Senior adult woman talking to her son.

Many millennials grew upwardly turning to mom and dad for a little cash infusion when funds were low, or they wanted to leave with their friends. But as this generation enters the workforce, many are finding themselves on the other side of the table.

"Many millennials are finding themselves in a 'sandwich' predicament," says Erik Davidson, deputy main investment officer at Wells Fargo Private Bank. "They not just have to prepare for the fiscal needs of their own children, but besides of their parents who are increasingly needing fiscal support."

Co-ordinate to Ameriprise, 34% of millennials have helped their parents pay for groceries considering they weren't able to, 27% have helped parents pay utility bills and xx% take helped with hire or mortgage payments.

Certified Public Auditor Ernest Almonte says the determination to lend money to parents is personal. "If your parents come to you lot, they obviously have a problem and you need to decide if you're willing to help them. You don't want to transfer their situation to create a bad situation for you."

Being confrontational won't solve whatever problems and emotions tin run loftier because family is involved. Experts recommend taking a breather when the money request starting time comes in to make sure you lot fully understand the situation before making a lending decision.

Before writing any checks, experts recommend asking these five questions:

Question No. 1: Can you afford to help your parents?

"Yous don't want to create long-term financial harm for yourself," says Scott Halliwell, certified financial planner at USAA. "Before you lot dedicate a lot of financial resources to your parents, think about your own state of affairs and whether there's another way to help without having to give money."

Evaluate what you can afford to give and why your parents demand the money, says San Diego-based certified public accountant Leonard Wright. "If they're coming to yous for nutrient, that's i thing, if they partied it upward, that'due south another. Peradventure that'southward a state of affairs where you don't help and talk about where they spent their coin."

You also need to consider what lending your parents money will hateful for your own financial future. "You should be very enlightened of the consequences of the decision you're making," says Suzanna de Baca, vice president of wealth strategies at Ameriprise Fiscal.

You besides want to brand sure the money isn't a temporary gear up to a bad situation. "No child should abandon their parent in a time of need, but sometimes, similar to when a child asks a parent for coin, a little bit of tough love is in order," says Halliwell."Sometimes it's okay to say that y'all understand your parents are in a difficult spot, only that y'all can't set it."

Question No. 2: How do your parents spend money?

Although the procedure can be awkward, experts recommend reviewing your parents' upkeep to understand their spending habits.

"If your parents are having problems coming together today'south goals, y'all've got to go through and appraise where they're spending money and where they can save," says Wright.

This tin likewise be an opportunity to share the lessons you've learned about post-obit a budget, likewise as saving for retirement and emergencies.

"Take your ain budget from a category standpoint, but not the actual numbers, and share that with your parents to help them understand how to saucepan needs, wants and savings," says Katherine Dean, managing manager of wealth planning, Wells Fargo Private Bank. A expert rule for budgets is to spend 50% on your income on needs, thirty% on wants and to save the remaining 20%.

Question No. iii: How much financial assistance can yous provide?

If you do desire to help them, figure out what you tin afford. Take a look at all your expenses and categorize your spending by needs versus wants. Help to your parents should go in the wants cavalcade until you know y'all can beget it.

"Being able to help is all about the child taking a look at their personal finances and determining if there's extra money," says Halliwell. "If in that location isn't extra money, then the child and parents demand to make sure there'southward a really compelling reason to do it."

Almonte adds that it doesn't help yous to destroy your credit and family unit situation to help someone else. "If it doesn't destroy your financial future, figure out what you can give up then yous can gift or loan money to your parents and how much coin can y'all free up from your monthly budget to help solve your parents' problem."

Question No. iv: Is it a loan or a gift?

Treat any loans to your parents like a business organization transaction with conditions, advises Wright. "A banker would never lend money without knowing the situation, and it's the same thing with mom and dad. If mom and dad can't share that data, you tin't aid them out."

To make the loan less emotional, sign a document with your parents outlining the payment terms and what will happen if they don't pay you dorsum. "Even though it's called a loan, it creates problems after the fact when you effort to collect money because it puts the son or daughter in a tough situation with the parents," says Almonte.

Experts concur that it'due south best to think of the loan as a gift and to adjust your own financial situation accordingly. "If they tin't pay you lot dorsum, reconcile how that will touch on your ability to pay your bills," de Baca says. "If you've a partner, consider how this would affect your human relationship— take their opinion into consideration and what would exist equitable if the other set of parents need assist."

Question No. 5: Are there other solutions for your parents?

Your financial assistance may not be the only fashion for your parents to solve their financial issues. "Ask your parents if they've done everything possible beyond coming to you," says Dean. "That can open up up a discussion about a job, the upkeep and whether they have other resources available."