Baby Boomers may be the most unlucky group when it comes to holding on to our money.  We’re often called the “sandwich generation”.  A combination of waiting later to have kids and longer lifespans have pinned up between kids who still need help and elderly parents who’ve outlived their savings.  The economy hasn’t helped, either.  Adult kids who’ve been self-supporting for years are falling back into the nest as they lose jobs, homes, and unemployment benefits.

So, instead of retiring, many of us will continue to work well past 65.  We’ll continue shelling out money and taking care of these folks instead of lying on a beach somewhere or traveling the country in an RV — or postponing purchase of the boat I’ve been wanting to move onto for years.

Knowing I’ve welcomed back 2 adult children after years on their own, while still housing 1 who never left, folks ask me how it works.  I’m not saying this is the best way to organize things, but it’s my way.

Here’s the situation.  My son lost his job about a year and a half ago and came to live with me a little over a year ago.  He’s working now, but recently cut down to part-time to go back to school — for video gaming.  So, I think I’m stuck with him for a while.

My daughter had been working part-time and going to school for nursing in Cincinnati.  Declines in the value of her 529 (tax-free savings for college) meant she had to come home to save on expenses.

Their father (sperm donor, would be more accurate) says they’re adults and has washed his hands of them — although to be fair he never really had much to do with them and rarely paid child support.

Here’s how we manage on 1 income:

1. Everybody does something.  My son mows and feeds the animals.  My daughter helps with the cooking and shopping.  Everyone helps with dishes and has assigned tasks on clean-up day.
2. Everyone pays personal expenses — movies, shampoo, restaurants, gas, whatever.
3. We don’t eat expensive items and meals prep time is limited so no elaborate meals.  I try to cook and freeze so there’s something on days when things get out of control.
4. 1 day a week is leftover day and lunches are often leftovers or sandwiches.
5. If there’s an opportunity for a free meal, we take it.
6. Clothes that need dry cleaning stay on the hangers.  Stained or ripped clothing gets fixed, not discarded.
7. Goodwill has become one of our favorite shopping trips.
8. Everyone chips in a little by buying things needed in the house when they can.
9. Trips are combined and folks share rides rather than taking their own cars.
10. The new healthcare law means I can still cover my daughter, even though she’s not in school full-time.

While baby boomers struggle to provide for these loved ones, the struggle extends to other aspects of the economy.  As we’ve cut back, businesses are feeling the pinch — more unfilled apartments, lower grocery bills, …  All these things put more pressure on the economy, sending more kids back home with their folks or depleting the savings of seniors driving them to live with their baby boomer kids.  And a downward cycle begins that’s hard to reverse.