Money Management Tips for Family Caregivers
By Tom Cleary
Have you heard of the “sandwich generation”? No, the term does not reference elementary-age kids who survive on peanut butter and jelly sandwiches. It is actually a phrase given to describe the many Baby Boomers who are helping to care for their children and grandchildren while also caring for their parents. With needs on both sides, these individuals are sandwiched in between. As parents age and require more attention, many Boomers are finding themselves in the role of family caregiver. Following are some tips for keeping the financial responsibilities of this role more manageable.
Be Proactive
Planning ahead always helps to make the future easier. It may be hard to imagine that your parents will not always be able to care for themselves, but the reality is that it will happen eventually. It is a good idea to start having conversations regarding their future and their finances while they are still healthy and engaged. Find out what they want the days ahead to look like. Establish the fact that you are on the same page. In these ways, you can lay the groundwork for your future relationship before it becomes a touchy subject.
Be Organized
As you talk proactively with your aging parents, you can also be compiling relevant documents that will be useful in the future. Some relevant documents may include wills, investment statements, titles, deeds, etc. These important documents should all be gathered and placed in one easy-to-find location. Everyone that might need to access these documents should be informed of their location. In addition, notes taken and agreements made during proactive conversations can be kept as well. Having a written record of decisions made can help avoid future disagreements and conflicting memories. While these documents are not legally binding, they may help all concerned parties to feel more comfortable with decisions.
Be Legal
Getting documents organized may alert you to the fact that some legal paperwork is needed. As your parents age and you take on more authority, you’ll need to have the proper paperwork. You will be responsible for making more and more decisions regarding not just your parents’ finances but also their health. To comply with current laws and avoid delay of critical decisions, you should talk with a trusted lawyer and make sure that you have all the proper documentation. This could include wills, power of attorney documents, living wills, and others. Having this ready in advance will make emergency situations easier to handle.
Be Safe
Unfortunately, it is well-known that older people tend to be vulnerable to scams. Criminals prey on the kindness that the elderly often display. This can be exacerbated by confusion or misinformation that tends to be more common among the elderly. To protect your parents from fraud or outright theft, you should stay involved. Talk with your parents often and encourage them to share about their new expenditures. Sharing access to your parents’ accounts gives you the ability to monitor what may be going out. At some point, you may need to take over financial tasks for their protection.
Be Informed
While you may feel like you are going through this alone, the fact is that millions find (or have found) themselves in similar circumstances. There are a lot of resources out there to help you find the best way through. You can start by talking with your friends about experiences they may have had. Beyond just your own circle, you can find a lot of information online. Benefits Checkup can help you find out what benefits your family member may be eligible for. More general helpful tips for you as a caregiver can be found at websites for organizations such as Caregiver Action Network. The Illinois Department of Aging provides additional links to helpful sites.
At Federated Bank, we know many neighbors and friends who are living in the “sandwich generation.” Some of our flexible and easy-to-use apps may be able to help you as you make this transition with your loved ones. Stop by and talk with us about how we can make the financial aspects easier. We look forward to helping you in any way we can!
