Boomers can feel quite a financial squeeze when their aging parents and their children need help. With the younger generation disproportionately hurt by the recession, many twentysomethings have moved back in with parents. According to 2010 Census Bureau data, 5.5 million Americans aged 25 to 34 live with their parents, up 38 percent from 2000. In November, the unemployment rate for people aged 20 to 24 was 14.8 percent.
Meanwhile many elderly Americans have had to move in with their children. In a 2009 survey by the National Alliance for Caregiving, 21 percent of caregivers for older adults said the economy had forced them to live together in the previous 12 months. An earlier study by the group found, on average, that families caring for older adults spend 10 percent of their income to do so.
How to Avoid:
Ask children to pay rent—at least enough to cover extra expenses. When caring for aging relatives, don't try to do it all yourself. Experts advise
finding ways to spread responsibilities among other friends and family members.