Helping Your Elderly Parents Manage Their Money

Helping Your Elderly Parents Manage Their Money

As our parents age, there may become a time when managing their money becomes a difficult task for them. If you’re the designated helper when it comes to their money, here are ten tips on how you can help ensure they remain secure and comfortable.

#1 OPEN COMMUNICATION

Starting off with an open and honest conversation about their financial situation can help alleviate high emotions. Many aging people could feel like they’re losing control, or that something is being taken away from them. Help them understand that you want to support them with their finances and that it can still be a team effort.

#2 KEEP IT SIMPLE

Consider consolidating accounts where possible. This will make it easier to keep track of income, expenses, making fewer payments and reduce the risk of missing something.

#3 AUTOMATE

Setting up automatic bill payments or money transfers for regular expenses that come out monthly can help ensure payments are made on time, while reducing the burden for you and your parent(s).

#4 DON’T FORGET TO MONITOR ACCOUNTS

Just because you simplify and automate your money, it’s important to continue to regularly review statements and credit reports with your parents. Unfortunately, the older demographic is often targeted when it comes to scammers, so it’s important to identify any unusual or unauthorized activity as soon as you notice it.

#5 BUDGET TOGETHER

Work with your parents to create a realistic budget that accounts for their income, expenses, and savings. A budget helps manage day-to-day expenses and planning for future needs.

#6 SET UP POWER OF ATTORNEY

Consider setting up a power of attorney (POA) on their accounts to manage their financial affairs if they are unable to do so themselves. A POA can make managing their finances smoother, and financial decisions are made in their best interest.

#7 EXPLORE FINANCIAL ASSISTANCE PROGRAMS

Dive into research! There may be government and/or community programs that offer financial assistance to the elderly. If your parents would qualify, why not gain financial support to ease financial burdens?

#8 PROTECT AGAINST SCAMS

It’s more important than ever to educate your parents about common financial scams targeting the elderly. Encourage them to be cautious with unsolicited phone calls, emails, and door-to-door sales, and to always consult with you before making any financial decisions involving large sums of money.

#9 MANAGE INVESTMENTS WISLEY

Review your parent’s investment portfolio to ensure it aligns with their risk tolerance and financial goals. Consider shifting to more conservative investments to protect their savings from market volatility.

#10 SEEK ADVICE WHEN NEEDED

If you’re struggling to convince your parents they need help with their finances, or even if you’re not sure where to get started if you’ve already gained their support, you can always find a professional to help you navigate complex financial issues.

Bonus Tip: At CSE we have a Certified Financial Counselor on staff who can help provide valuable guidance on managing assets, estate planning, and long-term care options.

Helping your elderly parents manage their money can be a delicate subject to broach and a task that takes time and patience, but it’s crucial for their well-being and security. By following these ten tips, we hope it can ease your duty to maintain financial stability and peace of mind for your parents in their golden years. Remember, the goal is to ensure they feel comfortable and secure, so always approach these conversations with empathy and respect.