How to help your elderly parents with the finances
Helping elderly parents with their finances can be challenging, but ensuring that their financial health is well-maintained is necessary. Here are some steps that can help you assist your elderly parents with their finances:
Have a conversation
Start by openly and honestly conversing with your parents about their finances. Discuss their income, expenses, savings, and investments. This will give you a clear understanding of their financial situation and help you identify areas where you can help.
Money is a sensitive topic, so keep them included and be patient.
Create a budget
Once you understand your parents’ finances, help them create a budget. This will help them keep track of their expenses and ensure they live within their means.
Automate bill payments
Set up automatic bill payments for your parents’ regular bills, such as utilities, insurance, and mortgage payments. This will ensure that they always make all payments and avoid late fees.
Consolidate accounts
If your parents have multiple bank accounts, credit cards, or investment accounts, consider consolidating them. This will make it easier to keep track of their finances and reduce the risk of fraud.
Consider long-term care insurance
If your parents are approaching retirement age, consider purchasing long-term care insurance. This can help cover the cost of medical care and assisted living if they require it in the future.
Plan for the future
Help your parents create a will and a power of attorney. This will ensure their wishes are respected and their finances are managed properly if they cannot make decisions independently. Make sure that all important documents are located and kept safe:
- Bank statements
- Wills
- Insurance policies
- Mortgage information
- Car title
- Social Security cards and payments
- Pension records
Seek professional advice
If you need help with how to help your parents with their finances, seek advice from a financial advisor.
At 1st Advantage Bank, the financial security of our clients is our top priority. We apply the latest technology to keep your information safe.