It may seem like yesterday that your parents were paying your allowance and helping you figure out student loans. Now, you may need to consider taking care of their finances.

As the number of Americans over 65 reaches record levels, many adult children are finding that parents or other seniors close to them need a hand with managing their finances. Assuming the role of responsibility can be an awkward role reversal, especially when it means talking about money. A survey by senior care provider Home Instead found that the topic of finances is one of the least talked-about subjects between adults and their aging parents.
finances, living preferences, and driving are the topics that adults struggle the most to discuss with their aging parents. But it can be one of the most important. Here’s how you can help your aging parents with their finances.

Still, it’s important to make sure your parents’ finances are in good order so their last years can be worry-free. Here’s how you can help.

Talking with aging parents about finances

Managing a parent’s or caregiver’s finances begins with an honest conversation and clear communication in both directions. Getting your parents’ finances on track begins with an honest conversation. According to Home Instead, you want to start bringing up complicated late-life topics by the time you turn 40 or they turn 70 – known as the 40/70 rule.

Even if your loved ones are independent and stable (both financially and medically), it’s a good idea to check in about the following:

• Sources of income, including Social Security, pensions, and investments
• Any debts they need to pay off, along with other personal finance matters.
• Issues they have with meeting expenses, in case they would benefit from financial management programs for seniors.
• Plans for big financial emergencies, such as the need for long-term care.

If they say everything is under control, things can change quickly for money managers of any age, so always keep an eye out for warning signs like past due bills, stacks of unopened mail, and uncharacteristic (sometimes large) purchases.

3 Ways to help seniors manage their money

Think your parents need extra support? Here are a few things you can do:

• Provide a hand with day-to-day management: Simplify their finances by putting bills on autopay and helping them go paperless. You can also set up banking alerts in case of activity that needs immediate attention, like a low account balance. You can even help them manage important matters like Social Security income or quarterly tax filings to declare pension income.
• Create a power of attorney: A financial power of attorney will permit you to access your parents’ bank accounts, if necessary. This needs to be planned in advance of any potential issues, so it’s better to bring this up sooner rather than later.
• Watch for fraud: Elder financial abuse and fraud costs older Americans between $2.9 billion and $36.5 billion a year. These losses can include health insurance or funeral home scams, fake investment schemes, and other types of senior fraud. Knowing how to identify fraud can help you educate and protect the older adults in your life.

Discussing end-of-life money management

In your parents’ and caregivers’ later years, many personal financial responsibilities, such as mortgages and college funds, may be behind them. But they still need to plan for end-of-life costs, such as funeral and burial expenses.

Final expense insurance is designed to help cover end-of-life expenses and bring peace of mind. Smaller death benefits, usually $40,000 or less, and shorter term lengths make it an affordable choice for extra protection, and many policies don’t require a medical exam, for quick approval.

It can be a tough conversation to initiate with loved ones. To get started with end-of-life conversations, tell them about your own plans. Explain the steps you’ve taken, like getting life insurance, granting power of attorney, or writing your will. Ask your parents about their life insurance and whether they have coverage in place. If they already have a policy, make sure you know how to access it, just in case.

The right life insurance policy is one that provides financial protection and peace of mind for you and your loved ones. Talk to one of our agents to explore your options, or get started with a quote.
Fidelity Life is here to support you and your parents as you work together to put later-life protection in place. Get in touch with us to talk to an agent today.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.