News & Advice

There will come a time in all of our lives when managing finances becomes a more difficult task. That’s why it’s important to start having conversations about finances with your aging parents as soon as possible. 

Though money may be a difficult or sensitive topic in your family, you’ll be glad you took the time to get prepared and get everyone on the same page. 

Here are some tips for assisting your aging parents with their finances. 

HAVE A CONVERSATION EARLY 

Let’s face it — finances can be a touchy subject. Some parents may be offended at the idea of you helping them manage their finances, or they might just find it an uncomfortable topic. 

However, it’s crucial to find out how your parents would want you to handle their finances if they faced major declines in health or memory. 

Coming to an agreement can make hard times in the future a little easier since you won’t all be left scrambling. If this conversation ends up evoking strong emotions in your parents, remind them that your bringing up money is coming from a place of love and support. 

BE RESPECTFUL AND COMMUNICATE OFTEN

Through all conversations about money, be respectful of your parents' wishes. If you have siblings, keep them in the loop or include them in conversations too. Let your parents know that your intention is to help, not override their desires.

Conversations about money can lead to topics like health care and estate planning, and it’s important to include other members of the family so everyone is aware of what’s going on. You should document your moves to help you stay organized and avoid misunderstandings with your parents and other family members.

ORGANIZE FINANCIAL AND LEGAL DOCUMENTS

As your parents age, it’s very important that you know where their financial and legal documents are. This includes collecting their account numbers, important contact information for their financial institutions, birth certificates, insurance policies, mortgage information, wills, stock and bond information, and anything else that’s relevant. Be sure that their personal information, like passwords and account numbers, is secure and that their paperwork is up to date. 

SIMPLIFY THEIR FINANCES WHEN POSSIBLE

You ultimately want to help make your parents’ lives easier. Not only does helping them simplify their finances benefit them, but it will also help you if you ever need to take over. This could look like setting up automatic payments for bills if it’s difficult for them to remember to pay them, for example. 

LOOK OUT FOR ELDER FINANCIAL ABUSE 

If someone in your aging parents life — family members, neighbors, caretakers — takes money without permission, doesn’t repay borrowed money, overcharges for services, or receives payment for a job that they don’t end up doing, that’s elder financial abuse or financial exploitation. 

Some warning signs of elder financial abuse to look out for include abrupt changes in bank accounts or wills and unexplained money transfers or withdrawals. This kind of abuse is important to look out for if your parents are living in nursing homes or assisted living.

If you spot financial abuse happening where there’s a threat or urgent risk, call 911. Otherwise, you can call the non-emergency number for your local police to file a report. Financial abuse can also be reported to Adult Protective Services and your local District Attorney’s office.

INVOLVE AN EXPERT 

If it’s time to gain access to your parents' accounts to help them manage paying bills or other expenses, don’t go it alone. Getting access to these accounts will take some planning ahead and some paperwork. Consulting with a power of attorney, fiduciary, financial planner, or other experts can give you peace of mind that you’re approaching this in the right way and without any unforeseen consequences. They can also help answer common questions for you if you become a caregiver for a parent.

INOVA CAN HELP 

You don’t have to figure out your parents' finances alone. At INOVA Federal, we’re always within reach to help you with everything financial. 

Stop in and see us at one of our convenient locations or visit us online to learn about becoming a member or what we offer specifically for older adults, like our Advantage 50 Checking available exclusively to members 50 and over.