The majority of us are accustomed to turning to our parents for advice in times of need, but there may come a time when they will need your help with sorting out matters such as their living arrangements, healthcare and often, their finances.
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To assist adult children navigating the potentially complicated role reversal, personal finance expert Rubina Ahmed-Haq shared her top tips for helping aging parents manage their pocketbooks with CTV’s Your Morning on Monday.
How and when to approach:
Older parents can often run into financial turmoil in the aftermath of a “big life event,” according to Ahmed-Haq.
Some of those events could include downsizing to a smaller home, the death of a close friend or perhaps the most common example, the death of a spouse. The spouse may have been the one who managed the couple’s finances, paid the bills and planned a budget, Ahmed-Haq said.
If the spouse who is left behind never had to deal with those issues before, they may have some difficulty taking over all of the responsibilities, the personal finance expert explained.
That’s why Ahmed-Haq said it’s important for adult children to pay attention to the big life changes happening in their parents’ lives and recognize when they may be in a vulnerable situation.
When it comes to approaching aging parents about their finances, Ahmed-Haq recommends that adult children tread lightly to avoid offending them. She said they should let their parents know they’re there for them for whatever they need and to keep the lines of communication open so they can freely talk about their concerns.
Common issues:
Adult children should be aware of common problems seniors face such as, if they can afford to live in their home, if they’re prepared for an emergency expense or if they have enough saved for retirement, Ahmed-Haq said.
By understanding some the frequent dilemmas that seniors experience, their children will be better equipped to help them find solutions.
Financial literacy skills:
In the event that an aging parent’s children aren’t financially savvy themselves, Ahmed-Haq suggests tapping into a variety of resources for information. She said children can visit the websites for ABC Literacy Canada and the Financial Consumer Agency of Canada for easy-to-understand basics.
Families can also look into hiring a fee-only planner or employing the services of a financial adviser if they need extra assistance. Ahmed-Haq said adult children should ask their colleagues and close friends for recommendations on who to hire.
Advice for parents:
For parents turning to their children for financial advice, Ahmed-Haq said they should remember that their children don’t know everything and that they’re one of many resources. She recommends parents talk to their trusted friends, colleagues and all of their children before making any important financial decisions.
Ahmed-Haq also cautioned aging parents about the prevalence of elder abuse, in particular the exploitation of seniors’ finances. She said parents should rely on numerous sources for advice instead of depending solely on one person, even if they’re closely related.
