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How to Assist an Older Loved One Who Needs Help With Their Finances

As people age, they may deal with various financial setbacks or fall into poor habits with money. These situations can put them in danger if the situation escalates, so it’s important to look out for several signs. This guide from Capex CPA can help you determine if your loved one needs help.

Failure to Pay Their Bills 

Your loved one may have unpaid bills they should be able to regularly afford. Check with them to make sure they’ve paid necessities, such as their utility bills, and other recurring expenses, such as groceries or health care. If bills haven’t been paid in some time or important mail has been left unopened, your loved one may be forgetting these obligations entirely.

They're Victimized by Outside Influences 

Unfortunately, as Take Care notes, senior citizens are especially vulnerable to scams and exploitation. Discuss several potential scams with them, such as phone or email-based scams, so they know not to trust strangers. Also, review their bank records to make sure they haven’t made any large transfers or made strange purchases far from home. Be watchful of people in their environment, too, because employees, such as cleaning staff or home health aides, may try to steal from your loved one.

They Exhibit Cognitive Problems

If your loved one can’t seem to pay anything on time or seems to forget entirely, they may have a mental health condition. Dementia impairs a person’s ability to remember key events or follow daily routines, and if their cognitive ability is declining, it’s easy for your loved one to forget financial obligations as well as basic self-care needs.

Addiction

Psychology Today points out that many older people are particularly susceptible to substance abuse and addiction-related problems because they may deal with chronic pain, and they’re likely to be on prescription medications that may be addictive. Also, some seniors turn to substances to deal with depression, anxiety, and general unease related to getting older. Talk with your loved one about it, and if you or others suspect addiction, consider sending them to a rehabilitation program.

They Lack Sufficient Financial Resources

While there are many reasons a senior citizen may not be managing their money well, it’s also possible that they simply don’t have enough income to cover all their recurring needs. You may be able to improve your loved one’s finances by helping them relocate if they become overwhelmed with rent, bills, medical expenses, or other costs. This includes hiring movers.

Downsizing Their Home

Downsizing to a smaller, more manageable residence may be the best thing for your loved one. Before selling their home, assess the current real estate market and determine how much they’ll make when they sell their home. If you’re currently in a buyer’s market, it may be worth holding on to the home for a while. To save money on the new home, it may be tempting to purchase a home “as-is”, since they typically are available at a relatively low price. Use caution if exploring this approach. Be sure to have a thorough inspection of the house and full understanding of its issues before going through with any purchase.

Adding Helpful Features

A popular feature that homebuyers look for a place with smart home technology. If your senior loved one’s home has technology like a Ring doorbell or security cameras linked to devices like smartphones, check to make sure everything is working correctly. If you need to troubleshoot issues with various devices, you can go online and read up on instructional how-tos and tips from experts.

Selling a Business

Sometimes older people own businesses that they may or may not be active in anymore. If the business is becoming more of a burden than a benefit, you may want to help them sell it. Have an expert evaluate the business and its assets to determine its true value and avoid underselling.

You Can Help Prevent Serious Financial Struggles

By keeping an eye on your older family members and friends, you can help prevent them from becoming victims of fraud or theft. Help them manage ongoing expenses, downsize their residence, sell their business, and be mindful that mental health issues or substance abuse are possibilities.

For Chartered Professional Accountants serving the needs of small business owners, visit Capex CPA today!