Tips to Help Elderly Manage Money
In this instalment, I will be sharing some money-management tips for seniors to consider. Some older people need help to handle all of their financial affairs, while others only need help in certain areas. Perhaps these tips can help ease some of the stress of managing an elderly relative or friends’ money.
Decide if you need financial help from an expert, and then choose wisely. A financial advisor could help answer questions such as how quickly to take money from savings and how to invest in your later years.
Develop a spending plan. Having a plan for your money and limiting expenses is important. Consider new ways to cut costs and consider continuing to put some of your income into savings. This will help with budgeting for things like holiday gifts and mini breaks, and can help you avoid a large, sudden withdrawal from your investments.
Create a Joint Account. Your elderly parent or relative can add someone to a checking account as a joint account holder where you both can withdraw and deposit money and write cheques. It allows for some independence and control, and permits you to keep an eye on things, pay bills, and handle some (but not all) financial affairs.
Set up direct debits to pay your bills. This is often a cheaper way to pay bills and it also means you know all your essentials are covered.
Use credit cards cautiously. Accumulating debt can be costly and even small purchases can add up to big credit card bills. Before making purchases using a credit card, ask yourself if you can pay the balance in full when the statement arrives to avoid costly interest charges.
Make it easier to manage your money and pay the bills. If you’ve accumulated multiple bank and investment accounts and credit cards over the years, decide if you can close some you no longer use or need. This can reduce the number of accounts you have to manage. Also, for payments you are due to receive, including money from pensions or tax refunds, there are benefits to having them automatically deposited into a low-cost or no-cost checking or savings account using direct deposit.
We hope you find these money managing tips helpful.
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