Caring for a parent or loved one involves more than just providing physical and emotional support. According to a Merill Investment 2020 study, approximately nine in ten senior caregivers also hold some financial caregiving responsibilities. Financial care for an elderly loved ones is an often overlooked but essential aspect of caring for an aging parent, and it can be challenging for both new and veteran caregivers to figure out. 

Whether you find yourself in this role suddenly due to a loved one’s health changes or gradually as you’ve been noticing more unopened bills on your parent’s counter, helping elderly with finances can feel overwhelming. To assist you in navigating this journey, we’ve developed a 13-step plan of financial tips for caregivers to provide the tools needed to strategize and execute a senior money management plan. 

13 steps of financial care for the elderly 

Managing someone else’s finances – especially a loved one’s – is a nuanced and complicated experience. Senior money management demands a certain level of financial literacy to ensure your loved one has adequate funds to carry them through their golden years. But financial care for the elderly isn’t just about the money. There can also be complex emotional and relational challenges when handling finances for someone else. 

This plan aims to guide you through your loved one’s finances with clarity, consideration, and compassion, regardless of your current financial situation or knowledge. 

1. Communicate with your loved one. 

Before taking on any senior money management roles, have an open and honest discussion with your parent about their financial situation.

• Explain why you’d like a greater role in their senior finances without making them feel embarrassed or ashamed.

• Discuss their financial goals, preferences, and recent changes to their senior money management plan.
• Encourage their involvement in financial decisions. 
• Create an open line of communication where both your and their opinions are considered. 

It’s important to acknowledge the emotional challenges of managing someone else’s finances, especially for elderly loved ones. While helping with their financial affairs, your parent might feel they’re losing their independence or control. 

Therefore, it’s crucial to approach these discussions with compassion, care, and a listening ear. Ensuring your loved one feels heard and involved in the decision-making process will alleviate some of the emotional burdens associated with financial care for the elderly.  

2. Understand your loved one’s money landscape. 

Gathering essential information about your loved one’s fiscal situation is the foundation for stress-free financial care for the elderly.

• Categorize their senior finances into positive cash flow (income sources, assets, government assistance) and negative cash flow (expenses, debts, taxes). 
• Collect and organize all financial documents, like bank statements, insurance policies, investment portfolios, and legal documents like wills and powers of attorney. Also, make sure these documents are relevant and up-to-date. 

3. Sort out the bills. 

First, address piled-up bills and outstanding notices. Then, create a plan to track bills better moving forward. This budget should include everything from significant expenses like utilities, mortgages, and healthcare to smaller costs like monthly Netflix subscriptions, GoGoGrandparent membership, and takeout. Don’t forget to budget for irregular expenses that occur annually or quarterly, like taxes, insurance premiums, or yearly subscriptions. 

Depending on your involvement in their senior money management, you may want to request access to their online billing systems, like utilities and phone bills. This will help you track the bills remotely and ensure on-time payments. 

4. Get acquainted with their income sources.  

One of the most critical aspects of financial care for the elderly is ensuring they have enough income for their lifestyle. Even if your parent is retired, they likely have some income like investments, pensions, Social Security, insurance payouts, or part-time income sources. Get acquainted with their income and determine other relevant income sources if needed. 

Financial tips for caregivers: become a trusted contact

Some parents worry about their children having access to their income for various reasons. To ease these concerns while effectively handling their senior finances, you can be added as a “trusted contact” to your parent’s bank, brokerage, and financial accounts. This may be done through the bank directly or with a power of attorney. 

As a trusted contact, you can access their information but cannot withdraw or move money. The bank can send you alerts about irregular activity and monthly statements for senior money management, but your parent still controls the usage of the money. 

Not all bank employees are familiar with the intricacies of financial care for the elderly, so you may want to chat directly with a branch manager to see if these types of accounts are right for your situation. 

5. Manage health insurance coverage. 

One of our most important financial tips for caregivers is to learn about Medicare. Medical expenses are some of the most significant expenditures in senior finances, so having a deep understanding of your loved one’s health insurance plan can help track and minimize expensive, cumulative bills. 

• Keep track of all medical bills and claims to identify any discrepancies. Don’t trust the insurance company to handle it for you.
• Before selecting a doctor, make sure their practice is covered by Medicare or your parent’s specific health care plan to avoid paying out of pocket. 

6. Anticipate and manage taxes. 

Don’t let taxes surprise you (or your bank account) in the spring. Get ahead of tax season by calculating taxes early, setting aside finances to pay for taxes, and learning about tax credits and deductions for seniors.

Financial care for the elderly can get complicated due to pensions, tax-deferred investments, retirement plans, senior-specific deductions, property and income taxes, and more. Consider consulting with a tax professional to ensure you have the most advantageous tax filings for your parent’s senior money management. 

7. Create a comprehensive budget. 

Now that you understand more about senior finances and your loved one’s situation, it’s time to create their budget. A detailed budget should include all income sources and regular expenses, categorized by week, month, and year. Prioritize essential expenses first, like housing, healthcare, utilities, transportation, and food, but don’t forget about the “little” expenses like personal care, pet care, and discretionary spending. 

You might have to make tough decisions regarding your parent’s senior finances. Consider which services you should cancel or rearrange to help your loved one stay on track with their budget. For example, your parent may be paying for a streaming service they don’t use, or they’re overspending on an old car they don’t drive.  

