Seven tips for living in a multigenerational household

1 Give yourself an adjustment period

 Any new living situation needs some grace for everyone to adjust and become comfortable. Be patient and take the time to consider each other’s perspective. And communicate regularly, especially with your spouse, to check on any concerns.

2 Communicate details ASAP

It’s important to speak with all adult family members and agree on specific responsibilities such as cooking, utility costs, and even babysitting. In some cases, grandparents may be willing to provide childcare to help working parents, potentially saving thousands of dollars each year in day care.¹ To help avoid misunderstandings and costly mix ups, consider putting your financial arrangements and ground rules in writing.  

3 Consider the extra costs

Housing, food, and transportation are the largest areas of spending for Americans, with housing accounting for almost one-third of all expenses.² With more people living in your home, these totals are likely to rise. It might be best to make a household budget for regular costs and ask everyone to stick to it. You should also consider creating a budget for your personal expenses, debt, and savings goals. Older residents should generally factor a rising cost of living into their retirement planning.

4 Understand potential insurance and tax issues

Living under one roof doesn’t just affect your monthly living expenses. You’ll likely also want to discuss your insurance needs and how taxes will be handled. Some key questions to consider include:

• Will you be listed on each other’s car insurance policies?
• Is a special homeowners or renter’s policy required?
• Who pays the property taxes if you own your home? 
• Who claims eligible home-related tax credits and deductions?

For help answering these questions, consider working with tax and insurance professionals. They can help you understand your options and determine the best approach for your family.

5 Plan ahead

Unexpected scenarios, such as the pandemic, are difficult to predict. But if possible, it’s suggested that you save a few months of expenses, especially if only a few members of the home are working. Consider making small automatic deductions from your paycheck toward an emergency savings account. Aside from finances, find backups for childcare or elder care. Creating a network and offering care in return can be a great way for everyone to get quick help in case of an emergency.

6 Establish boundaries

Expectations, norms, and communication can vary greatly among generations, even those from the same culture. Family members can accidentally offend or pry without realizing it. Try to establish firm but fair boundaries early on, and express mutual respect with all interactions. And be sure to set aside time for fun activities, such as hobbies, movie nights, or neighborhood walks, so everyone feels valued.  

7 Maximize your savings

Any money you save by living together can help you make progress on your shared and individual goals, including retirement. Consider putting a little extra toward each one every month. You’d be surprised at how even small amounts can add up over time. 

Making multigenerational living successful

For a growing number of families, living together as a larger group of parents, children, and grandparents is becoming more popular. Because of rising costs, some make the move to help save money on childcare or housing. Living in a multigenerational household, however, can have a financial impact, as well as an emotional effect on relationships. A bit of planning, communication, and consideration may go a long way in keeping your family—and your wallet—happy.

1 “Estimated Revenue for Child Day Care Services Climbed as Child Care Options Declined in 2021,” census.gov, 1/9/24. 2 “Consumer expenditures 2023,” U.S. Bureau of Labor Statistics, 9/25/24.