Making a Financial Plan to Take Care of Your Aging Parent

Elder care is an unpleasant and sensitive topic for sure, but ignoring it could create a plethora of problems down the road. Namely, it is never a good thing to let your parents become a financial burden you cannot take on. Your parents have worked hard for their whole life and now it is time for you to return the favour. Here is how to secure their health and well-being and improve the quality of their life.

Angle of approach

Elder care does not come cheap and it can become a full-time commitment. Therefore, it is never too early to start planning for it. That way, you get a handle on what needs to be done and break it down into manageable bits. You also avoid being completely taken off guard by unforeseen events.

I know it is a rather difficult thing to do, but start by having an open conversation with your parents and other family members. Communicate your concerns loud and clear. Show patience and let everyone have a say in how to approach and address the pain points. Even if your parents do not take things the right way at first, they should understand it is in everyone’s best interest to talk it through.

Grasp the big picture

The next crucial step is to evaluate the current financial state. List all the expenses and compare them against the income. Do not overlook a single detail because small items add up quickly. Determine how independent your parents will be and how much you will have to contribute. Ideally, you want to steer clear of financial pitfalls like debt. Enlist the support of other family members if needed.

Note that you can streamline the whole process by employing personal finance and budgeting apps. They eliminate human error and save you a lot of precious time. Likewise, introduce your parents to online banking if necessary or handle it for them. They can receive reminders and alerts for due dates and avoid potential ramifications for missing them.

Sorting out healthcare

Furthermore, anticipate future costs of healthcare.

This is usually one of the biggest hurdles on the way to financial stability. Naturally, you do not want to skimp here, but to ensure the best medical support. To make it happen, take your time researching specialized resorts and facilities such as Mark Moran Vaucluse aged care. They are well-equipped and have trained staff working 24/7.

Moreover, they provide access to various amenities, such as gardens, restaurants, swimming pools, wellness rooms, etc. Leaving a family home is never easy, but it is a decision that can really benefit everyone at one point. Like it or not, hard choices can often be the right choices.

Get the financial house in order

Finally, you need to put a savings account in place.

Depending on need and resources, this can take the form of a 401k plan or individual retirement fund. Shared accounts may be a prudent option in case you want to have easier time monitoring and managing parents’ spending. Just bear in mind that you might need to obtain a legal permission to make decisions on their behalf.

Legal guardianship is a sound course of action here, especially when you have to take care of a parent with mental or physical issues that impede clear judgment. You basically gain the attorney privileges and are able to exercise court representation. On top of that, you control the access to financial accounts to prevent any surprises.

Cover all the bases

The older your parents get, the less they are capable of taking care of themselves. To face the change head-on, plan well ahead of time— come up with a well-developed roadmap for managing finances. Initiate an open conversation to make sure you are on the same page.

Assess the parents’ financial health and figure out how it is going to change in the future. See to it that you can cover all the expenses without going out of your way to do it. With enough dedication and commitment, you should be able to ward off stress, frustration, and financial headaches. Hope for the best, but prepare for the worst!

Tracey Clayton is a working mom of three girls, passionate about traveling, marketing and everything tech related. Her motto is: “Live the life you love; love the life you live.”