As you spend time with your parents, you may start to notice small signs that they need help managing their finances. They may think they are still able to handle their finances on their own, but it never hurts to give them some pointers or offer to help if it is becoming too overwhelming for them.
Here are ten ways to help your parent’s better manage their finances:
- Set up Automatic Payments
- Help Them Create a Budget
- Establish a Weekly Budget
- Check for Benefits
- Choose a Power of Attorney
- Hire an Expert
- Make Them Aware of Scams
- Consolidate Their Accounts
- Sort Through Old Financial Paperwork
- Act as Their Trustee
1. Set up Automatic Payments
The best way to ensure your parent’s finances are taken care of is to help them set up automatic payments for their bills. By doing so, it not only makes it less stressful for your parents, but it also gives your parents updates of when bills are due through their email. It also gives you the ability to check in on the charges each month to make sure they are accurate.
2. Help Them Create a Budget
Sometimes all your parents may need is assistance setting up a budget. Sit down with your parents to discuss what is important to them and how much they would like to allocate to saving, leisure, retirement and other expenses.
Related Article: What is Senior Money Management?
3. Establish a Weekly Budget
If your parents need help managing their finances, you can always help them implement a weekly budget for groceries and other activities to help them stay on track with saving.
4. Check for Benefits
Depending on how old your parents are and what type of insurance they may have, they may be eligible for certain benefits. Take the time to do research online and see if they qualify for anything that can help make their lives easier and save them extra money. For example, you could qualify for medical or VA benefits.
5. Choose a Power of Attorney
Do your parents already have a power of attorney in place? If they do not, take the time to establish who they would like to designate this role to. It is better to act now instead of waiting until later to decide this, because by then it may be too late.
6. Hire an Expert
If the responsibility of your parents’ finances is too much for you to handle, it may be beneficial to hire an expert. By doing so, it takes the stress off of you and it allows you to spend more time with your parents without the worry. A professional will also be able to keep a closer eye on the day to day finances.
7. Make Them Aware of Scams
If you haven’t already, take the time to discuss potential scams with your parents. This is a way many seniors get taken advantage of, and it ultimately affects their finances.
8. Consolidate Their Accounts
Make it easy on you and your parents by taking the time to consolidate their accounts. With consolidation, you only have to worry about one bank and one credit card. By taking this action, it will be easier to manage their finances on a day to day basis.
9. Sort Through Old Financial Paperwork
As we grow older, we may start to notice that we are holding onto old financial paperwork in boxes that we do not need anymore. Take the time to sort through this paperwork with your parents to help decipher what is important to keep and what you are able to shred and get rid of.
10. Act as Their Trustee
There is most likely no one that your parents would want handling their finances more that their son or daughter. If your parents need assistance with their finances, make the effort to discuss being their personal trustee.
Related Article: What to Expect When Taking Over Elderly Parent’s Responsibilities
Do you need help managing your parents’ finances?
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