Q. As my parents get older, I’m realizing I don’t know much about their financial situation. What steps can I take now to make sure I can help them later if needed?
A. It can be awkward to talk with our parents about money, but it’s one of the most important conversations we can have. For many older adults, there comes a time when they need help from someone they trust to manage their finances. Having these discussions now, before any issues arise, can make the process easier for everyone.
Here are a few steps to consider.
- Start early. Talk to your parents about how they would want you to handle their finances before it becomes an emergency. These conversations can happen gradually and be revisited as circumstances change.
2. Organize documents. If they are willing, gather and organize account numbers, bank statements, bills, retirement fund details, and any other financial paperwork and put it in a safe place.
3. Get it in writing. Have your parents give written consent for you to talk to their banks and financial advisors so you don’t run into issues with privacy laws.
4. Automate income and payments. Consult with an expert first, but it may be a good idea to work with your parents and their financial institutions to set up direct deposit for income and automatic payments for bills. These payments should be verified each month.
5. Keep your accounts separate. It may be tempting to open joint accounts, but most experts say it’s best to keep your finances separate to protect everyone involved. Consult with an expert you trust to find out if this would be appropriate in your situation.
6. Turn to professionals. If your parents already work with a financial planner, accountant, or attorney, schedule a meeting with them together. A legal expert can also help establish power of attorney, which would give you the ability to make certain decisions on your parent’s behalf if they are unable to do so.
Of course, not every parent is ready to hand over documents or decisions right away. Sometimes it helps to start small and build trust over time. But starting the conversation and taking a few steps now can give both you and your parents peace of mind, knowing their finances will be managed the way they want.
Older adults who need help managing their finances don’t have to go it alone. AgeSpan also offers a free Money Management program, designed to help adults aged 60 and older, as well as individuals with disabilities, with basic financial tasks. Through this program, trained volunteers help with tasks such as paying bills, budgeting, and writing checks. You can learn more about the benefits of this program or sign up to be a volunteer on our website: www.agespan.org.
Are you caring for an older adult or need help finding healthy aging resources? Our experienced staff is available to help. Visit us online at www.agespan.org. You can also call 800-892-0890 or email info@agespan.org.
Joan Hatem-Roy is the chief executive officer of AgeSpan, which serves the following cities and towns: Amesbury, Andover, Billerica, Boxford, Chelmsford, Danvers, Dracut, Dunstable, Georgetown, Groveland, Haverhill, Lawrence, Lowell, Marblehead, Merrimac, Methuen, Middleton, Newbury, Newburyport, North Andover, Peabody, Rowley, Salisbury, Salem, Tewksbury, Tyngsboro, Westford, and West Newbury.
First published in the Eagle-Tribune.
