Three months ago, social workers observed that there were more senior citizens who had been cheated or financially abused by their own children. There were some cases where the children would manage their parents’ money and end up taking their savings for themselves. While others trick their parents into selling their homes and leave them homeless. This is the sad truth that we have to swallow!
However, if you belong to the fraction of people who love their parents and want to take care of them from the goodness of your heart, consider these 5 Ways To Manage Your Elderly Parents’ Money:
1. DISCUSS ABOUT THEIR NEEDS AND GOALS
You have one task – to organize your elderly parents’ financial life. Know what issues or topics to discuss that will aid this task. Due to the declines in someone’s body as they age, topping the list is healthcare. You must introduce the advantages of life insurance, medical insurance, or long-term care coverage policies. Also, talk about estate and other assets. Having a last will and testament ready is a crucial thing. Then, talk about what they want to accomplish with their money.
Emphasize on the benefits of the talk and speak with love. Delaying the talk will only be more expensive because as health declines, premium prices increase.
2. DO YOUR RESEARCH
After seeing eye to eye on the important topics, you must prepare the documents needed. These documents are the bank statements, credit card bills, tax records, investment accounts, insurance policies, and so on. Review their current financial situation with these documents. Then put these in one safe place such as a relatively small safe deposit box at home. Grant access only to the people who are really trusted (e.g., the lawyer or immediate family members).
3. IMPLEMENT A MONTHLY PROCESS
Each month you must ensure that their bills are paid, their income are accessible, and their living comfortably.
To pay recurring bills automatically, some banks enable automatic transfer of payments. Use this system to pay for credit card bills, loans, and rent. To make their income from investments accessible, help them set up direct deposits. Lastly, to help them live comfortably, you must review their financial activities each month.
4. PROTECT THEM FROM SCAMS
From fake contractors to reverse mortgage scams, con artists of today had come up with more sophisticated ways to fool elderly people to get money or to sign away equity on their homes. Aside from this, handphone scams are on the rise. Common handphone scams occur when an unknown number contacts you and tells you to collect your prize or to pay for your kidnapped relative.
This is why it is vital to keep your parents updated with the newest scams. Visit Scams Singapore – a blog dedicated to identify and relay information about the existing frauds.
5. GIVE THEM ALLOWANCE
Protected by the law, senior citizens who are unable to sustain their lifestyle can apply to the court in order for their children to provide a monthly allowance. With the Maintenance of Parents Act, you have a responsibility to support your elderly parents. Instead of providing them with a certain percentage of your pay, it is good that you discussed their spending needs and goals first.