If there’s one subject that tends to get people’s backs up, it’s probably finance. Some people are extremely private when it comes to discussing their finances, especially with their children. Still, if your parents are getting on in years, there are some important reasons to have a talk about finances with them.
Make Sure They Can Cover Their Expenses
Expenses are just a fact of life. They don’t go away just because you get older or retire. Sometimes they increase. Medical expenses can be especially prone to this. One of the things you should talk about during your discussions about finances is whether or not they’re able to cover their expenses. Discuss some of the options and resources for seniors they can access if they need some extra help financially. And if they need the nearest ATM machine, they can explore ATM locations.
Help Them with Estate Planning
Have you ever talked to your parents about how they tend to settle their estate? It’s another conversation that may be uncomfortable and difficult to have, but effective estate planning is essential to ensuring that everything goes as smoothly as possible after your parents pass away. Depending on the laws of the state your parents live in, careful estate planning could allow their will to bypass probate. Probate can take several months to go through entirely. That said, the probate process effectively closes out any outstanding debts, which can be highly beneficial.
Prevent Financial Abuse
Elder financial abuse is disturbingly common. There are a few factors that make seniors vulnerable to financial abuse. One of the things you can do to help protect them is to have an open dialogue with them about their finances. Talk to them about things like their outings, who they see, what they talk about, and how they’re spending their money. All of these things can (and should) be a natural part of conversations you have that keep you involved in one another’s lives, but they can also help you spot red flags that might indicate that someone is taking advantage of them.
Having parents that are getting older means facing a few uncomfortable conversations, not the least of which is about their finances. Don’t let the fact that the conversations are difficult or uncomfortable stop you from having them though. These conversations can make a huge difference in the life your parents live in their later years, often for the better. It’s an act of love that only you as a child can perform for them.
Check out this article on how buying a home can affect your family finances!
