It’s Time to Talk About Money

When it’s time to care for your parents, it’s also time to have that difficult but necessary conversation about finances. Discuss their income, and debts, and request access to bank accounts and essential documents related to their health, care, and finances. Understand your parents' financial situation by inventorying their assets, bank accounts, and legal documents like wills and deeds. Knowing what they have and where it’s located helps you prepare for potential issues. If their retirement savings fall short, consider adjusting investments or cash flow. Planning for future financial support is crucial if they might need your help. This may be a conversation they are reluctant to have, but it’s important to be firm and help them understand that it’s for their benefit.

Involve Your Family and Loved Ones

It’s important to keep everyone involved and on the same page. Have clear and open discussions with your siblings about your parents' health, financial situation, and any potential caregiving responsibilities. If you have a partner, make sure to discuss the time and financial commitments that caring for your parents may require.

Organize Financial and Legal Documents

Secure all necessary documents, such as account numbers, legal papers, and insurance policies, in a safe place. Ensure accounts are current, documents are valid, and important contacts are noted. Store everything in a secure, fireproof box. Reassure your parents that you’ll only step in when absolutely necessary and move at a pace that’s comfortable for them.

Protect Against Scams and Identity Theft

Older adults are often targets for scams and identity theft, especially with technology that may be unfamiliar to them. Make sure to monitor their expenses and keep a close eye on their financial activities. Discuss the importance of credit monitoring, set up transaction alerts, and help them opt out of spam and other threats to protect their finances.

Plan for Unexpected Costs

As your parents age, health expenses may increase, and long-term care might become necessary. Explore options like assisted living or home care, considering that costs vary by service and location. Consulting with a care advisor can help you choose the best option for your parents.

Final Tip: Keep Finances Separate for Financial Health

Lastly, we strongly suggest keeping your finances separate from your parents’. This is crucial to maintaining your financial stability during this challenging period.