Transcript
Speaker: In today's bustling, ever-changing world, the way we choose to live and whom we choose to live with can vary greatly.
Speaker: But one arrangement, both ancient and making modern comeback, is the subject of our podcast series, Multigenerational Living.
Speaker: Now, if you're wondering, what exactly is multigenerational living?
Speaker: Let's break it down.
Speaker: At its core, multi-generation living refers to households where three or more generations reside together.
Speaker: Think grandparents, parents, kids, and sometimes even great-grandparents, all sharing the same space, meals, memories, and moments.
Speaker: In the coming episode, we'll be diving deep into the many facets of living arrangement.
Speaker: The history, the joys, the challenges, the economics, and so much more.
Speaker: We will talk to professionals in the field and people that have been experiencing this style of living firsthand and will leave no stone unturned in this fascinating subject.
Speaker: We will trace its rise understanding how it was once the norm, moved to the background, and now making notable return in many societies.
Speaker: So whether you live in such a setup or considering it, or maybe just curious about its dynamic, stick around.
Speaker: Together we'll explore the world of multi-generational homes, a testament to family ties, resilience, and the beauty of shared experience.
Speaker: In today's episode, episode number three, we'll talk about the 11 financial benefits of living in multi-generational homes.
Speaker: Many families are increasingly drawn to multi-generational home primarily because of financial challenges.
Speaker: Such challenges could arise from unforeseen circumstances like job loss or significant life changes such as divorce or the rising cost of living which possess significance and hurdles to
Speaker: making everyday survivals an uphill battle for many.
Speaker: Take, for instance, a young couple in California.
Speaker: The dream of purchasing a house in such location becomes increasingly distant as property prices soar.
Speaker: Simultaneously, they find that rents are escalating, trapping them in seemingly relentless cycle.
Speaker: For many, in such situations, it feels like being caught in swamp.
Speaker: The harder they struggle, the deeper they sink, making financial liberation seem like a distant fantasy.
Speaker: In prior sections, we delved into the history and the resurgence of multi-generational living.
Speaker: It's noteworthy to recognize that this lifestyle offers beacon of hope, particularly for young couples and those in the sandwich generation.
Speaker: Standard generation refers to individuals who find themselves responsible for both their children and aging parents.
Speaker: By merging two household budgets, these families can pull resources and transform financial challenges into opportunities.
Speaker: In doing so, they pave the way for the creation of harmonious multi-generational household, where both financial and emotional support becomes a collective effort.
Speaker: So let's jump into the financial benefit of multi-generation home and let's unpack these benefits and understand why more families are choosing to live in that kind of setup.
Speaker: So the first thing is shared housing costs.
Speaker: Perhaps the most immediate and very tangible benefit
Speaker: of multi-generational living is the dispersion of housing costs.
Speaker: With property prices and rents skyrocketing in many urban areas, the financial burden can be overwhelming for a single family unit.
Speaker: However, when parents, grandparents and even adult children pool their resources, this load becomes lighter.
Speaker: Mortgage payments, property taxes, utilities and maintenance costs are distributed
Speaker: making home ownership more affordable for everyone involved.
Speaker: The second thing is reduced child and elder care expenses.
Speaker: Child care and elder care expenses are significant, very significant for many families in the U.S. In the U.S. alone, the average cost of center-based daycare for infants and toddlers can be upward of $11,000 per year per child.
Speaker: On the other hand, assisted living facility and nursing home can cost an average of $5,000 almost to $12,000 per month.
Speaker: By living in a multi-generational setting, families often benefit from in-house care provided by family members.
Speaker: Grandparents can play a crucial role in child care, while younger generation can assist older family members with their needs effectively by passing hefty care-related fees.
Speaker: The third thing is streamlined transportation costs.
Speaker: In many multi-generation families, transportation resources such as car are shared.
Speaker: This means fewer vehicle to purchase, fewer vehicle to insure, and fewer vehicle to maintain.
Speaker: Furthermore, with more adults in the household, there is a higher likelihood that someone will be available to run errands or carpool, reducing the need for multiple trips and saving on fuel.
Speaker: Fourth part is the bulk purchasing and shared groceries.
Speaker: The pooling resource extends beyond just the bills.
Speaker: When shopping for a larger household, bulk purchasing becomes feasible, often leading to cost savings.
Speaker: Additionally, shared groceries means that wastage is minimized as leftovers ingredients are more likely to be used for someone else at the house.
Speaker: Meal planning and cooking for a larger group can also be more economical per person compared to cooking for smaller family units.
Speaker: Number five, utility bills and other house-related expenses like gas, water, electricity, and even property tax are getting higher by the year.
Speaker: In the past, looking at your mortgage bill was a significant part of your pay, but today, the accumulative expense of all the things that I mentioned above are significantly and significant high.
Speaker: Splitting them and sharing them really eased the burden.
Speaker: The next part is potential for increased savings and investments.
Speaker: With reduced individual expense, family members often find they have surplus income.
Speaker: This can be directed towards saving, investments, or paying off debts faster.
Speaker: Over time, this can lead to significant wealth accumulation.
Speaker: For instance, a family could decide to invest jointly in real estate or stocks, diversifying their portfolio and increasing their potential returns.
Speaker: Number seven, income diversity.
Speaker: A diverse range of earners in the home also means financial stability.
Speaker: If one family member faces unemployment or medical emergency, the other can help cover expenses, ensuring that the household remains financially secure.
Speaker: This mutual financial safety net is one of the key attractions of multi-generational living.
Speaker: The seventh part is reduced additional costs.
Speaker: So many costs that we don't immediately consider, such as internet subscription, streaming services, or even magazine subscription can be shared in multi-generational setup instead of three separate Netflix accounts or three separate New York Times accounts.
Speaker: For instance, one premium account could suffice for the entire household.
Speaker: One IP, one family shared cost.
Speaker: Number eight, educational benefits.
Speaker: For families that value education, pulling resource can mean the difference between attending a regular institution and prestigious one.
Speaker: Tuitions, especially for higher education, can be daunting.
Speaker: Multi-generation financial contribution can facilitate better educational opportunities without the heavy burden of student loan.
Speaker: Number 10, estate planning simplified.
Speaker: While it's topic many shy away from, estate planning is crucial.
Speaker: In a multi-generational living arrangement, assets like the family home can be seemingly passed down.
Speaker: This is not only ensured that property remains within the family, but can also offer significant tax benefit depending on the local laws.
Speaker: And lastly, the value of multi-generational home.
Speaker: This is a rare product in today's marketplace and estimated to be worth 20% more than the same size houses in the same exact neighborhood.
Speaker: And that is due to the uniqueness of the product.
Speaker: So let's conclude.
Speaker: While multi-generational living may not be the right choice for every family, the financial benefits of that are undeniable.
Speaker: By leveraging the power of collecting resources, families can attain a higher quality of life.
Speaker: achieve financial goals faster, and ensure security and stability for all the members.
Speaker: As property prices and living costs continue to escalate, it wouldn't be surprising to see more families up to this age-old living arrangement, merging tradition with financial prudence.
Speaker: So instead of looking at generational home as a burden, please understand the financial benefits.
Speaker: and consider it seriously.
Speaker: Hope you enjoyed this episode and looking forward to see you in the next one.
