Money is often a subject people don’t want to talk about, especially when it comes to discussing bank account information. As the caregiver of a senior parent, though, there are important financial discussions that you need to be engaged in. Here are some tips for managing your older parents’ finances:
1. Consolidate
Think about how many different accounts you have that control your money. Savings, checking, PayPal and maybe even Bitcoin all hold importance in how you move and use you money. Your parents are likely in a similar, yet more low-tech situation. They may have various bank accounts or even paper bonds. Consolidating accounts is an easy way to make keeping on top of all of this less of a hassle. Have one savings account and one checking account so there is less confusion and you can track where money is going and coming in under one streamlined platform.
2. Go digital
If helping manage your parent’s finances, you have probably been reverting to sending checks in the mail to pay for bills. This can get messy quickly if you misplace your checkbook or the letter stating how much is owed on utilities or other accounts. Avoid potential disaster by turning on automatic bill pay wherever you can. Utility companies, phone services and even Internet providers can all withdraw an allotted amount from your parent’s account each month so you don’t have to worry about getting the money in on time. Plus, instead of going to your parents to help them sort through and pay bills, you can do something fun and spend quality time together.
3. Talk about what’s important
Many people feel guilty when they finally take the step to help manage their aging parents’ finances. It may feel like you are taking control of their lives, especially if they are still capable of handling their money themselves. However, in the event that something happens, like sudden-onset dementia or an accident, you need to know what bank they use, how much their life insurance policy is worth and how they want to spend their money. Care.com mentioned it’s better to talk about financial matters now than to realize it’s too late to start the discussion. Talk with your parents about what is important to them financially. Maybe they want to be able to afford organic groceries or start a college fund for their grandchildren. You can help them set a budget or other plans to make these hopes and dreams a reality. When you know what your parents prioritize in terms of money, you can act accordingly in the event that they can no longer do so themselves.
4. Think about hiring a professional
Not every family has someone who is mathematically-minded or wants to be in charge of someone else’s finances. That’s OK! This is the perfect opportunity to hire a professional to be sure your parent’s money is being dealt with in appropriate ways. Bankrate noted that attorneys, tax preparers and financial planners can all help you take care of your parents‘ financial health in a low-stress way. Plus, if you have any siblings concerned with how one another will tackle your parents’ funds, these professionals provide an objective viewpoint and years of knowledge to calm any fears of money mismanagement.
5. Establish power of attorney
You’ve likely heard the term power of attorney. Your parents can deem someone a POA, meaning he or she is in charge if the senior is mentally or physically incompetent. Adult children of seniors with dementia or Alzheimer ‘s should be particularly on top of this legal act, as they may need to make financial or medical decisions in lieu of the parent who can no longer do so themselves. You can work with a law attorney to start and complete the process of establishing yourself as your parent’s POA in the event you are needed. The process can take months and may be costly, so be sure to do so before it is too late and your parents really need your assistance. You may even have to go through a court process with a guardian ad litem to prove you can take care of your parent’s affairs, so be sure to get the process started when you can.
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