Helping your aging parents manage their finances – How you can be of help

Just as death and taxes are inevitable, it is also true that majority of the people find it tough to handle their finances and make payments on their outstanding bills. The aging population is growing very fast and hence this is a situation which is becoming extremely common. As per the Department of Health and Human Services, by the time we reach 2030, there will be around 74 million people who will have crossed the age of 65 which is much more than twice the number that we saw in 2000. The AARP found out in a report that the number of people who are being supplied as caregivers of a family is increasing day by day due to the increasing numbers of seniors who are getting frail in future. So, here’s how you could help your parents.

#1: Find out all documents and accounts

Whether you prefer doing this or not, but you have to change your role from a son or daughter into a financial detective. You will be lucky if your parents keep all financial papers and documents in an easy-to-find file and otherwise, you’re in for some tough time. Majority of the clues will be on Schedule B where the interested income, dividends listed and the names of the financial institutions.

#2: Plan ahead of time

Are your aging parents still doing well? If answered yes, boost them to organize their financial map, the details of their financial accounts and the safe deposit boxes along with the names of the professionals. If you see that your parents are hesitating to share such details with their growing kids, you can at least learn from where you can get all information in an emergency. If you know this much, that will be enough for you and for your parents.

#3: Start paying off the bills

If you have any sort of concern where you think your parents won’t be able to pay off the bills on their own, you should start doing that on their behalf. Make sure you have a list of all expenses and assets before you pay the routine bills. You may even seek help of a financial planner or an elder care attorney so that you can prioritize about what can be paid first and what can be paid later.

#4: Automate all accounts

Just as it is advisable for a young adult to automate his savings account so that he doesn’t forget to save money, similarly you should automate the accounts of your aging parents so that they don’t have to remember about making payments. There are many aging parents who suffer from dementia and they tend to forget things. During such situations, if you can be careful enough to set their accounts on the auto-pilot system, you don’t require worrying about making timely payments as you would also have to remember your own payments as well.

Therefore, it’s your duty to help your parents when they grow old as they were the ones who taught you about your finances when you were a kid. Now that they’ve grown old and can’t take financial decisions on their own, you may follow the above mentioned tips to assist them.

Image source: https://pixabay.com/en/coins-calculator-budget-1015125/