Getting older, as with any other point in life, has its ups and downs. On the one hand, seniors tend to care less about what other people think and they’ve gained a lot of life experience that can be highly beneficial. On the other hand, retirement brings with it a whole new set of financial circumstances that can take some adjusting. Your elderly parents may benefit from your help in managing their finances.
Prevent Them From Running Out of Money
Though the coronavirus pandemic created an exception, life expectancy has been trending upwards for the past several years. While that is generally a good thing, that does put people at a greater risk of outliving their money. It can be easier to do than you might think, especially if you don’t keep tabs on what you have left in different retirement accounts. Being involved in your parents’ finances opens the door for conversations about how much money is available. It can increase spending accountability and help monitor costs so that they don’t outpace the available funds.
Protect Them From Financial Scams
There are some pretty shady people out there who target elderly individuals like your parents for a living. Because of the kind nature of many elderly people, they can become easy prey for scammers. They aren’t the only ones to watch out for though. Predatory lenders target the most desperate borrowers they know they can take advantage of. Fortunately, if you can establish a relationship that allows you to talk openly with your parents about their finances, you can help them avoid getting caught up in financial scams.
Preparing for Problems
No one wants to think that they could become incapacitated and unable to handle their finances, but it does happen. The risk of suffering a stroke increases dramatically with age. There is also an increased risk of mental impairment due to dementia. If you can get involved and help your parents manage their finances early on, it helps set the groundwork for you to take over for them if they can no longer manage their finances on their own.
Helping your parents manage their finances may seem a little backward, but it can do a lot of good. You can help them avoid running out of money, protect them from financial scams, and prepare for situations that may cause them to lose the capacity to handle things on their own. Start the conversation early on so you can lay the groundwork to make it easier to be involved down the road.
Read this next: More People Are Concerned About Their Financial Future: 4 Steps to Protect Yours
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