Helping your Parents Plan Financially

If you have a parent or parents that are retired and beginning to advance into their elderly years, then you may know the challenges of helping them plan financially for that stage of life! Often times you’ll be faced with helping your parents make the most of their remaining retirement funds and adjusting their expenses accordingly! In addition, you may feel that it is best for your parents to downsize, and convincing them of the same can be a difficult task. Lastly, your parents may be faced with the reality that they or their friends may not be able to do certain things that they enjoy doing as they advance in age! These are just some of the difficult hurdles that you may face, but understanding how to approach them and navigate them is something that you’ll surely appreciate!

Budgets can and Should Change as we Age

As your parent's age, their budget should evolve to include certain expenses and expected expenses, and it’s important that you help you them understand this! One major expense that we can all expect as we age is increased medical expenses, as even the healthiest person will at some point feel the physical effects of aging! You’ll want to familiarize yourself with your parents’ insurance plans and how much the insurance company will cover for various medical expenses. In addition, you should ensure that a portion of money is reserved for any unexpected medical expenses that they may face—just like a rainy day fund for other unexpected expenses!

Downsizing May be a Good Option

In may seem like an obvious decision, but living in a smaller home means that there’s less space to worry about and keep up, which can certainly be appreciated in older age! However, convincing your parents that downsizing may be a good option can be a difficult conversation and one which they may not enjoy having. The important thing to do is emphasize with your parents, let them know that you understand that it will be difficult to move out of their current home. They may be reluctant to leave for a number of reasons, some of which may include: their attachment to the home—especially if they’ve lived in it for an extended period of time, their attachment to the area in which they live, or simply not wanting to go through the stress of moving. Whatever the reason may be, help them to understand that the difficult decision is worth the pay off—a less demanding life in a home that’s much easier to manage!

Their Activities may Change

As we age, we naturally may find certain tasks for difficult than they used to be, and this is no different for things that we enjoy doing! It can difficult to accept that something that you really enjoy is something that you may no longer be able to physically do, and this is a reality that your parents may have to face. While they may not always be able to continue to be as active as they once were, help them to find new hobbies or activities that they can take part in and enjoy. There are a number of programs and activities offered by local rec centers for senior citizens, so why not start by looking there? After all, if you find something for your parents to do that they enjoy, they won’t spend a lot of time thinking about what they miss doing!

Contact Carolina Money Minders today for more tips on how to financially plan with your parents.