Kare11.com, a news station based out of Minneapolis,
Minnesota recently released a list of tips for helping the elderly with financial planning. Those tips, however, certainly aren’t limited to those
living in the state. The fact of the matter is that the elderly people of today
are not nearly as prepared as they should be financially. Whether it’s due to a
lack of education “back in the day” or changing financial expectations, most
elderly people need help getting their finances in order.
First things first, you can’t just approach your parent or
grandparent about finances without a gentle touch. Bring the topic up
respectfully and kindly and explain that you are only interested in the
person’s wellbeing. Also explain, however, that his or her financial planning
or lack thereof does have the potential to affect the entire family. If an
elderly loved one hasn’t prepared for long-term care, for example, and it’s
needed, the family has to deal with the burden. A financial planner can be of
great help to you when managing the finances of an elderly loved one. However,
talk to the loved one gently and one-on-one first before bringing a
professional into the mix. Who knows- your loved one might even be financially
prepared. If not, however, explain that you do have options for getting those
“money matters” in order.
A lot of elderly people are uninformed about their spending
habits. In fact, many of them have their bills set up to be paid automatically,
thanks to help from their well-meaning loved ones and thus have no idea of how
much they actually spend vs how much they earn in a given period. Help your
loved one to set up a budget that shows clearly what they’re bringing in versus
what they’re spending, as well as what they’re saving. Show this budget to a
financial advisor and have it tweaked for maximum benefit to your loved one.
You also want to make sure that your elderly family member
has all of his or her financial ducks in a row so to speak. In other words, all
important financial paperwork should be filed somewhere safe and somewhere that
you or another trusted loved one are aware of. If a will has not been
established, get one! Elderly people need to be prepared for what will happen
at the end of their lives; in fact, we all do.
If you can approach your elderly family member in the right
way and help him or her to get financial matters in order, you’ll quickly find
that life is a lot easier for everyone involved and that you all have greater
peace of mind.
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