When the dynamic between adults and their parents shifts because of aging or health issues, it’s time to have some important –- but difficult -– conversations. Some of the toughest topics that need to be covered are related to money.

by Michele Lerner

When the dynamic between adults and their parents shifts because of aging or health issues, it’s time to have some important –- but difficult -– conversations. Some of the toughest topics that need to be covered are related to money.

A recent survey by the National Endowment for Financial Education (NEFE) found that seven in 10 adults say they have difficulty talking to their families about who will make financial decisions on behalf of an aging family member who becomes unable to handle their money.

The range of money problems among aging adults varies from something as simple as forgetting to pay an occasional bill to being completely incapable of making any financial decisions because of dementia or Alzheimer’s.

“One of the first signs that your parents may be having problems is if they pay bills late or pay them twice,” says Patricia Seaman, senior director of NEFE in Denver. “If you see overdue notices at their home, if they’re making irrational purchases like scuba diving equipment when they wouldn’t physically be able to use it, or even if they have a problem calculating simple math problems, then you may need to step in and help.”

Seaman says the best way to prevent family drama and financial challenges is to make a plan with your parents when they’re physically healthy and still living in their own home.

continue reading »