As we get older, we tend to rely less on our parents. In return, as our parents get older, it’s often our role to help them out the best we can. One of the areas they might need assistance with is managing their finances.
While money can be a difficult topic to broach – especially when the topic can be perceived as ‘someone else telling me what to do with my own money’ – helping your parents manage their finances can be beneficial for them in the long run. At the very least, it’s one less thing for them to worry about during retirement!
Here are some of the ways you can help your elderly parents manage their money:
Consolidate Their Accounts
Simplify their finances by combining similar accounts into one. If they have multiple chequing accounts, merge them into one. If they have multiple accounts with multiple banks, consider consolidating everything into one bank, with one card, for easier management.
Create a Data Organization Document
Having one document for all their finances gives them a single central location to get all of their financial information. Investment statements, professional contracts, important passwords, legal documents – anything they might need, put into a shared document everyone can view and manage!
Make Sure Their Estate Plan is Up To Date
Another important item to cross off the list is ensuring their estate plan is current, and if they don’t have one, that they consult with a professional to create one. This gives everyone one less thing to think about when the worst comes, and makes sure important legal documents such as Powers of Attorney or Wills are up-to-date, accurate, and reflect their current wishes.
Hire a Professional
If getting everything into one place is daunting to you or your parents, it might benefit everyone to consult with a financial professional who might have a full understanding of exactly how to help you, and would be able to make recommendations that you wouldn’t have thought of.
While the idea of assisting aging parents with their finances can be overwhelming, early preparation can be a game-changer. Check out the infographic below for more information:
