Should You Consider Multigenerational Living To Save Money?
Written by
Jennifer Taylor
Edited by
Levi Leidy
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Living expenses can add up fast. This leads many families to combine forces, putting members of different generations under one roof.
For some, this can be a rewarding experience, but it isn’t the right choice for everyone. Keep reading to learn how to decide if this money-saving opportunity could work for your family.
Creating a Mutually Beneficial Experience
Lucas Wennersten, chartered financial analyst (CFA), certified financial planner (CFP) (Canada), CFP (U.S.), owner and founder of 49th Parallel Wealth Management, knows firsthand about multigenerational living, as his mother currently lives with him. A retired principal and teacher, she helps Wennersten and his wife with their four young children — including with homeschooling.
He said this arrangement is working out great, as his mother loves to help, which takes some of the weight off him and his wife. Mutually beneficial, they’re also able to help his mother out, as she has some health issues.
“She has had three joint replacements since we moved in together,” he said. “We helped her with rehab, running her to doctors’ appointments and helping her with things around the house,” he said.
Living with him and his family has helped keep his mother’s spirits up, motivate her to stay healthy and work toward a swift recovery, he said.
“We knew going into this that mom was going to need more and more help with time,” he said. “We are happy to do that, because she really has helped us a lot.”
Things To Consider
“Living with parents helps everyone save money by paying off the mortgage, splitting utilities, reducing the number of vehicles needed, etc., but it can be a drain if one party doesn’t contribute,” he said. “Nobody should let anyone else use them.”
Combining households can also be a challenge, especially when members of two or three different generations are involved.
Logistically speaking, Wennersten’s home has what many would consider an ideal layout for multigenerational living. Knowing his mother would be moving in with them, he and his wife purchased a home with an attached in-law suite, allowing each to have their own living space.
“Fortunately, for me and my family, living together [has] brought an immense amount of joy and an appreciation for life,” he said.
Conversations To Have Before Making a Move
Growing up in a South Asian household, Gitanjali Kumar, CFP® at Worthique LLC, lived with both of her grandmothers after their spouses passed away.
“Their health no longer allowed them to live independently, so our family made space for them at home,” she said. “My parents had a large enough house to create separate areas, and the arrangement worked well because everyone respected one another’s boundaries.”
She said her grandmothers led their own independent routines, with her family providing them with meals, temple visits and medical care. What started as a practical decision became a deeply meaningful living situation for the whole family, she said.
“Multigenerational living can work well when space, respect and communication are prioritized,” Kumar said. “Families should have open discussions about privacy, finances and caregiving expectations before making the decision.”
Even if this arrangement offers significant money-saving opportunities, this isn’t the only thing that matters, she said.
“Emotional peace must come before financial savings,” she said. “It shouldn’t come at the cost of stress that can affect anyone’s health.”
If you decide multigenerational living isn’t best for your family, she said seniors might consider taking out a reverse mortgage, downsizing or renting part of their home to someone they trust. Additionally, they could consider relocating somewhere more affordable or — for those who can afford it — moving to a senior living community.
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