The Importance of Talking to Aging Parents about Finances

By Annette Bratcher, 8:00 am on

Your parents have worked hard their entire lives to provide for your family and to have financial stability after retirement. What would happen if they were to lose everything they’ve spent their entire lives trying to achieve? Talking to aging parents and creating a financial plan now can mean their happiness and safety in the future. Here are a few reasons why our experienced caregivers and Care Managers encourage adult children to have “the talk” with aging parents.

  1. To safeguard accounts against financial scams. The elderly is the most targeted demographic for financial scams as seniors and older adults are seen to be more trusting of others. Talk to your loved one about various financial scams, such as telemarketing or door-to-door sales cons, online phishing scams and Medicare fraud. This can help them to see if they are being identified as a target, avoiding the scam all together and maintaining their financial assets.
  2. To ensure parents’ wishes are carried out. Seniors and older adults are at a higher risk of age-related conditions such as dementia and Alzheimer’s. Adult children who take time to discuss future financial wishes with their loved ones early can enjoy peace of mind should a parent lose his or her ability to make rational decisions.
  3. To plan for long-term care. Your parents may be enjoying good health now, yet there’s no way to predict their wellbeing in the future. Talk to your loved ones about their savings, financial investments and assets, and how that money should be used should they be diagnosed with a health or medical condition. Would they prefer to remain in the comfort of home with in-home care in Denton County or is a retirement home a viable option?
  4. To gain peace of mind. No one likes to talk about death. However, the reality is that death is a natural part of the aging process. While the topic can be difficult to discuss, it’s important to talk to your loved one about what should be done in regards to their finances after they’ve passed, how to pay for funeral expenses and how their estate should be allocated. This can help give you and your parents invaluable peace of mind.

Adult children should definitely get around to having a talk about finances with their parents. This discussion might be uncomfortable because the topic is frequently tied to diminishing mental faculties or death, but those who go ahead with the talk will alleviate much of the stress that comes with handling a parent’s finances.