Taking care of an elderly loved one can be challenging, but when the time comes to start managing their finances, the task can be difficult. You are charged with looking after their bank accounts and spending habits and you have to manage their bills and monthly payments on top of your own. While it can be slightly overwhelming at first, it doesn’t have to be. Here are a few easy tips to make this process as simple as possible. 

How to Manage Your Senior Loved One’s Bank Account

1. Have the Conversation

The hardest part about taking over your loved one’s finances is having the conversation about it. For many people, the idea of relinquishing control over their finances means losing their independence. Rather than forcefully taking over the accounts, start a dialogue with your loved one. Talk things through and explain why you need to take over their accounts or at least have some supervisory capacity with their finances. They’re not necessarily losing their independence. Instead, they’re gaining an extra set of eyes to make sure everything gets paid on time and sent to the right company or creditor.

2. Make Sure You’re Ready

Taking over another person’s finances is a big responsibility and requires the ability to separate yourself from their personal spending habits and needs. Though you might be in control of their bank account, it’s still their savings. If you’re not ready to take over their account, speak with an attorney or another trusted family member about your options. If you’re unwilling or unprepared, don’t take on the added responsibility.

3. Remember There Are More Than Just Savings & Checking Accounts

When you take over a loved one’s finances, they often have more than the standard savings and checking account. They might have a high-yield certificate of deposit account accruing interest and money they can use. They could have investments earning dividends that you might not know about. Talk to your loved one and ask for a full list of the accounts they have before setting up a power of attorney or a guardian of property agreement. This way, you’ll know precisely what you need to manage at all times.

Looking for help managing your senior loved one’s bank account or refinancing their car loans as they head into retirement? Contact the team at North Jersey Federal Credit Union in Totowa, NJ. Their experienced personal bankers will help you set everything up for financial success. Learn more about their services online. Call (973) 785-9200 to schedule a free consultation.