A Reuters study looked at 85-year-olds who had no trouble managing their finances – seven in 10 ended up developing problems in the next decade. We can infer from the results that the majority of seniors, when they get to a certain age, have difficulty managing their finances. Even if they are doing okay at the moment, they will need external help one day.
If your senior loved one is in their 60s or 70s and otherwise healthy, you should be able to rest easy – chances are they will be capable of managing their finances independently for a while yet. Of course, this won’t apply to everyone, whatever their age. It doesn’t hurt to check. Catching it early will help you minimize the fallout.
Today, The Coffey Group offers a handful of common, prominent warning signs your senior loved one can’t manage their finances independently anymore. We also offer suggestions on what to do next.
Warning Signs They Can’t Manage Their Finances Anymore
Here are some signs your senior loved one can no longer manage their finances:
- Difficulty with ADLs: Acts of daily living (ADLs), according to ElderLawNet, include preparing food, taking medication, reading the newspaper, operating gadgets, and going to the bathroom unassisted. If they’re failing at one or more, it’s a surefire sign they need help.
- Unpaid bills: Have you noticed an increase in the number of unpaid bills? Are creditors calling frequently? Check for repeat calls, unpaid invoices, and unopened mails.
- Debt and irregular spending: Look for credit card debt and surprise big purchases. Did your loved one splurge on a fancy new TV recently that they were in no position to buy? A change in their typical spending pattern may point to a problem.
- Complaints about money: If your loved one is complaining about money and how it’s all becoming too complicated these days, it’s a cry for help.
- Being scammed: Declining financial ability may leave your loved one open to being taken in by scammers and fraudsters. If they’ve lost money to a scam, it could point to a decline in mental acuity.
Difficulty with managing money may point to a bigger problem – such as early dementia or Lupus. Go to a qualified expert for an accurate diagnosis.
What You Can Do Next
Do you believe your loved one needs help? You may need to step in and actively help them out:
- Have a Family Conversation
It’s always a good idea to start with a conversation. Many seniors are fiercely independent and resent being helped. Try to get everyone invested involved (like your family), determine what needs to be done, and assign (or volunteer) responsibilities. Part of the conversation may include moving your senior loved one to a skilled nursing facility, which means you or another family member should start the search. Fortunately, with more than 20 nursing homes, there are plenty of choices in the Sarasota area. Go online and check certain aspects of each facility, such as pricing, payment options, and the level of care.
- Take Over Basic Financial Tasks
You could do some financial tasks for your senior loved one – think, paying their phone bills, insurance, and similar. Seeing as everything is digital these days, you could do it remotely. Take an inventory of financial and legal documents before you take this on. You could look into getting power of attorney for smoother decision-making.
- Help Them Tie Up Loose Ends
Your loved one may have financial stakes (or obligations) – think debts, investments, or a business of their own. You may need to settle matters. For example, if they own a business, they’re likely no longer capable of running it properly. You may need to sell it. Get a professional valuation for an objective perspective and realistic estimate of the business’s worth for the best results. A professional will cover all business assets, including real estate and inventory.
- Automate
Many money-related tasks can be automated these days. For example, using your loved one’s checking account, mutual fund, or brokerage, you can auto-pay their mortgage, credit card, and utility bills. It will reduce your energy and time investment (although you should still keep an eye on what’s going out).
- Get Help
You can’t (and shouldn’t have to) do everything alone. Ask for help from family and friends for help with tasks. Also, you can seek professional help if and when it becomes necessary.
Conclusion
Helping your loved one will, of course, go beyond helping them with their money. You should also look into their health, wellbeing, and future life. You will have to make other calls in the future – such as assisted living or full-time care. Don’t forget to look after yourself while you’re at it!
Find out why The Coffey Group has consistently been in the top 1% for overall sales volume for Sarasota and Manatee County. Team up with Brandy Coffey today by calling 941.404.4737!
