Top 6 questions about managing multigenerational budgets

Sharing a home with multiple generations can be a wonderful thing. A grandparent can read bedtime stories to the little ones. A teenager can teach the WiFi-challenged how to stream a movie. Everyone can share dinners, rides, responsibility, and space. But when the bills roll in, it’s clear that managing multigenerational budgets takes more than just good intentions.

If you’re considering or are currently in a multigenerational household, these top six questions about managing multigenerational budgets can shed light — and answers — to a complex (but common) family dynamic.

1. Can we split everything right down the middle?

You may be able to, but in the day-to-day workings of many households, an even split doesn’t always turn out to be fair. When one person works full-time, another’s on a fixed income, and someone else is in school or between jobs, “equal” doesn’t always feel equal.

Sometimes, it makes sense to start with what each person in the home can realistically manage, then build the family budget around that. In one family, a grandparent might cover the weekly grocery bill while a parent takes care of the mortgage. Another family might use a shared account and agree on a monthly total for expenses together. When everyone is involved in the decision, it usually feels more equitable.

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2. What if someone can’t contribute any money at all?

A contribution doesn't always have to be a portion of a paycheck. Everyone brings something different to a multigenerational household. In your family, a contribution might be picking up kids from school or activities, making dinner for the family a few days a week, or running some of the weekly errands. 

These things may not show up in the budget as “income,” but they’re still a big part of what keeps the household running. It all counts!

3. How can we keep track of all the things?

There are so many ways to track money coming in and going out in a multigenerational budget. The most important thing, though, is figuring out what process your family will actually stick to. Some ideas to try in your family:

• A budgeting app

• A spreadsheet shared with everyone

• A notepad that's kept in the kitchen 

• A whiteboard by the door that everyone uses

• A central envelope or box for receipts

If you want a little backup, tools like Greenlight's Family Shield let you see spending across all of your linked accounts and get activity alerts. This can add some extra visibility to your multigenerational budget.

4. What about unexpected expenses that pop up?

A flat tire, a surprise doctor bill … life happens, and so do unexpected expenses. A shared emergency fund can help create a financial buffer. You don’t all have to make equal contributions. If every adult in the home sets aside just a little bit regularly, it starts to add up. When extra expenses come up, you have some money to cover it. 

5. How do we handle personal spending?

When you’re pooling money for groceries, utilities, rent or mortgage, and all the other big stuff, everyone benefits from a little breathing room to spend on things that are important to them. Earmark a little discretionary money so teens can grab a snack after school, grandparents can go for lunch with friends, and parents can plan a date night.

You just need to agree early about what those personal allowances add up to. Then, no one feels like they have to explain every purchase, and the shared budget for essentials stays intact.

6. Do we really need to talk about money all the time?

You don’t have to turn money talks into a meeting with minutes, but yes, checking in regularly helps. All you need is a light conversation over coffee about what’s working well, and what might need to be adjusted.

We all know that bills can go up and job roles may change. You may need to adjust as you go. Touching base regularly helps make sure everyone is on the same page. 

Managing a multigenerational budget is really about staying connected and protecting the people who share your home. With tools like Family Shield built in, you can manage the budget – and protect it and your family in the process.

Protect your parents. Teach your kids. Secure the financial, digital, and personal safety of your senior loved ones* while raising money-savvy kids. Try Greenlight Family Shield now.†

*Loved ones refers to covered family members as defined in the policy i.e. supported adults for which you control or assist with their finances.