Financial Caregiving

Taking care of a parent is something you may be doing now or in the future. According to a study by the National Alliance on Caregiving and AARP, there has been a significant increase in the number of adults caring for an individual age 50 or older. When caring for an aging parent it is important to consider their financial needs as well as their physical and medical needs; if an adult becomes ill or incapacitated, someone else will need to step in to take care of their finances as well. Planning ahead can provide peace of mind ensuring everyone's needs and wishes are considered. The following steps can help you and your parents prepare for financial caregiving:

  1. Start with a conversation. This can be difficult but planning time in advance can help everyone prepare resources and materials needed for the conversation. Show respect and let your parents know that you are having this conversation because you care and want to look out for their best interest. Ask their goals and desires. This can help determine the financial impact of their choices.
  2. Organize financial and legal documents. This includes sources of income and investment accounts, bank accounts, deeds and titles, lockbox keys, insurance policies, estate planning documents, and personal information such as social security numbers, driver's license numbers, veterans ID, and Medicare or Medicaid numbers. Create a list of bills they are currently paying and information about any debts they owe.
  3. Establish a Power of Attorney. This gives a trusted individual the ability to make financial decisions on their behalf if they become incapacitated.
  4. Add an authorized signatory. This will allow a trusted individual to manage their accounts temporarily in an emergency.
  5. Streamline their finances. To help make managing their money easier consolidate accounts and credit cards, set-up automatic bill payments, and eliminate any duplicate or unused services and subscriptions. 
  6. Protect their finances. Use services to monitor their accounts and information. Make sure they have a my Social Security account set up through SSA.gov. This will allow them to manage and keep track of their benefits. Set up account alerts to monitor transactions that are made with their debit and credit cards. Help them sign-up for credit and identity monitoring so they may be alerted to any changes or misuse of personal information. Have them put a freeze on their credit reports to prevent new accounts from being opened in their names. Finally, help them set up spam blocking apps on their mobile phones to reduce solicitation and unwanted phone calls.

Caring for parents and their financial needs is an important role that you don't have to go alone. The following are additional resources that can help you along the way:

  • The Consumer Financial Protection Bureau offers a guide to financial caregiving with resources to help with managing someone else's money. 
  • Ohio.gov has resources to help answer frequently asked questions for seniors and caregivers.
  • Explore the Financial Caregiving Playlist through BMI Federal Credit Union's Online Learning Center to help you learn more about the responsibilities and expectations of this role.

Preparing in advance for financial caregiving can benefit you and your parents. It will allow you to respond quickly and more effectively when the need arises and proactively address any concerns they may have now. 

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(January 2025)