As your parents grow, it becomes difficult for them to manage their finances. When they step into the 60s or 70s, their cognitive function begins to decline and can dramatically affect their ability to manage finances. Money management is one of the biggest concerns among the youth, let alone the elderly. However, everyone doesn’t need to have difficulty managing their money. Even if you think your patents have potential to manage their personal finances, it is a good idea to inquire about their financial state – Do they have any debt or are they having difficulty meeting regular expenses?
It is wrong if you think that the elderly do not need financial counselling because they do not have to spend money as much as the youth. Food, utility bills, transportation, medical bills add up quickly. It may take a large chunk of money out of their pension funds leaving them with very little money in case of emergency. Here is how you can help your elders with money management.
Automate their finances
Savings are important until your last breath. Financial emergencies can catch you on the hop anytime. It is important that you have some money to meet additional expenses. Assist them with having a new savings account open so that every month they can transfer a smaller proportion from their pension funds to it. This will help them where they need to turn in case of additional expense.
Help them create a budget so that they know how much they have every month to meet all of their regular expenses. Otherwise, pension funds will quickly drain away. Use online apps that automatically pull a fixed amount of money from their pension account. Encourage them to use online budgeting apps so that they do not have to contribute to it manually. If it is difficult to manage password and other confidential details of their online accounts, download and online app to manage their passwords and accounts.
Find out if they need a loan
During the old age, it becomes difficult to manage all expenses with available funds especially when an emergency pops up. Thankfully, direct lenders provide easy access to funds. The elders of your family can get funds despite bad credit rating, but it is important that they borrow money from a reliable direct lender. When they need money, the first question they should ask themselves, “Where to get a loan in Ireland with bad credit,” You can research online lenders on their behalf. You will find several online lenders who will be ready to lend you money at affordable interest rates.
Further, you can assist them in evaluating their credit needs. It is important that they do not borrow more than their affordability. Getting into debt at this age can take a toll on their finances. Make sure that you consider all of their income sources and monthly expenses to find out whether they can pay off debt. Otherwise, the whole of their pension funds will likely go in payments of debts.
If you have a doubt that your parents do not pay their bills, you should immediately start tracking them. You will need access to their accounts if you do not want to pay it out of your pocket. You will need to become an authorised user to make transactions in their names, but it does not mean that you will not encourage elder people in your family to take care of their finances themselves. If you want to help your parents to pay their bills including outstanding debts, ask these questions yourself:
- Do they have a budget?
- Are they meeting all of their monthly expenses?
- Do they have any debt?
- Do they donate money to charities?
- Do they commit default on bills and loans?
Communicate with them properly
Before you take hold of their finances, you should communicate them if they won’t help. Do not try to intervene in their financial life unless they ask you. They will likely take your assistance if they are ill. You need to openly tell them how you are going to organise their financial affairs.
However, your ultimate goal is not just helping them with their finances. You also need to respect their wishes. You must know what they want and try to help them get that. If you disregard their wishes, you will disappoint them and spoil your relationship with them.
The bottom line
If you want to help your elders with money management tips, you should help them with creating a budget, automate their finances, find out their needs and openly communicate with them.