What Can You Do When Your Parents Have Money Troubles?

Money is a sensitive topic for many families. Discussing the financial troubles of your parents can leave them in a vulnerable and fearful state, understandably so. Additionally, your parents may feel that their spending and saving decisions are theirs alone.

People are less transparent when it comes to their financial problems, and this makes things more complicated. Try to help your parents explore their options while maintaining your financial responsibilities to yourself and your family. Consider these tips.

#1: ASSESS THE SITUATION

Start by evaluating your parents’ current financial situation. Have an honest discussion with them about the issues that they are having or expecting. You can either help your parents in monetary or non-monetary support. The best approach will depend on where your parents are now and where they want to be in the future. Seeking professional help can help with the facilitation of the money conversations.

#2: HELP YOUR PARENTS DOWNSIZE

Whether your parents are living in a place that is no longer affordable or are planning to cut down on certain expenses, help them to downsize. Run the numbers on the possible housing options and determine how much they would save over time. The analysis should include their mortgage, moving costs, and other housing-related fees.

#3: ASK THEM TO MOVE IN

If your parents cannot afford to live independently anymore and you can take them in, you can consider asking them to move in. Assess their health and the other members of your household to determine whether they can live with you. Taking in your parents can have a significant impact on their finances as it will free them from rental payments and housing bills.

#4: CREATE THEIR REALISTIC BUDGET

Are your parents seeking ways to stretch their cash? Sit down together and draft a realistic budget that factors in their income and expenses every month. If their income is less than their expenses or if they are breaking even, look for areas where they can earn more or spend less. The goal is for them to live more comfortably.

#5: HELP WITH MAINTENANCE OR REPAIRS

Some financial needs are short-term. If your parents need help with home or car repairs, you can offer help for them occasionally.

#6: BOOST THEIR INCOME

Is your organization looking for part-timers? You can recommend it to your parents. Taking on a part-time job or working from home can help your parents bring in more money. Help strengthen their social ties and encourage them to try new things to achieve financial growth.

Image Credits: pixabay.com

Sources: 1 & 2

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How to manage money problems in a marriage?

a wedding couple dancing

Realistically speaking, financial issues are going to present itself at some point and time in a marriage. This is probably true even for the filthy rich. Dealing with them as a couple can either help you grow closer together or further apart.

But think of it as an opportunity to practice money management techniques to build a more robust and financially secure future.

With that said, do you find yourself yelling at each other when financial issues pop up? Are you looking for help?

Here are some ways to truly deal with money problems in a marriage.

#1: Know your partner’s credit score
credit score scale

Image Credits: NFCC.org

We have to put this upfront because a couple should lay this foundation ideally before marriage. But even for those who’ve recently tied the knot, it’s not too late. Let Steven Yoda, a partner with a divorce firm, tell you why.

Yoda mentioned that identifying your partner’s credit score can give you insight into their past financial decisions. Money is often a common source of stress in a marriage, so knowing your partner’s money-handling habits can go a long way.

But at this point, do you know what a credit score is?

According to the Credit Bureau Singapore, a credit score is “a number used by lenders as an indicator of how likely an individual is to repay his debts and the probability of going into default. It is an independent assessment of the individual’s risk as a credit applicant.”

Now that you’re aware of the definition, be mindful that your partner’s credit score will not affect your personal credit score. However, it can influence your credit access after marriage because the lender will consider both parties’ credit scores.

In short, a low credit score will lead to higher interest rates and fees on your credit card or loan. But if things happen to go astray…

#2: Don’t play the blame game
a couple arguing

Image Credits: The Telegraph

Even if you feel as though your partner is spending way too much on Starbucks, don’t play the blame game. That’s because there’s no end to it. Both should acknowledge the lack of finances to cover individual or family expenses as the root of the problem.

Just like any other bumps in your marriage, you should approach it as a team. Face the jarring issues together as a unit rather than dissolving into a blame game on who’s spending too much.

