One of the key ways to know you’re finally a card-carrying adult is the ability to effectively manage your own finances. For most people, these skills are honed and improved as they age and learn about investments, savings, and create their own financial portfolios. It’s safe to say that the average adult doesn’t need or ask for financial advice from relatives, and certainly not kids whom they have taught about finances.
However, there may come a time when you, as a senior person, may need assistance with the skills you were once so proud of. In some cases, it may even be necessary to relinquish management of your finances to your kids. This post takes a closer look at the signs that will let you know you may need to consider this next step.
You’re Experiencing Memory Lapses
As a person who is getting on in years, you may be proud of the fact that you never missed a due date for your bills and transfers. You may also have a personalised reminder system in place and even scheduled automated payments.
Despite this, the first sign that you may need some assistance with your finances is a failing memory that leads to you forgetting due dates, experiencing confusion about balances, and even misplacing money. Keep in mind that forgetting you have a policy may lead to it lapsing if payment is missed.
Your Partner Who Handled the Finances Has Passed On
If you’ve always relied on a partner or spouse to keep the finances in order, it may be challenging to deal with this on your own when they pass on. This may leave you feeling overwhelmed.
Avoid the stress of learning new processes and habits by handing the reins over to someone who may already be familiar with most of your financial habits and requirements. This will ensure that all your financial aspects go on as normal.
Your Financial Patterns are Changing
Another clear indication that it may be time to ask for assistance is if you notice that your usual financial patterns are changing. This often happens in the form of unpaid bills, overdue notices, disconnected services, or sudden (and unnecessary) spending.
In addition to this, if you’ve found yourself tempted to believe in potential scams such as sweepstakes, fake charities, or investment schemes, it may be time to put a trusted child in charge of your finances. Doing this ensures that potential fraudsters aren’t able to con you out of your hard-earned savings and investments. Your loved one will then be able to assess the credibility of any charity or investment you may want to contribute to.
You’re Planning to Move to a Retirement Home
Some seniors prefer to live on their own or in their own homes for as long as possible. However, this isn’t always a viable option. Issues with mobility or other health concerns may make it more convenient to move into a nursing home or an assisted living facility.
If your retirement planning involves a drastic change in your living conditions, it may be a good idea to place your finances in the hands of a trusted relative. This will ensure that your money is safeguarded and available when you need it.
You’re Opting to Rent a Smaller Space
If moving into a nursing home or retirement village isn’t on your agenda, then you may simply be looking to downsize your large family home. This sometimes means renting a smaller, more manageable space. If this is the case, then you need to invest in the renters insurance that is designed for seniors.
For the most part, this type of insurance is designed to protect your belongings, pay additional living expenses, and even cover liability. This means that your valuable heirlooms and meaningful possessions will be protected when you’re moving into a new rented space.
Some of the more common items that a quality insurer, such as Lemonade, can assist you with include the following:
- Personal items
- Heirlooms and antiques
- Appliances and kitchen items
- Important legal documents
- Photo albums and keepsakes
- Mobility devices
- Medical equipment
- Electronics and computers
- Artworks and collectibles
Another huge benefit of investing in renters' insurance is the personal liability cover. This ensures that medical bills are covered if a guest gets injured in your home. Any repairs of major issues that make your home unlivable will also be covered.
Final Thoughts
The thought of relinquishing the management of your finances to a trusted child or relative doesn’t have to be daunting. Having someone else manage your finances and ensure that your bills, policies, and investments are paid timeously will give you the peace of mind that you can enjoy your senior years without the hassle of trying to remember every little expense.