As parents age, it’s easy to notice the big concerns they have. They may not be able to mow the grass or keep the house tidy. Sometimes the problems they have are less obvious. For example, it is common for seniors to struggle because they don’t know how to handle their finances. At the same time, this type of conversation can be difficult to have. Many feel embarrassed. What can you do to help your aging parents with their finances?
Have an Open Conversation
Start the process by having an open conversation about their needs. Do this early on, even when your parents are healthy and younger, when possible. Ask them about their financial plans and current expenses. It may even be wise to talk to them about their plans for paying for their needs into their retirement years. Talk about:
- Paying for daily needs during retirement
- If there are funds put away to cover emergency medical expenses
- How they plan to pay for long-term care if they need it
- Any significant debts they have, such as a mortgage loan
- Where their accounts are
Be Sure Someone Can Manage Their Accounts
Over time, aging parents may struggle to handle their finances. Writing checks, balancing a budget, and handling financial expectations may be difficult. If a loved one were to develop dementia, that makes it even more important that someone else has a way of accessing their funds.
When possible, ask your parents to add you to their accounts. Request that they share information with you about the banks they use and how they wish their finances to be managed. Even if they are completely able to make their own decisions, it helps for there to be someone else who can get help when there is a need.
Be Added as a Beneficiary
When it comes to life insurance policies, ensure your parents’ accounts, if still in place, have you or someone they wish listed as a beneficiary. Be sure they have thought about and planned for their assets. Who do they wish to inherit their property? Who do they want to act on their behalf if they cannot do so on their own?
In some situations, it is important for adult children to discuss changes in beneficiaries. For example, if your parents divorced, did they change their will to reflect this? Do they have a will in place that provides proper representation for their needs and goals? If not, now may be a good time to have that conversation openly.
Why Does This Matter Now?
Don’t put off having discussions about your parent’s financial wellbeing until a later time. A medical concern could happen at any time, putting you and them at risk if they are unable to access their finances. Most importantly, you don’t want your parents to fall victim to one of the many schemes that can occur to them.
Like with other aspects of their care, be sure you are doing the very best to ensure your parents have the support and care they need as they get older.