#3: Take the lead to communicate
a couple talking over coffee

Image Credits: unsplash.com

When you or your partner spots a potentially money-focused storm on the horizon, schedule a time to sit down and talk. This could range from anything from reduced work hours to the desire of changing jobs.

“To minimise and prevent those issues from becoming bigger problems in your relationship it is important to start with the simple act of having conversations about money,” highlighted Maggie Reyes, a marriage mentor and life coach.

The sooner you prepare yourself for financial issues, the more well-rounded your solution is likely to be too. Panic and stress are never good companions for handling money issues, and to counter it; you want to have a plan in place before it starts spiralling downwards.

#4: Get on the same page
a wedding couple's shoes

Image Credits: unsplash.com

“Most financial issues in marriage come down to one main factor: both partners have different core values about money,” a certified counsellor explained.

First thing’s first, you need to make sure that you and your partner are on the same page about money and its value. Most of us have different understandings of the importance of money, and it takes some effort to understand where the other party is coming from as two halves of a whole.

For instance, you might be okay dealing with a little debt, but your partner may not be comfortable at the idea of it. So, if they start to see the build-up, it can be their source of severe distress.

When both partners aren’t careful in dealing with the disparity in money perspectives, this issue may burst into other areas of the relationship. Whatever those differences in values may be, it’s essential to put one into another’s shoes and find a compromise.

#5: Stop the problem from travelling
a stressed woman drinking wine

Image Credits: unsplash.com

With consistent money problems, it’s easy to resent the other person and their spending habits. Perhaps you fear that they are hiding money from you and siphoning it into a secret account. Or, maybe they’ve got a personal credit card and are overspending without keeping you in the loop. 

You know what? Stop your paranoia in its tracks! The moment financial problems turn into trust issues; it will impact your marriage. Have faith in your partner if you want them to return the favour.

Final thoughts

Money, and lack of it, can make even the strongest couples weaken and crack from stress. If you approach finances with a level head and as a strong, loving duo, you can overcome those issues in time to come.

Nothing is too difficult to solve. Take heart!

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How To Help Your Family Financially

Admit it! Financial conversations can be awkward, but your relatives can save you in the future. Support them and your relationships with the help of these tips:

PROVIDING A LOAN

One of the most controversial yet clear-cut way to help a family member in need is by providing a loan. The loan is ideally short and straightforward. One must write the terms and conditions that both parties will sign into. This will help ensure a binding financial agreement. Other details that you should clarify include:

a. the total amount of the loan,
b. the installment conditions (e.g., monthly basis),
c. the interest rate calculation,
d. the payment deadlines, and
e. the legal action necessary to cease the payment.

CHIPPING IN AS A GROUP

Tackling a dilemma as a group will maximize your efforts and resources. Say your parents are asking you for an allowance. If your siblings are in a capable position to contribute their funds then, you must ask them. However, you must access whether they have a good relationship with your parents too.

Please involve your partners in the discussions as you do not want to create resentment between siblings and their spouses. If they cannot afford to loan money, they may suggest other ways to help (e.g., accompanying your parents during weekend errands).

EXTENDING AN OFFER

Providing a short-term loan can only last for a specific period of time. On the other hand, offering a means of living can go a long way! Consider hiring or recommending your relative to assist your company’s needs. The job can help him or her to earn money for paying bills or debts.

Image Credits: pixabay.com

Treat your relative like any other employee. Layout the job description as well as the task deadlines. Ensure that you will be able to deal with incomplete or poor quality of work.

GIVING NON-MONETARY ASSISTANCE

Some people may not be comfortable with the act of loaning money without the guarantee of getting payment. If you are unwilling to give cash to a family member, opt for giving non-monetary assistance such as gift certificates or gift cards. This way, you will have more control over what your money will be used for.

Image Credits: pixabay.com

No arguments there! 🙂

Sources: 1 & 2

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