Helping Your Older Parents Review Their Finances

As we undergo the aging process and getting older managing finances can be a huge burden. It is worth it to consult with a financial planner if you have the means to do so to see where your loved one is at in terms of their financial outlook for their future. Hiring a certified financial planner may not be in your loved one’s budget but you start by initiating a conversation with your older parents.

Start here…

I always suggest you sit down one on one with your aging parents to go over their monthly bills and you want to get very specific. Think about all the bills that come in on a regular basis such as utilities (electricity & gas), rent, mortgage, cell phone, credit card, television, phone, internet, property taxes, water/sewage charges, homeowners insurance. You want to take a look and see what are the expenses going out and just as importantly what finances are coming in. Monthly Social Security check, pension, income from rent (if this applies to your aging loved one), retirement distributions (if applicable) and any other financial income that your loved one receives on a monthly basis. 

Monthly Expenses

What are the expenses going out and just as importantly what finances are coming in

It is important to have an idea and know what your loved one has coming in and out because with the aging process health issues tend to arise which can be very costly especially depending on what health insurance your loved one has. If they have the type of insurance that covers all the things, great, you are solid. However the majority of people are uninsured and finding an all inclusive plan that includes 100% coverage is rare. Whether it’s a monthly cost associated with your health insurance, out of pocket expenses for medications, co-pays for visits with providers, or screenings, blood tests, hospital bills. When you put all of these items together you’ll find that these costs can add up very quickly. 

Being aware of these costs can help you as a caregiver know where your loved one stands when it comes to their financial future. Just as important is knowing things like outstanding debts, assets, resources such as bank accounts, checking, savings, retirement, etc. For a lot of people sitting down and having these types of conversations can be very hard but it is necessary to be able to have an idea of what your aging loved ones' financial outlook looks like as they get older. 

Some tips for having these types of conversations is just being open and honest about the idea of all the expenses that come with chronic illness, particularly if your loved one is dealing with health related issues. At least then you can know what they can expect out of pocket costs can potentially look like and having a plan will help both you and your loved one along the way. 

Since we are talking about finances it is important to explore any tax related exemptions or senior related discounts your loved one may be entitled to. What type of cable service is your aging loved one being charged for? Do they have a ton of sports channels included in their service but not watching them? Are they better off with another type of plan? Are they paying for magazine subscriptions that they are not using? Donating to random organizations without their knowledge? Having a very specific idea about all of these things can be helpful for your loved one undergoing the aging process. 

Not familiar with what financial resources may be available for your aging loved one? Check out your local department of aging or a senior center in the immediate area. They will likely have case management type of services available to help you for free or a reduced cost.

On the AARP website you can find a tool that serves as a guide to help you with choosing a financial advisor if that is something that you are able to include in your budget. For a lot of older folks they may be a long time customer of their particular bank that they use. If that’s the case for your older parent it is worth inquiring if they can assist with a referral for a certified financial planner within their network. Again this is a personal decision but one that you should get a recommendation from someone you trust. Happy financial planning!

The Aging Appropriately Planner includes a monthly budgeting tool to help you track, manage and assist your loved one with their finances!. #AgingwithOrganization