Consider alternative transportation

Cars are one of the most expensive parts of a senior’s weekly budget. The costs quickly add up between registration, insurance, car maintenance, and gas prices. Many seniors are using alternative transportation options to minimize costs and enhance safety and convenience. 

GoGoRides offers freedom of movement without the stress of a car. Your parent can travel where they want, when they want, by just calling our friendly operators and scheduling a ride with a vetted driver.

And with our Family Features option, you can monitor your parent’s ride from start to finish and pay for services through the app. That means you get peace of mind while still giving your loved one autonomy and independence.  

Not sure how to talk to your loved one about giving up the car? Check out this resource for tips on how to have the conversation. 

8. Plan for the future. 

Senior money management should include both short-term budgeting and long-term financial care for the elderly.

• Figure out creative ways to stretch their income to last ten, twenty, or thirty more years. 
• Discuss potential future financial arrangements for assisted living or nursing care facilities.
• If appropriate, you may want to facilitate a meeting with a lawyer to discuss managing assets and transferring wealth, such as wills and powers of attorney. 

9. Automate and streamline. 

Set up automatic payments for regular bills. This ensures all bills are paid on time and in full, helping to mitigate the stress of having to remember to manage senior finances weekly. 

Also, set up automatic direct deposits for income like dividends, pensions, and Social Security. This helps ensure your parent always has access to their money without delays or overdrafts. 

If you use GoGoGrandparent for transportation, deliveries, and home care services, you can pay for your parents’ services through our Family Features app, making on-time payments even easier. 

10. Implement safeguards. 

Unfortunately, seniors are often the victim of scammers. Scammers assume that senior money management is not handled effectively, and they see older adults as targets for exploitation and fraud.

That’s why financial care for elderly is so critical. Educate your loved one about potential scams, monitor their accounts for unusual activities, and work with their banks to implement safeguards for withdrawing large amounts of money. 

11. Don’t pay yourself. 

You’ll spend a lot of time and energy on financial care for elderly parents, but you shouldn’t pay yourself compensation from your loved one’s bank account unless you have a formal written agreement. Don’t use or borrow money from the accounts for personal purposes without first discussing it with your parent and getting the agreement in writing. Written agreements help avoid legal and relational problems in the future. 

12. Research financial services and aid. 

If your parent’s budget feels tight, consider seeking outside assistance. Many government and nonprofit agencies offer specific services for financial care for the elderly. Some examples include:  

• Free or low-cost financial and legal counseling from local nonprofits 
• Government programs and benefits for senior finances like Social Security, Medicaid, and Supplemental Security Income (SSI) 
• Services and bank accounts tailored for senior money management at banks and financial institutions  
• Free resources and educational materials from agencies like AARP, GoGoGrandparent’s blog, and more 
• Find more support with our article: What Services do Local Agencies Provide For Seniors? 

13. Seek professional guidance. 

Sometimes, senior money management is too much to handle on your own. Consult with financial advisors, accountants, and elder law attorneys for complex senior finances to ensure you’re making the best decisions for your loved one. Professionals will help ensure your parent’s wishes are carried out and their estate is managed according to their preferences.

14. Utilize technology for senior money management. 

Explore mobile apps and online tools to help simplify bill payments, budget tracking, and senior money management organizations. These tools can provide real-time insights into your loved one’s financial situation, making it easier to stay on top of expenses and income. Some recommended apps include:

• Mint, a budgeting app that syncs bank accounts, categorizes transactions, and offers customizable budget goals
• YNAB, an in-depth budget with real-time updates, goal tracking, and educational resources to improve senior money management literacy
• Pocketguard, which analyzes spending patterns and helps provide insights about discretionary spending
• GoodBudget, which utilizes the envelope budgeting system in a more technologically advanced way 
• Albert, a tool that combines budgeting with investment advice

15. Take care of yourself. 

Caring for a parent’s senior finances can be emotionally taxing. It’s common for caregivers to feel a whirlwind of emotions while stepping into this new, confusing role. 

It’s essential – for yourself and your parent – to prioritize self-care. Taking care of yourself will allow you to provide the best possible support for physical, emotional, and financial care for elderly parents. 

• Acknowledge the emotional challenges that may arise. Don’t feel guilty if you have a mixture of reactions to assuming senior money management responsibilities. 
• Seek support through friends, support groups, or professional counseling. 
• Set realistic expectations and boundaries with your parent. 
• Take regular breaks, especially if you are also a caregiver for your parent in other ways. 
• Incorporate stress-relief activities into your daily routine, such as exercise, hobbies, or mindfulness. 
• Utilize GoGoGrandparent as an extension of your care team to streamline your caregiving responsibilities. 

Financial tips for caregivers

Successful senior money management requires empathy, organization, and financial acumen. By adopting these financial tips for caregivers, you can more easily navigate the complexities of senior finances to guarantee your loved one’s financial wellbeing for the rest of their life. 

Helping the elderly with finances is just one of the many roles of a family caregiver. If you want to make caregiving easier and more streamlined, consider GoGoGrandparent as an extension of your care team. GoGo is an affordable way to access rides, grocery and meal delivery, prescription delivery, and home services. Learn more about GoGo’s services here to see how we support hundreds of thousands of caregivers and their loved ones every single day.