rise in inflation doesn’t pair well with many losing their jobs. Costs of essential items like groceries, fuel, and transportation have gone up quite a bit. Jobs going remote has helped with this a little bit but the costs can still be a struggle for many.
Increase in Life Expectancy
If you visit this graph on Macrotrends, you’ll see that the current life expectancy is roughly 79 years old. That’s a drastic increase from 60 years ago where the expectancy was around 68 years.
With many elders living longer as the years progress, that causes…
Rising Costs for Senior Living
Rising inflation, longer lifespans, and the pandemic have all contributed to a significant increase in senior care and living. In fact, a study from PayingForSeniorCare shows that two of the main concerns seniors have with inflation going up is no longer being able to afford medical care, or assisted or senior living.
With costs of senior living or care eclipsing well over $4,000 in many states, this is probably the top reason why it makes financial sense to live multi-generationally.
Benefits of Multi-generational living
We understand that making the switch to multi-generational living can be stressful. But it comes with plenty of benefits for the entire family.
One major benefit is for the parents of babies or toddlers. They have to go to work but they can’t just leave their kids at home by themselves. Instead of searching around doing background checks on potential babysitters, they’ll have their parents there to watch over their children. No more worrying if their children are in safe hands.
Another positive is that it’d be much easier to check on your aging parents. That means you can see how their health is progressing, notice any behavioral changes, and catch or react to unexpected moments more quickly.
If you already live in a large home, making the switch won’t be too hard either. You’d just have to move some things around to make a spare room. Of course, some structural changes will need to be made but it’s much more cost-friendly than extending the home.
Read: how to modify a floor plan for multi-generational living
Financial Pros of Multi-Generational Living
Now that you know how multi-generational living makes life more convenient, let’s talk about how it makes everyone’s finances less of a struggle.
Now that you know how multi-generational living makes life more convenient, let’s talk about how it makes everyone’s finances less of a struggle.
Now that you know how multi-generational living makes life more convenient, let’s talk about how it makes everyone’s finances less of a struggle.
It's Healthier to Live Together.
As mentioned earlier, multi-generational living means you can spot sudden changes in your aging parents much quicker. That means when a seemingly small problem arises, you can address it sooner than later.
You’d likely know about something concerning sooner than if they were placed in senior living or a nursing home.
Catching potential health concerns sooner potentially saves you thousands of dollars you might’ve spent if you waited until the conditions worsen.
Don't Pay for Senior Living Facilities
Senior care and senior living were already expenses long before the pandemic began. And now they’re noticeably higher after the fact.
By living multi-generationally, you’ll easily save multiple thousands of dollars a month. Additionally, your aging parents will help with the home’s mortgages and living expenses.
Those few extra hundreds of dollars per month can be put towards an emergency savings account, extra mortgage payments, or even a family vacation trip.
How can families afford to build an addition / in-law suite to their home?
Oftentimes, families aren’t sure how to financially navigate the process of expanding their home (or altering it) in order to make it possible for aging parents or other family members to move in.
But what they don’t take into account is that often, the money is already set aside by their aging parent in the form of retirement funds and other types of savings accounts.
But instead of all that money going to a senior living facility… it’s going to your home you can comfortably live in together.
Often, assets from the aging parent can either go to an assisted living facility, or can go toward building a home addition to accomodate them living with their family.
Preparing Your Family for Multi-Generational Living
Just because it makes financial sense to live multi-generationally doesn’t mean it’s an easy process. Upfront, you will have to put out some money on home projects to make the home more universally designed. This will make everyone in the home feel comfortable to move and do things without assistance.
Read: why every home needs to feature universal design in 2022
But before doing anything, start with having a talk about expectations. Make sure to cover topics such as:
- Expectations about living arrangements
- Establishing boundaries
- Contributing to house expenses
- Ways to make the home feel more secure
- Health concerns and what to do when they occur
Those topics may be difficult to have, but they’re necessary to establish a healthy living space. Don’t just talk about these topics only with your aging parents. Include the children as well; they should be aware of what to expect in the household moving forward.
Once you’ve had the tough conversations, you can discuss how your aging parents would like to have their new space designed. Whether you’re adding to the home or remodeling an extra room, make sure you focus on spaciousness, privacy, usefulness, and functionality.
Read: considerations before designing and building an in-law suite in Pickerington, Ohio
Prepare Your Home for Multi-generational Living
We understand uniting the family under one household may seem like a lot. But with prices continuing to rise, it just makes sense for your finances and your loved one’s health and safety to all live under one roof. It’s a very wise decision that will lead to happier lives as time passes.
If you’re ready to make your home multi-generational, contact the Heitmeyer team today. We’ll make a secure space for you and your loved ones to feel comfy and have their privacy.
Heitmeyer Building & Design is a Construction company with over 100 years of experience in commercial construction and residential construction located in Pickerington, Ohio.
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