After struggling with my finances for more time than most people realize is possible, I began thinking more seriously about what I could do to make things right. I began working hard to go through and identify challenges that I was faced with, including the fact that I had several kids that cost a lot of money. I began thinking of ways to work on saving cash, and it was really amazing to see how much of a difference something like skipping drinks with dinner and working on finding foods we could make at home could really be. I wanted to start a new website all about creating a more solid financial plan. Check out this blog.
5 Ways To Discreetly Help Aging Parents Manage Their Money
As your parents or grandparents get older, the likelihood that they will need help managing their finances increases. However, independent adults or their busy adult children may not want the younger generation to completely take over their finances. How can you find a happy medium that benefits everyone? Here are a few things any family can do.
1. Meet with a Financial Planner
A financial planner is an independent third party who can help with two important goals. The first is, of course, to help your parent get on a solid financial path and stay there as time goes by. However, the financial planner can also help defuse tensions, avoid family squabbles, and explain financial matters in ways everyone can understand.
2. Check-In on Financial Activity
If possible, agree on ways to check on certain important financial activities your parent is (or should be) making. One easy way to do this is for a trusted family member to have access to bank or brokerage accounts. You might also arrange to be an emergency or authorized contact on things like utility accounts, mortgage loans, or other key accounts. You don't have to do the parent's transactions, but you can ensure things are paid on time.
3. Keep Communications Open
It's important to have open and honest — but kind — discussions about finances. Focus on the interests and needs of the parent rather than your own feelings. Listen to them and follow their lead. Some families find the best way to keep communications open is to work with a therapist or counselor for tips on talking about money in productive and positive ways.
4. Locate Documentation
No matter how much or how little your parent wants you to help with money management, the best place to start is knowing what their assets and obligations are. Help the person locate and organize in one place hardcopy records of their accounts, loans, retirement arrangements, credit, pensions, life insurance, and other things. They can reference these and you have them handy should you need to take over any elements.
5. Do Estate Planning
Estate planning involves both personal decisions about care and making arrangements for their estate after their death. It provides a means by which your parent can express and codify their own wishes. This helps them feel empowered. And because estate planning requires the location of assets and debts, it also means you only need to have one conversation about the current state of their finances.
Where to Start
Financial matters are challenging for most families. With the added complexity of an aging parent and their independence at stake, it's even more important to seek professional help. Start by meeting as a family with a financial planner in your state today. With their help and these tips, everyone can get the assistance they need.