Support loved ones without jeopardizing your financial goals

Sandwich generation. If you haven't heard this term before, it's a term to describe the generation of people that help care and support their aging parents while also supporting their own children. One common characteristic for folks in this group is that finances are often stretched thin as they're trying to financially support loved ones while still trying to meet their own financial goals.

All too often, this generation loses sight of their financial goals or places them second to making sure their children and parents are able to cover expenses. Many put off saving for retirement and some even fall into debt to make sure their loved ones are financially secure. They assume they have plenty of time to improve their financial situations. Unfortunately, what often happens is those in this situation will either end up working longer into their retirement years or they'll end up placing the same financial burden on their children as their parents placed on them.

But, there are ways that those in the sandwich generation can still financially provide for loved ones while still meeting their personal financial goals. The following are tips for those currently in this situation and those that may be in the future:

? Have open and honest conversations about finances - Having a candid conversation with your children and your parents can be difficult, but it will provide you with the information you need to be able to help you avoid future financial burdens. Ask probing questions about your loved ones budgets, account balances, debt amounts and monthly bills. By carefully examining all these areas you may learn that by cutting back on unnecessary expenses, your child may not need your help. Or, when you speak with a tax preparer, you may realize that your parents aren't taking full advantage of tax breaks and / or special assistance programs available to them.

? Explore other options to off-set costs - While parents like to help teens remain debt free from expenses such as a vehicle or school, keep in mind, these loans may come with lower interest rates than what may be available to you. Plus, debt isn't always a bad thing. By having lines of credit, your young adult can learn financial responsibility and by repaying loans on time or ahead of schedule, they can build their credit score helping them get lower interest rates on loans in the future. For those helping to support parents, make sure all areas of aid are explored. Even though they're benefitting from Medicare, they may be eligible for Medicaid. Depending on personal situations, certain non-profits may have grants or other money available to children that are taking care of their parents. Also, speak with your tax preparer to make sure you're getting as many tax breaks as possible.

? Decide how much you can afford to help - Once you have a good feel for how much help your loved ones truly need, then evaluate what you can afford for assistance. Examine your budget and look to see if you are still able to meet your financial goals such as paying off debt and, equally important, saving for retirement. Don't forget to look down the road and plan for rising costs as there's a good chance that expenses will only increase as time goes on. Also, make sure you feel good with how much is in your emergency fund. Remember to always evaluate all personal financial goals if loved ones end up needing more financial help in the future.

? Meet with a personal banker - Talking about personal finances with loved ones can be a big burden, which is why it's helpful to speak with a professional such as a personal banker. A personal banker can provide options for your family and loved ones, offer tips to dig out of debt and look for ways to help your money work smarter for you. In addition, a personal banker can refer you to other professionals as needed throughout your planning.

Proper planning is key to be able to financially support your loved ones while still meeting your personal financial goals. While these may be difficult conversations to have, the sooner you address your concerns and devise a plan, the better prepared you will be. Remember, it may be hard to put your financial goals first, but the last thing you want to happen is to place a future financial burden on your children. Talk with loved ones and a personal banker today so you can stop feeling as if you're sandwiched in the middle.