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5 Crucial Financial Planning Suggestions for the Elderly

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Everyone wants to enjoy their retirement years. However, many seniors face money issues at some point. Here are five financial planning strategies that help seniors make the most out of their golden years.

1. Create a Budget

The first thing you and your aging loved one should do is create a comprehensive budget. You may not be able to help with your parent’s finances unless you know exactly where the money is going. The budget must contain all sources of income and every expense incurred. In addition to necessities like food and utilities, you also need to write down how much your loved one spends on entertainment and other non-necessities.

Preparing a budget for a parent can be a challenging task, especially if you have other important duties to tend to. Families who need additional assistance caring for an elderly loved one should consider hiring a professional caregiver. Seniors and their families trust Home Care Assistance Lakewood to provide high-quality in-home care on an as-needed basis. Our caregivers take pride in helping seniors remain healthy while promoting their quality of life.

2. Set Realistic Financial Goals

When creating a budget for your loved one, set realistic financial goals. If your parent doesn’t have an emergency fund, the first goal should be saving up a little bit of money. Sudden expenses may pop up, and your loved one needs to be able to cover them without using a credit card. Having a few thousand dollars in a savings account can give your loved one peace of mind.

3. Start Reducing Monthly Expense

Many seniors pay for dozens of services, subscriptions, or programs they never use. Once every month or two, take a close look at your loved one’s bank statement to see where the money is going. You can then cancel any services or subscriptions he or she no longer uses.

4. Be on the Lookout for Financial Fraud

Older adults are often targeted by scammers. Teaching your loved one about some of the most common scams can drastically reduce the risk. You should also add your loved one’s phone number to the Do Not Call Registry and place a “No Soliciting” sign in the front yard.

Many older adults require more than just financial security to enjoy a happy and healthy life. If your elderly loved one needs help maintaining a high quality of life while aging in place, reach out to Home Care Assistance, a trusted provider of Lakewood elder care. Our caregivers provide transportation to and from medical appointments and social events, nutritious meal preparation, assistance with daily exercise, and help with everyday tasks like bathing, grooming, and light housekeeping.

5. Prepare for Possible Cognitive Decline

Cognitive decline is a natural part of the aging process, and getting ready for those changes could help your loved one avoid some major financial issues. At the very least, you should consider creating a power of attorney document for your parent. Setting up a joint account might seem like an easier option, but you could be responsible for paying off your loved one’s debts when he or she passes away if your name is attached to the account.

Planning a parent’s finances can be a difficult task for an overworked caregiver. Families who find it difficult to care for their aging loved ones without assistance can benefit greatly from professional respite care. Lakewood, CO, family caregivers who need a break from their caregiving duties can turn to Home Care Assistance. Using our proprietary Balanced Care Method, our respite caregivers can encourage your loved one to eat well, exercise regularly, get plenty of mental and social stimulation, and focus on other lifestyle factors that promote longevity. To learn about our proprietary in-home care methods, call us at (303) 987-5992 today.