5 Tips for Helping to Manage Your Aging Parents' Money

There may come a time when it’s difficult or impossible for your parents to follow their budget, pay their bills and plan for their future financial needs. It’s hard to know when or how to step in. Here are some tips to help you have conversations and prepare to assist with managing your elderly parents’ money.

It may be beneficial to have a professional from outside the family review accounts and insurance coverage. Talk to Farm Bureau to learn how we can help.

1. Start the Conversation Early

If possible, talk to your parents about any financial tasks or issues they’re struggling with, or that they expect might be a challenge in the future. Ask them about their health care expenses and long-term care costs. Discuss whether they might need to modify their home or upgrade their vehicle in the future. 

Remember that these conversations might be hard for your parents, especially since you’re reversing the roles you’ve all held for most of your life. You don’t have to cover everything in one discussion. It’s okay to start with some general questions and revisit the conversation again as often as you need.

1. Get Organized

When you’re figuring out how to manage your parents’ money, you’ll want to understand where their money is, how to access it and where they keep their important documents.

That means knowing:

• What banking and investment accounts they have and how to access them
• What bills they have and how they pay them
• Their sources of income
• Where they keep estate planning documents and tax records

1. Start Small

If you’re not dealing with a crisis, talk to your parents about any financial challenges they’re facing. Maybe they need a support system for remembering to pay bills. They might want help reviewing their overall financial plan. Or they could be managing just fine and just need you to understand why they’ve made the decisions they’ve made. 

It can give them — and you — peace of mind to know you can make things easier for them and that they can stay independent for as long as possible.

1. Include Other Family Members and Loved Ones

You may be the one starting these conversations with your parents, but you don’t have to do everything by yourself. Include siblings, spouses and anyone else with a close relationship with your parents who may be able to help. 

In time, managing your parents’ finances could become a big job and it will be useful to have support. 

1. Safeguard Your Own Finances

It’s natural to want to help your parents, but you need to balance their needs with your financial future. If you have the means, you can cover some costs for them, but that shouldn’t mean sacrificing your own financial security. 

Get Support From a Professional

You don’t have to figure everything out on your own. Farm Bureau agents have helped many families with questions about helping their parents and ensuring they have the protection they need.