1. Start the Conversation

Start the conversation and approach the topic with care, highlighting that your goal is to support your parent, not take over. Ask if they have any concerns about managing their bills, expenses, or savings, and your efforts are to be involved to help avoid potential issues such as fraud.

2. Organize Important Documents

Help your parents gather and organize their financial documents. This includes:

• Financial account information
• Investment details
• Insurance policies
• Retirement benefits
• Wills and power of attorney documents

Having everything in one place will make it easier to review and manage their finances, especially in emergencies.

3. Set Up Online Banking and Automatic Payments

Online banking can be an effective way for you and your parents to monitor their finances. Assist them in setting up online accounts and explain how to check balances, pay bills, or transfer funds. If you are having trouble with setting up their account, call your credit union or bank and have them walk you through their steps. In addition, setting up automatic bill payments for recurring expenses can help ensure that they don’t miss due dates, and avoid late fees or penalties.

4. Review Their Budget and Expenses

Take time to go over your parents’ monthly expenses and compare them to their income. Are they managing to save money? Are there any areas where they’re overspending? You can help create a budget that ensures they live comfortably while planning for future needs.

5. Help Protect Them from Scams

Talk to your parents about the dangers of sharing personal or financial information with strangers, especially over the phone or via email. Consider reviewing their financial statements regularly to spot any suspicious activity. You might also help them enroll in fraud protection services for added security.

6. Consider Power of Attorney

If managing finances becomes too overwhelming for your parents, or if health issues arise, having a power of attorney in place allows someone they trust (such as yourself or another family member) to make financial decisions on their behalf. This creates a significant responsibility for you, so it’s important to discuss it thoroughly with them.

7. Plan for Long-Term Care

Helping your parents prepare for potential long-term care needs is an essential part of financial planning. Review their insurance policies to see if they have coverage for nursing care or home assistance, and if necessary, explore options for long-term care insurance.

8. Encourage Simplifying Finances

Over time, managing multiple accounts and investments can become difficult. Encourage your parents to consolidate their accounts where possible, making it easier for them (and you) to keep track of everything. This might also reduce confusion and the chance of missed payments or financial mistakes.

9. Involve a Professional

If your parents’ finances are complex, involving a financial advisor or estate planner may be helpful. These professionals can help you and your parents make informed decisions, ensure their investments align with their goals, and address any legal or tax issues that might arise.

10. Be Patient and Respectful

Above all, remember that your parents value their independence. Helping them with their finances should be a collaborative process, where they still feel in control of their decisions. Be patient, compassionate, and respectful throughout the process. Your role is to provide support, not to take away their autonomy.