It’s tough for us to watch our parents decline in cognitive ability. Tasks that used to be easy for them, like managing finances, have now become a struggle.
Financial capacity declines as we age, and can be due to physical illnesses, side effects of medication, loss of a spouse, or depression. Here’s how we can keep an eye on aging adults’ finances.
Signs of Financial Struggle
Our loved ones may not be upfront when they’re struggling with finances. Some signs to look out for include:
- Unpaid bills
- Unopened mail
- Unexplained credit or debit purchases
- Struggling with activities of daily living (ADLs)
- Signs of scams or fraud
How then, can we help them?
Go Paperless
The easiest way to make sure bills are paid on time is to automate the process. Go for online payments, but make sure your older loved ones can remember their passwords.
You can also set up email or text notifications from the billing companies so they’re reminded of the due dates.
Look Out for Scams
The elderly tend to be the targets of financial scams, especially online ones. Here are some common scams to look out for:
- Lottery scam: Scammers request for money upfront to cover taxes on a prize you’ve won
- Phishing scam: Scammers try to get personal details like credit card numbers
- Telemarketing scam: Scammers call you to sell a fraudulent product
- Charity scam: Scammers try to get you to donate to a fake charity or cause
Keep Track of Important Financial Documents
Especially if these are hard copies, it can be easy to lose them. Make sure you know where the documents are.
Keep Track of Financial Accounts
Older folks may have accounts with multiple banks, and it can be tough to keep track. Get them to let you know at least which banks they’re with.
File Insurance Details
Make sure your older loved ones know what insurance policies they own, and where the details are. Find and consolidate important information like policy number and policy provider.
Track Bills, Debt and Income
Keep track of the bills and debts that your loved ones might have. You might end up being the one paying for them as well, so it’s good to know what’s the total amount, what’s the method of payment, and which accounts the money is coming from.
Similarly, you should know where their cash inflow is coming from. Is it from the pension, retirement funds, dividends, or so on?
End-of-Life Legal Documents
Check on a few end-of-life legal issues – power of attorney, last will and testament, and living trust. You’ll need to have a discussion with your loved ones on what they’ve done for these documents, or if they want to do up any of them.
You can also check if they have any personal care agreements, such as who will take care of them when they can no longer take care of themselves.
