Your parents might need a little extra help in their advanced age. Their finances are equally as important as their health. Aging people retire, meaning that they’re unlikely to come into any new sources of income. The money they have is the money they have, and it needs to last an indefinite period of time.
Talk to your parents about financial security as soon as possible to ensure their safe future.
Create a Productive Financial Environment
You parents may feel a deep attachment to their home, but can they still afford it? If the home is already payed off and the utilities are reasonable, they may not want to sell it. If the home is highly profitable and they’re willing to downsize, the profit they acquire from the sale of their home can give them some financial padding.
Smaller homes are typically less expensive to maintain. Utility bills cost less, especially for cooling and heating. Less property means a lower cost for lawn maintenance, and if the roof ever needs to be repaired, it’s a smaller roof. On top of the financial benefits, smaller homes equipped for seniors are often easier to navigate and maintain. They may allow your parents to experience independence for longer. You might also want to investigate assisted living facilities – your parents might need some extra help.
Use Savings in Conjunction with Investments
People of advanced age need savings to cover emergency costs. If they’re still active and vital, they might even want to take the occasional trip away for a week or so to socialize and enjoy their retirement. While savings are important, it’s important to note that their growth is meager. Even in a high yield savings account, the money will still grow slowly.
Your parents are never too old to start trading. By using some of their money to trade or invest, they’ll see larger returns much faster than they would patiently waiting on a savings account to deliver interest. A massive investment isn’t necessary. They can start by investing a little bit and slowly make more investments with what they gain. This is a great way for seniors with no expandable source of income to see more money than they ordinarily would have.
Set Up Autopayments
Seniors may not remember to pay their bills on time. By setting up autopay options for the things they use everyday (like their household utilities, rent, and phone bills), they won’t need to remember to make payments on time. This will prevent service interruption. In order to prevent autopay bills from disrupting the budget, a separate account can be created and funded specifically for autopayments.
Use your parent’s main bank account for their daily, fluctuating expenses. They’ll only need to concern themselves with the , and having the bills come out of a separate account that has already been funded will prevent them from accidentally overspending and having a bill come due that will overdraft their account.
Create a Functional Budget
The kind of budget you create will largely depend on your parents’ level of independence. If they do their own shopping, rather than depending on grocery deliveries, they need to be able to understand how much money they have, as well as the minimums and maximums they can spend.
Bill money set aside, sit down with them and examine how much money they have left over. This money needs to be divided into categories and priorities. If your parents have a basic understanding of technology, you can set them up with budget tracking apps on their phones. They can input their expenses based on their receipts and actively track what they’re spending and when they’re spending it.
Simplifying your parents’ finances will allow them to enjoy their independence for as long as possible, helping them make the most of their agency and live a fulfilling life. Always be there to help when they need it.
Audrey Robinson is a blogger, currently writing on behalf of online data libraries like Aubiz. She might often be found online, sharing her tips and suggestions for self-improvement, improving one’s career opportunities and living a more stress-free life. Feel free to reach out to her on @AudreyyRobinson