Every generation is proud, and maybe not so proud, of certain defining characteristics/moments of its age group. I am a proud Gen Xer—coming in right at the tail end of the period. While there’s no agreed-upon definitive time range for Gen Xers, it’s widely suggested that anyone born from the mid-1960s up to 1980 is considered Gen X. Of course, there’s some wiggle room on either end. Generation X is what I like to refer to right now as the Sandwich Generation. Sandwiched between millennials and boomers and also sandwiched between caring for the young and the older, Gen Xers have some unique challenges.
With this blog, I will explore those challenges and perhaps take a quick nostalgic trip down memory lane. So get your 56k modem dialed up, and let’s begin.
What Is Gen X Known For?
Before discussing the challenges that Gen Xers face today, I must provide some context for what Generation X grew up with. When I think about my generation, here are the core elements/conditions that helped define who we are:
- Entertainment Options
I remember when cable TV came out without the fancy on-screen guides, and it was still the most exciting thing on earth. If you “had cable,” you were the cool kid on the block. Also, without the on-screen guides, We had to look up shows with the TV guide and/or endlessly flip channels.
My family was introduced to VHS in the mid-to-late 80s. We would go to Blockbuster and hope the new release movie will be available. My family owned just a few movies, and I must have watched Indiana Jones and Top Gun 100+ times. Even accounting for inflation, the cost of a VHS movie was astronomical back then, hence the video rental business. So you watched whatever you had endlessly because there wouldn’t be many options!
- From Analog to Digital
Gen Xers were the last generation to grow up without a computer on instant access. Sure, there may have been a family computer in the home in the late 80s or early 90s, but it was not a common household appliance for young people to spend hours on. Heck, email didn’t come about until 1993, and unless you were an MIT professor, you most likely weren’t using it back then. I still remember people drafting letters on electric typewriters!
Yes, Gen Xers expired the full transition from analog to digital. From VHS tapes to DVDs, cassette tapes to CD players, and touch-tone phones to 1G mobile carphones, my generation experienced the beginning of the digital revolution.
- The “Latchkey” Kids
What may be the complete opposite of how parenting functions today, Gen Xers were the first generation where both parents went to work full-time, so there was an expectation for kids to be self-sufficient, get themselves home, do homework, warm up dinner, take care of younger siblings, etc. The term “helicopter parenting” did not exist in any way, shape, or form for Gen Xers.
- Economic Bubbles
For Gen Xers, three monumental economic happenings helped shape our relationship with the stock market and provided us with first-hand experiences of economic trials and difficulties. These include the stock market crash of the late 1980s (not quite on my radar as a young Gen Xer), which had fallout until the Clinton administration; the dot-com bubble burst of the late 1990s and early 2000s; the Y2K scare when the world was nervous about what would happen to banks when the clocks turned over, and the 2008 housing bubble/economic collapse.
Where Is Gen X Today?
As I mentioned, Gen Xers are often called the sandwich generation today. We simultaneously care for aging parents and children not quite in adulthood. Gen Xers are tasked with caring for one generation in the late phases of life while ensuring the other is suitably ready to leave the nest and make it on their own; it’s not an easy task by any means.
As a family financial planner and proud Gen Xer, I’m familiar with the daily challenges of the sandwich generation. My clients and I approach the same milestones at the same time. The biggest concerns I hear and also face myself are the following:
- Eldercare Costs
Gen Xers are shouldering the high costs of medical care, long-term care, and assisted living facilities. Eldercare is extremely expensive. An assisted living, retirement, or nursing home can easily cost between 5-15k per month, depending on the level of care needed. It’s no wonder that Gen Xers are often torn on whether it’s best to take care of aging parents themselves instead of needing to sell off their inheritance to get them into eldercare.
- Higher Education Costs
It’s no secret that tuition has risen exponentially since Gen X was in college. The average private institution costs around 55k annually, and in-state tuition is around 26k. Gen X parents strive to find the best college savings accounts and strategies to meet their kids’ needs while not neglecting their own.
- Meeting Retirement Goals
Last but not least, Gen Xers must balance the needs of their parents and children with their own retirement goals. Compared to previous generations, Gen Xers cannot rely on robust pensions, which fewer and fewer companies offer, so planning for retirement is not a set-it-and-forget-it process overseen by an employer.
Hope Is Not Lost for Gen Xers
Gen X indeed has a lot on its plate right now, but hope is not lost. You don’t need to choose between caring for your kids, parents, or yourself. Don’t skip the memories; time with our loved ones is our most precious asset. Successful legacy planning can be achieved if there is a core plan with adaptable strategies in place.
A common mistake for Gen Xers is they attempt to be so self-sufficient that they’re reluctant to accept help. They’ll spend hundreds of hours on DIY financial planning, and the problem with trying to do everything yourself is that while you may be ok, you’re almost certainly not optimized.
The sandwich generation can become myopic and over-correct in favor of everyone but themselves, leading to a delayed retirement and sacrificing their own health and well-being. It doesn’t have to be this way.
If you’re from Gen X and want to discuss your favorite Simpsons episodes, debate who was better- Pearl Jam or Nirvana, or how to be best optimized to care for yourself and those you love, please book a call. My door is always open.
