Many loved ones are at an increased risk of being affected by financial scams, especially those that prey on their tendency to think people in their golden age are more trustworthy than younger folks. There are many ways you can help with seniors’ finances, but keep in mind that your relationship with them will play a huge role in how effective your advice is. If they trust you, they’ll be more likely to listen to you. Here are five ways you can help seniors manage their finances.
Automate Their Finances
As we age, our risk of mismanaging our finances increases. If you’re a family member or friend of an older person who lives alone, consider helping them with their finances. The Internet is awash in automated systems that help people manage their money and organize their accounts—as well as keep track of all those checks they write. These programs can save loved ones time and stress by automatically balancing accounts, paying bills online, and tracking spending.
Identify Scams Or Fraud
If your loved one is spending a lot of time on social media, don’t just assume that they’re enjoying themselves. It may be a sign that they’re falling prey to an online scam. There are many different types of scams and frauds going around, and many are particularly susceptible to them because they tend to be trusting and often ignore their better judgment. Once you know about a scam, it can help you identify whether or not your loved one has been affected by it. If you see suspicious charges on their account or changes in financial behavior, talk with them about what might be going on.
Locate Important Financial Documents
Before you can help with your loved one’s finances, it’s important to make sure you know where all their important documents are located. These documents will be scattered across multiple locations in many cases, such as a home, a rental property, and a bank safe deposit box. One of your first steps should be to ensure that you have an updated list of their financial accounts, investments, and other assets. Many family members only have one or two copies of these lists—which means it’s up to you to track down everything before moving forward. Once you locate all of these documents, keep them in a secure location so that they don’t get lost or misplaced again.
Access Their Safe-Deposit Box
Even if your loved one doesn’t have an immediate need for certain items in their safe deposit box, it may be worth periodically checking it to see if any of these types of documents are being stored there. Take them out and start organizing, scanning, or shredding. Here are some examples of things you might find: medical records, important legal documents (i.e., marriage certificate), investment records, and tax returns that haven’t been filed yet. Make sure you get permission before getting started on any project that involves these types of documents!
Update Important End-Of-Life Legal Documents
When most people think about estate planning, they think about wills. But in fact, most deaths occur under hospice care or when an individual is receiving medical care in a hospital. Because both of these situations are typically managed by healthcare professionals and family members who may not know about an individual’s wishes for end-of-life decisions, it’s important to be sure that your healthcare directive (living will) and durable power of attorney are up to date. This way, you can ensure that your final wishes are carried out even if no one has access to any legal documents.
