Understanding The Financial Challenges With Elderly Parents

Jia Hui

Jia Hui is a content marketer who loves helping others and hopes to make this world a kinder place in any way she can.

Author
Jia Hui

Jia Hui is a content marketer who loves helping others and hopes to make this world a kinder place in any way she can.

Published on
Contents
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Managing your parent’s finances can be a touchy subject; however, it is a conversation that must be hard for those parents who haven’t controlled their finances. Although your parents have looked after you for most of your life, it is time to start returning the favour by helping them with their financial difficulties. 

As they get older, they may find it more difficult to control their finances. Additionally, the money they receive with their pension may not be enough to pay their bills. These financial worries can cause anxiety and stress for your parents. 

You don’t need to be a financial expert to understand how to control your parent’s finances and you don’t need to know everything about personal finance. You just need to understand what is important and what isn’t.

How To Help Your Parents Control Their Funds

Controlling your parent’s finances can be an emergency. Something drastic could happen when they are older such as a health condition. However, if your parents are still in a healthy condition, then you will need their consent to deal with their money. Have a sit-down conversation with them and ensure you are on the same wavelength. 

Make a List of Parent’s Accounts

Once you have a conversation with them about their finances, you must make a note of the different accounts they have. Once you have this information, you will be able to monitor your parents’ bills and outgoing payments. Additionally, you will understand their financial responsibilities. 

This includes debit and credit cards, mortgage and rental payments, social and government benefits, household utilities, loans and long-term payments. 


Once you understand the finances that leave your parent’s bank accounts, you will know how much money they require each month. 

Create a Payment Schedule

The next thing you will need to do if you are managing your parent’s finances is to create a payment schedule. Having a payment plan will help you understand when you must pay their bills. This helps you reduce the stress of controlling your parent’s finances. 

There are many online tools and mobile apps that you can use to manage your parent’s finances. If you don’t want to use an app for your parent’s finances, you can consider creating a spreadsheet instead. 

Make Sure You Have Their Personal Documentation

Personal documents are something else you will need when controlling finances. As we get older, these become even more important, so make sure you have them all. 

Keeping up with their medical information is also very important, especially as they get older and become more reliant on them. Furthermore, you should have their emergency contact information which should be yours if you are managing their finances. 

The documents that you need to ensure you have are medical documents, power of attorney, identification, marriage and divorce papers, property deeds, wills, health insurance policies and cards, bank and financial documents and deposit boxes and contents. 

Review Investments, Loans and Other Financial Accounts

If your parents have been investing to help with their wealth and retirement fund, you should also get access to these. Furthermore, if these investment accounts have not been touched for many years, there could be a lot of money to withdraw. 

Helping Them Understand The Online Risks

The internet can be very dangerous, which is why you must look after your parents. This doesn’t mean you must monitor them every time they log onto their computer. You just need to ensure they are safe when online. 

There are many online scams that target people who are desperate and most of those who have retired are desperate. They are likely looking for other ways to earn money while they are retired so they have enough money to spend each month.

There are many scams that can occur; however, these are some of the more common types of scams for pensioners. Some of these include sweepstakes & lottery scams, phone scams, computer tech support scams such as the Revolut scam, and the Grandparent scam. Even romance scams targeting widowers and widows are quite common. Make them aware of these types of online scams so it reduces their risks online.

Summary

Having a discussion about money with your parents will seem like the tables have turned and that is true. However, the stuff they taught you when you were younger may not be relevant for them now. The internet is one of the reasons for this, which is why you must educate them on new life hacks to help deal with their personal finances when they are older. 

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