We might notice our aging loved ones spending more than usual. It’s tough to talk about finances, and even harder to try and control their spending.
For some elders, this isn’t new. They might have been shopaholics their whole life, and the reduced disposable income didn’t change their mindsets. Even the elderly who didn’t use to be big spenders might increase their shopping to replace loneliness, boredom, or depression.
With fewer friends and family, they may turn to shopping to improve their mood. With e-commerce, it’s easier for them to spend without leaving their houses as well – unfortunately, this can become addictive.
Excessive spending may even come with hoarding habits. This can be old habits, or new ones – while symptoms of hoarding can occur before age 20, these may decline or intensify throughout their lifetime. Age-related health issues may make it more difficult to manage hoarding behaviors too. Sudden onset of hoarding and excessive spending might also indicate mental health issues.
Sometimes, excessive spending and shopping could be due to dementia. Short-term memory loss makes it hard for them to remember if they’ve made the purchase, even if there was a genuine need. Diminished mental capacity affects judgment, and can result in impulsive buys and messed-up orders.
Individuals with dementia may eventually become unable to manage their finances, and they might end up blowing through their savings and accumulating debt. Here are some tips on talking to the shopaholic elderly, and understanding them better.
Understanding Exploitative Businesses
Some companies are also aware that older customers see shopping as a leisure activity, and also that they may not be as well-versed with online shopping. Businesses may use predatory tactics to upsell products, packages, and “promotions” to the elderly, who may not be aware that they are being taken advantage of. It is thus necessary to bring this point across gently to your loved ones that not all good deals are indeed as good as they sound.
Handling Their Finances
Being able to handle your own money is a sign of independence, and power. Aging already diminishes the autonomy that the elderly have, be it through dependence due to limited mobility or declining mental state. It’s tough for them to give up the autonomy of handling their own finances too.
It can be difficult to take over your older loved ones’ finances, especially if they insist that it’s their money to spend. Nonetheless, it’s necessary to reduce the risk of fraudulent charges.
It might be helpful to bring in a third party. A family doctor can help to evaluate your older loved one’s mental state, and determine the causes for excessive spending. If it’s not an issue of mental decline, then you might need to turn to someone else that your loved one respects – such as a financial advisor, spiritual leader, or a close friend.
Some tips on what to do:
- Use legal authority if needed to halt the excessive spending.
- Try to get legal authority if you don’t have it, but otherwise, you can consider getting guardianship. Going to court is the last option.
- While your older loved one might get upset, it’s a decision between upsetting them now or watching them spend all their financial security.
