By: Michelle Hougland
While it may be uncomfortable to think about, there could come a time when your parents are no longer able to manage their finances. They may be reluctant to ask for help when that moment arrives, which means you might need to take the initiative. Approaching this situation with sensitivity and patience is essential to making sure your parents feel supported rather than overwhelmed. Here are some tips to help you navigate this process.
Start The Conversation Before There is a Problem
The best time to start a conversation with your parents is before any issues arise. While it might not seem like it will make a big difference, addressing the topic early allows your parents time to process the idea and become more comfortable with the possibility of someone else stepping in. You may also need to obtain their written consent in advance, as privacy laws can limit your ability to manage their finances later on. Be sure to keep the rest of your family informed throughout the process. Your relatives can offer valuable support to both you and your parents.
Start Slow
You don’t need to take control of your parents’ finances all at once, and in most cases, you shouldn’t. Begin by offering support gradually, stepping in only when both you and your parents feel it’s necessary. Review their finances together, and make sure they continue to have input on how their money is managed. After all, it’s still their money, and they deserve to retain as much control as possible for as long as it remains safe for them to do so.
Help Your Parents Get Organized
A good first step in helping your parents with their finances is to gather and organize all the essential information they may need. This should include a list of key contacts, account numbers, and important legal documents such as birth certificates, insurance policies, and wills. Make sure everything is up to date and store it in a secure, easily accessible location that both you and your parents can access when needed.
Keep Things Simple
When it comes to managing your parents’ finances, simplicity is key. Start by reviewing their sources of income, such as retirement benefits or savings accounts, and arrange for direct deposit whenever possible. This helps ensure funds are consistently available, even if they’re unable to make deposits themselves. Next, review their household budget and identify opportunities to streamline it, making it easier to follow and manage. Setting up automatic bill payments can further reduce stress and help keep everything on track.
Know the Signs of Financial Problems
While it’s important to talk with your parents before any issues arise, it’s equally crucial to recognize the warning signs when problems begin. Watch for unusual spending that doesn’t align with their typical habits, stacks of unopened mail, or noticeable memory lapses. All can be indicators that your parents may need help managing their finances and keeping their spending on track.
Older adults lose billions of dollars each year to scams and fraud, making it essential to take proactive steps to protect your parents. Focus on three key areas: education, security, and monitoring. Start by educating them about common scam tactics and encouraging caution when it comes to unsolicited emails, phone calls, or messages. Help them create strong, unique passwords and ensure their devices are protected with up-to-date antivirus software. Additionally, monitor their online activity, financial accounts, and social media for any indications of suspicious behavior.
A City Bank representative is a valuable resource for exploring practical ways to help older adults manage their finances.
