Over time, our roles with our parents often evolve. One of the most sensitive, yet crucial, transitions involves discussing their finances for the future. For many families, talking about money can be difficult. It’s a topic that often gets pushed under the rug and only brought out in dire circumstances. But as our parents get older, it becomes increasingly important to have these conversations about finances, no matter how difficult.
Why Discuss Finances?
- Preparation for the Future: As parents age, they might need more extensive care or medical treatment. Understanding their financial situation helps families make informed decisions about healthcare, housing, and other necessities.
- Estate Planning: Having a clear understanding of assets, liabilities, and wishes ensures that estate matters are handled according to your parents’ desires. This can prevent disputes and complications down the line.
- Prevention of Fraud: Sadly, the elderly can become targets for scams and financial fraud. Being aware of their financial situations can help in monitoring unusual transactions and preventing potential pitfalls.
How to Initiate the Conversation
This kind of conversation may be awkward or uncomfortable at first, but there are some things you can do to make it a bit smoother. First is making sure you’ve chosen the right time and place. Somewhere comfortable and appropriate – like after a family meal at your home, rather than at a restaurant while you wait for the appetizers.
Make sure your parents feel included in the conversation, and that they know you’re approaching this out of love and concern. Parents might feel ganged up on if there are multiple people trying to pry and prod at their finances, but allowing everyone to speak openly, freely, and ask questions to determine the best course of action will make sure everyone is on the same page.
It might also be a good idea to seek out professional financial guidance. A neutral party with a keen understanding of how to manage and plan finances – such as a financial planner in Barrie – might help your parents better in the long run.
At the end of the day, it’s also important to remind your parents this conversation isn’t about dollars and cents – it’s about ensuring their security and peace of mind so they can enjoy their retirement to the fullest.
