There are many reasons for multigenerational households. It can be cultural, economic situations, or if you have dependents. There can be a lot of benefits with a full house, but it also requires a lot more planning and has its own set of problems.
Create a new budget
With more people in a household, you will need to adjust your monthly budget accordingly. Figure out who will pay for what and create a budget based off that. The worst thing you can do is to go into a situation like this blindly and not have a solid plan. If your parents are dependent on you, then you should figure out their needed expenses. This will include doctor visits, medication, and any other special care they require. Being open with your parents about money is going to help tremendously with planning. It will help relieve stress and confusion about their money, making everyone feel confident about the overall finances of the household.
Create an agreement
Even though they are your family, it’s important to create an agreement for financial expectations. Creating a document laying out rules that are agreed upon will help avoid future conflicts. If there is ever a question about certain finances, it will be easy to pull up the document and look at what was originally discussed. Obviously, this isn’t a legal document, so changes can be made whenever a situation arises that warrants a revision.
Have a conversation about extra spending
Not all spending will be for necessities. Even your parents want to go out and have a good time, so creating a budget for that is important as well. Cutting expenses might not be needed for many families, so just developing a plan for fun activities will be a good way to create an environment where finances aren’t just a bummer to talk about.
Have a plan for the future!
Your month-to-month plan should be focused towards an even larger goal. Looking ahead will make sure that your long-term goals will be met. Don’t just focus on immediate needs because you might overlook needs that should have been accessed way earlier to plan for. Having the big picture in mind will alleviate stress for both parties involved.