Having an elderly person at home is always a blessing as they guide you during your challenging days, but the question is, what are you doing for their challenges? An old person is often exposed to illnesses such as dementia, forgetfulness or other cognitive diseases, which makes them dependent on you—financially, physically and emotionally. Narrowing down to finances, it becomes critical for you to take proactive steps to manage their expenses and money to avoid their exploitation and loss. Here is a caregiver’s guide to managing finances:
Create a Joint Account
If you notice that your loved ones have spent excess money in the past few months and can’t remember how and where the expenses were made, chances are that they are facing some cognitive disabilities. In such cases, you may want to create a joint account with them, so you get updates on when and where the money is transacted. This way, your loved ones won’t be financially exploited, or you can remind them where the money was spent. This step will also make them feel safe and supported by not giving up absolute control over their finances.
Keep Records of Expenses
If your loved ones cannot handle their finances anymore, you may take up the responsibility for their account and expenses entirely. Maybe this action can make them feel insecure about their finances, which may further create family disputes. Therefore, you can record all the transactions done from your loved ones’ accounts. Also, avoid using that account for your own expenses or needs. Then, show those records to your loved ones every week or month, so they are assured that their money is used for their expenses only and is in the right hands. You may also hire a caretaker for this and ask them to follow the same steps.
Plan the Expenses Together
Whether you are handling their finances, you should plan your loved ones’ expenses together. This way, you know that ‘X’ amount is spent on specific things and other costs. So, when you see more money being transacted, you can immediately take action to prevent potential fraud or exploitation of your loved ones. This ensures the safety of your family and keeps you in the loop with all their actions.
Prepare for Medical Expenses
Whether your loved ones’ health is on track or not, always have an account for unforeseen medical expenses. Arranging for the money at the last moment can be difficult and puts pressure on your current account dedicated to your bill payments or daily expenses. You can explain this to your loved ones and convince them to set aside some amount from their pensions or investments and open an emergency fund account. So, during emergencies, the pressure is not entirely on you.
Claim Your Parent as a Dependent
When you file for tax returns, you can claim that your parents are dependent on you. This will make you liable for any tax benefits. For instance, you can buy health insurance for them at a lesser price and even claim a tax deduction from the expenses of their treatment. This enables you to save more money and keep your loved ones safe and secure.
These steps will strengthen your loved ones’ trust and respect for you. If you have a hectic schedule, you can hire a caretaker from Cherokee Angels. We develop a family-like relationship with your loved ones so they feel comfortable and compassionate.