For those of you who have lived separately with parents and have been independent for a long time, your finances must have been separated from their finances as well. This is not a problem when parents are still productive and can manage their finances independently.
However, as parents get older and no longer have an income, their financial condition may change. In times like these, the parents’ financial condition may worsen, especially if the parent does not have enough savings to face his retirement.
Most parents may be reluctant and do not want to burden their children with financial-related matters, even if parents are in financial trouble. However, this is certainly not an excuse for you to keep the parents in these conditions, especially if it turns out you have a good financial ability to help them.
After all, it is your responsibility as a child to help parents in their old age, right?
Here are 5 Ways to Help Parents Finance
Most people often procrastinate to help their parents’ finances, even though they understand well how important it is to do so.
Inadequate or even far-reaching financial ability is a common reason. While on the other hand, parents get older and need immediate help. You certainly do not want to be late and then do not have time to give help to your parents, do you?
No need to procrastinate or even wait until they ask, here are ways to help parents finances.
1. Check Financial Condition
To find out the financial condition of parents, you need to check all existing posts in their finances. This is very important and will be a reference for you to take other necessary steps.
Check one by one post in the finances and see how the overall financial condition, ability to pay, debt, bills, and others. Do not forget to ask directly to your parents. Do they have any amount of bills or other debts that you do not know yet.
When you know clearly the financial condition of parents, you will also be more understanding and can see every detail so that it can take the various actions needed to help him.
Some parents may feel uncomfortable and unfamiliar with this. So you have to be patient to convince them and make them comfortable to show their financial condition in detail.
2. Arrange Budget
After knowing the financial condition of parents, it would be very appropriate if you arrange a financial budget for them. It could be parents have had a financial budget for this. However, it never hurts to draw up a new and more effective financial budget for now.
Encourage your parents to discuss and arrange these financial budgets together so they can understand well and convey their wishes related to the budget.
Do not forget to make some adjustments, especially in expenditure items. This usually has to be re-adjusted, especially if the current parent no longer has a fixed monthly income every month. Establish an effective budget to keep your parents’ finances working.
3. Easing the Payment Path
Unlike their productive years, in old age, parents are no longer as active as ever, including when recalling and paying for their regular bills. This should be your consideration, given the late payment of various bills will be rewarded with a fee amount of fines.
Avoid late payment problems and any amount of the penalties in the proper way. You can choose a payment path that is easier and more practical. One of them autodebet directly through savings account.
This will not only save you time and energy, but make your parents feel more comfortable and stay calm without having to think about a number of regular bills every month.
4. Take Over Charge
If it turns out that your parents’ financial condition is no longer possible to meet the various monthly bills, it would be most appropriate if you are responsible for the various charges.
Things like this that you can know after checking your parents’ finances where various expenditure items can be well-known and detailed.
Allocate some funds to pay these monthly bills. That way, your finances can still run well in the future even if you have some “new bills” every month.
If your finances are still fairly mediocre, it never hurts to trim the various posts that are not so important in spending or even make savings. That way, you can still have the funds to pay the parent’s regular bill.
Your help will be very useful for parents, especially if it turns out their financial condition is not able to cover the various bills.
5. Prioritize Debt Payments
In some cases, parents may have some considerable debt in the finances. Either this debt arises with your knowledge or not, still it must be paid, right?
Make sure you take the appropriate steps to deal with these debts, especially if the amount is large enough. If you have the financial ability to help parents in this debt problem, it would not hurt to allocate some funds to repay or even pay it off.
However, if you and your parents do not have the funds to pay for it, selling the existing assets is the right choice. You can discuss this with your parent first before finally selling the asset and paying off the debt.
Your parents’ finances will certainly be much better if the debt is not in it.
Do not Let Parents Difficulty in Their Old Age
There are many parents who have financial problems in their old age, especially those who do not prepare for pension funds. Make sure you do not let your parents in this condition.
Because their old age is your responsibility as a child. Help your parents’ finances now to keep them happy in their old age.