I Live in a Multigenerational Household: How It Saves Me Money
Written by
Cynthia Measom
Edited by
Amen Oyiboke
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Mircea Dima, founder and CEO of AlgoCademy, said that he decided to live with his multigenerational family because it was becoming more and more challenging to manage two sets of financial demands he was experiencing — changing careers and paying off financial priorities — and it seemed like a reasonable solution to everyone involved.
“Our idea was to share space and responsibilities so that we could create a more supportive environment, emotionally as well as financially,” said Dima.
Here are ways to save money in a multigenerational household.
How Living With Other Generations Saves Money
Dima said that one of the most impactful ways living in a multigenerational household saves money is that the housing expenses can be shared. Rent or mortgage payments are often the most expensive cost a household shoulders.
But that’s not the only way.
“Costs for child care were also reduced, as grandparents and other elderly relatives were able to take care of the children to relieve us of the costs of daycare,” he said. “On top of that, we shared the responsibility for meals and groceries, thus drastically reducing our individual grocery bills.”
Dima explained that living in a larger household also makes it easier to buy groceries in bulk and save money. He also said that utilities are lower because everyone shares the same resources, splitting costs for things like electricity, water and internet instead of paying for separate accounts.
The Tradeoffs
Although living in a multigenerational household is valuable from a financial perspective, it comes with tradeoffs. One obvious issue, Dima said, is privacy. “Living with multiple generations can feel cramped at times, and sometimes when tension arises … there is not much personal space in which to retreat,” he explained.
He also pointed out that the emotional and social price of being around family constantly sometimes can be very draining.
“Plus, although we may save on direct costs, there can be indirect costs in terms of personal time as well as the need for extra planning to ensure that domestic tasks and responsibilities are shared equally,” he added.
The Bottom Line
Dima said he would recommend multigenerational living to people who want to save on costs. He pointed out that the economic advantage of multigenerational living — with respect to housing and childcare — is substantial.
However, he explained that it’s important to establish boundaries and expectations from the beginning to make social and emotional issues less likely.
“If there’s an understanding and communication between the different generations, multigenerational living can be an efficient and fulfilling budgeting choice,” he said. “Plus, value beyond money and finances goes by the name of added family support and longer relationships.”
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