Are you part of the sandwich generation? Here are 5 ways to protect your own finances.

Each generation faces its own unique financial challenges. One particular generation – the « sandwich generation » – seems to be juggling everything: children, aging parents, the demands of the workplace … the list goes on.

The problem: This can significantly weaken their finances and make it more challenging to achieve their long-term financial goals. Sound familiar? Here’s what you need to know if you’re part of the sandwich generation.

The term « sandwich generation » refers to young to middle-aged adults who are raising their children while supporting their aging parents. This generation is made up mostly of Gen Xers, although more and more millennials are falling into this category as their parents age.

by Pew Research Centeralmost half of adults aged 40-59 belong to this growing group.

People of this generation are today’s caregivers. They juggle taking their kids to soccer practice between work and doctor appointments for their elderly parents. And the responsibilities aren’t just a monopolization of their time—a real financial burden is placed on members of this group.

Members of this generation are often caught between a rock and a hard place when it comes to their finances. They simultaneously care for aging parents and children, save for their children’s education and their own retirement, and in some cases foot the bill for a parent’s health care, memory care, or other day-to-day expenses.

According to the AARP report, caregivers spend an average of 26 percent of their personal income on care expenses. And one in three dips into their personal savings to cover expenses.

« Dual caregiving can seem like a delicious juggling act, as sandwich generation caregivers often put their family’s immediate needs ahead of their own well-being and future security, » said Matt Gromada, Chase Bank’s head of family banking. « This is especially true if they haven’t talked to their aging parents about finances while they’re well, which can lead to unclear obligations and surprise expenses later on. »

Navigating the challenges of being part of the sandwich generation can take a significant financial and emotional toll. However, it is very important to put the right safeguards in place to protect your finances.

The right documents and a clear picture of your family’s finances can help you create a budget and a financial plan that takes into account how your financial responsibilities will evolve over time.

This may include managing bills, investments or pensions, social security benefits or insurance plans.

« Taking forward planning when things are calm can make a world of difference, » Gromada said. « Finding and organizing financial and legal documents, such as a health care power of attorney or long-term care insurance, now can help prevent additional stress and confusion during a health crisis. »

2. Talk openly with parents and adult siblings

It’s also important to have honest conversations with your parents about what their expectations are for care and help with money management.

Open and honest communication with aging parents and adult siblings can help ensure that caregiving responsibilities are shared among your entire family. If you are unable to provide financial support to a parent, for example, but have time for caregiving responsibilities, discuss how siblings or even relatives can help.

« The most important thing is to set boundaries with your parents about how you will and won’t help them, » said Jay Zigmont, CFP and founder. Childless trust. « For example, my wife and I have a rule that no one lives with us. We are ready to help in other ways, but we know that living with parents doesn’t work. » She added that while you need to budget for your parents’ care, it’s important to understand that there is a limit: « A year in a skilled nursing facility costs an average of $125,000, which can quickly eat through your savings. »

Read more: Average savings by generation: How do boomers, Gen Xers, Millennials, and Gen Zs compare?

When it comes to savings, it’s important to look at it as a « put on the oxygen mask first » situation. This is especially important if you want to avoid placing a financial burden on your own children as they age.

So make sure you have a well-funded retirement plan before you commit to providing financial assistance to your children or parents. Remember, you can borrow money for college or adjust parental support, but it’s rarely possible to make up for years of lost pension payments.

In addition to making sure your retirement savings are in order, you should have emergency fund. When you’re the primary caregiver for aging parents and young children, life is bound to throw a few financial problems at you. So try to save at least three to six months of living expenses to cover unexpected expenses.

The right tax strategy can produce savings that significantly offset the cost of care. Examples of tax-advantaged accounts and write-offs that can reduce the net cost of support include:

• Maintenance FSAs if caring for a qualified parent or child

• Care loan for children and dependents if you pay for care so you can work

• Claiming a parent as a dependent if you provide more than half of their support (per IRS rules)

• 529 plans or tax-advantaged education accounts for children

Treatment costs don’t have to come solely from your pockets. Check to see if your workplace has resources such as education reimbursement programs, paid family leave, legal and financial planning assistance, free childcare or childcare assistance programs, and more.

Read more: 9 ways your employer can help you save money