Proper financial management is important at any age. Yet, as caretakers know, it can become much more difficult as one ages. For loved ones facing physical, mental, and cognitive challenges, managing money can be overwhelming. If you’ve noticed a senior struggling with finances, there are concrete steps you can take to help.
What Obstacles Prevent Seniors from Budgeting?
Budgeting is key to taking control of your finances. However, seniors can experience challenges that make it more difficult:
- Living on a Fixed Income: At the end of last year, the average social security check was less than $2,000. In some states, that amount cannot effectively cover the cost of living. If a senior is struggling to support themselves with a fixed income, they might think budgeting won’t help.
- Lacking Financial Knowledge: Lacking financial knowledge can make seniors uncomfortable seeking assistance.
- Physical or Cognitive Decline: Seniors with deteriorating eyesight might struggle to read numbers. Arthritis can make it difficult to sign checks. Alzheimer’s can lead to missed payments and more. Age-related decline is frustrating on any level, especially when trying to manage finances.
Why is it Hard for Caregivers to Help?
Seniors value their independence and autonomy. It can be difficult to relinquish control of their finances to anyone. If a senior doesn’t like your help with budgeting, it could be because they fear losing control. It’s important to remain sensitive and understanding. Put yourself in their shoes – How would you like to be treated? What kind of assistance would you like? How would you prefer someone to offer it? Empathy and compassion are essential in these situations.
If a senior hasn’t granted you access to their bank account or allowed you to discuss their finances with third parties, that’s another challenge. Without this information, you can’t build a budget. Starting a conversation with your senior is the first step. Have a discussion about how you or someone else can help with their finances.
How Can I Help a Senior Make and Follow a Budget?
You might experience obstacles, but it’s possible to set your loved one up successfully:
- Involve Them in the Process
It’s critical they participate in the process. If they’re cognitively able, include them when making decisions about their finances. Keep in mind: this is their money, and they get to choose how to spend it. Encourage a sense of ownership to help motivate them to stick to a plan.
- Find Ways to Stretch Their Dollar
If your senior is living on a fixed income, search for ways they can save money while making their income work for them. They may be eligible for financial assistance programs that help with health care, prescription drugs, food, housing, utilities, transportation, and more. If they can see how to make ends meet on a low income, they may be more willing to budget.
- Knowledge is Power
Planning a budget can be intimidating, especially if you’ve never planned one before. Education is empowering, and sharing your tips with your loved one can alleviate their anxiety about managing their expenses.
- Remain Sensitive and Empathetic
For those with dementia, managing finances can be especially difficult, even years before their diagnosis. If you’ve been helping a loved one budget and you’re frustrated when they don’t follow it, consider their limitations. Rethink where their issue stems from. Is it really because they’re “stubborn,” or is it due to a larger problem? If you believe it’s a cognitive issue, schedule a medical appointment if you’re able. If the results confirm an issue is present, consider if your loved one could benefit from having a financial guardian.
The Power of Budgeting
Setting up a budget won’t change your loved one’s financial circumstances instantly. However, implementing one can help achieve better financial stability. Having and sticking to a budget allows them to stay independent and secure for longer, and keep their dignity, autonomy, and peace of mind well into their golden years.
