December 5, 2024 • 5 min
Article Contents
If your aging parent is having trouble managing their money, they’ll need your help. Here’s how to approach the subject with care.
Did your father forget to pay his utility bill? Does your mother have a big stack of unopened mail on her kitchen counter? Did someone send your uncle a check that never got cashed? These may be signs that your aging loved one needs some help managing their money.
Before you can do that, you’ll need to sit down and have an honest, detailed conversation with them about their day-to-day finances.
The idea of talking to an older parent or other relative about their finances might make you a bit nervous. Your loved one, after all, likely values their independence. But it’s best to start the conversation now, before there’s a crisis. If you’re thoughtful in your approach, you can get past the initial awkwardness and find solutions that will make everyone feel better.
First, choose a date and time when you can focus without distractions. Having your initial conversation in the midst of a family holiday celebration, for example, probably won’t be productive. Give your loved one – and any other family who will be involved – plenty of notice, so they arrive prepared.
Assure your older parent or relative that, while you want to help safeguard their ongoing financial security, they’re still in control of their money. Tell them that you care and want to work together to understand their finances so you can best support them.
Don’t take on too much right away. You won’t be able to organize an older person’s entire financial life in one conversation. Instead, plan to have several discussions over time.
Start by asking about their goals, which will help guide you moving forward. Be sure to take notes whenever you have chats about finances.
Ask where your loved one needs the most help and start there. Are they struggling to pay bills on time? It might make sense to set up automatic payments. Are they having trouble making investment decisions? Perhaps you can offer guidance, along with the help of their financial advisor.
Alert your older parent to scams. Advise them, for example, never to share their social security number or other personal information when someone they don’t know reaches out by phone or email.
It’s important to wrap your head around your loved one’s finances. So sit down with them to identify the various pieces of their financial life. Start by locating bank statements and tax returns, which can provide valuable information.
List sources of income such as:
List debts such as:
Collect related financial documents and set up a system – either digital or in physical folders – to keep things organized. That includes your loved one’s estate plan, which should list their financial power of attorney, the person who they’ve chosen to make financial decisions on their behalf if they become unable to do so.
Now with your loved one’s financial information in hand, you’re ready to craft a plan. Here are some steps to help get you started:
Over time, your loved one’s needs may change, so be prepared to pivot. If he or she develops dementia or Alzheimer’s, or otherwise becomes unable to make sound financial decisions, it’s likely time for you (and maybe other family members) to take on more responsibility.
If the person has a durable financial power of attorney, their trusted “agent” can begin making financial decisions for them. If they didn’t sign a durable power of attorney before they became incapacitated, a judge will name someone to manage their finances.
Their agent can take steps to prevent trouble, such as reducing the spending limit on the person’s credit cards. Your loved one’s financial advisor can provide further guidance.
Sources:
Elder Care Alliance, “How to Take Over Your Parent’s Finances,” published January 18, 2024
Kiplinger, “11 Tips for Talking to Your Aging Parents About Their Finances and Future Care,” published May 2, 2024
Nolo, “First Steps to Managing an Elder’s Finances,” published May 23, 2024
UDS Foundation, “Navigating the Process of Taking Over the Finances of Aging Parents,” published August 14, 2024
AARP, “10 Steps to Help You Manage a Loved One’s Money,” published August 12, 2024
Nolo, “The Durable Power of Attorney: Health Care and Finances,” published October 7, 2024
National Institute on Aging, “Managing Money Problems for People with Dementia,” accessed November 21, 2024
This article was created in accordance with the Patelco editorial policy.
Planning for retirement? Patelco’s guide will help you calculate your retirement income, expenses, and understand the types of plans and savings tools.
Want to learn about the most popular retirement accounts? Find out about 401(k)s, traditional IRAs, Roth IRAs, and SEP IRAs.
Social Security benefits are an important part of planning to retire. See a full retirement age chart, calculations and how taking it early affects the amount.
