Discovering a loved one is in financial trouble can feel like a sudden, sinking revelation. Unopened bills, unusual anxiety about money, or stories that don’t quite add up can signal a silent struggle that threatens their security and independence.
For seniors on fixed incomes, a single unexpected expense can unravel years of careful planning. The situation is delicate, but your support can be the stabilizing force they desperately need.
Let’s walk through compassionate, practical steps to help them regain control and secure their financial well-being without overstepping or eroding their dignity.
With fixed incomes and rising expenses, many older adults’ finances can end up strained. LendingTree shares five ways to help when aging parents are in financial trouble.
You may have been financially dependent on your parents when you were younger, but as your parents get older, you may need to step in to help them manage their own finances.
Fixed incomes, unexpected medical bills, rising costs, and even scammers can land an older adult’s finances in the red.
The good news is, there are ways you can assist your parents without compromising your own financial goals.
Once you understand the complete picture of their financial situation, you can begin working together on a plan to get them back on solid ground.
5 Ways to Help Your Loved One Get Control of Their Finances
Step 1: Get Organized and Assess Your Parents’ Financial Viability
Thomas C. West, CLU, ChFC, AIF, senior partner at Lifecare Affordability Plan, a financial management solution designed for older people, says the first step is to understand your parents’ balance sheets.
You’ll want to know what assets they have, in addition to their liabilities, and get a sense of their cash flow.
“The adult child can really only do justice to the circumstance if they understand the whole picture,” says West, adding that “It isn’t uncommon for adult parents to downplay any financial challenges that they might have. I would counsel adult children to work sensitively and diligently to get as much well-rounded information as possible.”
It may help to let your parents know that they aren’t alone in their struggle.
Baby boomers hold an average of $28,672 in non-mortgage debt, according to a recent study, slightly more than the average millennial owes.
Step 2: Prioritize, Plan, and Designate Responsibilities
The next step is to decide what you can provide, whether that’s money or time.
If you have siblings, each person in your family may be able to provide something different.
For example, you might offer to help with snow removal so your parents don’t need to hire someone, while your brother may take over the cable bill.
But when considering financial help, West says, be self-aware of your own circumstances to avoid trouble.
For example, you might encounter difficult choices along the way, such as whether to assist your parents with their debt or save for your own child’s education.
West says when you’re faced with an overwhelming decision, you should try to talk through what would happen if you failed to pay each expense to determine your top priority.
Are there any expenses that may result in an unacceptable consequence if they aren’t addressed?
For example, if someone is about to be discharged from a nursing home, paying for their care might take on greater urgency than paying off your mortgage early.
If you do decide to contribute financially, be wary of how quickly your finances can become entangled.
Avoid co-signing a loan or adding your parents as authorized users to your credit cards, or you could later be responsible for paying off their debt.
Step 3: Solicit Outside Resources such as State or Federal Programs
If it makes sense, consider helping your parents find the tools and services they need to make better financial decisions on their own.
That can help you and them avoid financial and emotional stress.
The right resources for your parents will depend on what they need the most help with.
If getting out of debt is a priority, consider directing them to the National Foundation for Credit Counseling, a nonprofit organization that offers debt management plans.
Or, if you feel that your parents need financial literacy help to understand their situation fully, you might direct them to the online resources provided by the Consumer Financial Protection Bureau.
You could also look into state and federal benefits programs your parents might be eligible for. And if their income has changed, they may qualify for Medicaid or SNAP.
While those programs won’t help with debt directly, they can help with covering medical expenses and food, respectively.
If one of your parents is a qualifying veteran, the VA Aid and Attendance program may also be able to help reduce expenses.
You might also look into local resources that could help with other expenses, such as reduced-cost transportation programs for older adults.
Step 4: Protect Your Parents From Fraud by Reviewing Their Credit Report
West recommends reviewing your parents’ credit reports to ensure they haven’t already been exposed to scammers.
Once you’ve reviewed the reports for errors, consider freezing the credit reports. A credit freeze, also known as a security freeze, is the best way to help prevent new accounts from being opened in their name.
With a credit freeze in place, only your parents can release the reports for inquiries when needed.
You should also educate your parents about the warning signs of scams.
Remind them not to click any links in emails or texts from unknown senders, and to keep their sensitive financial information private.
If you believe your parent may have already been the victim of fraud, report the incident to the Federal Trade Commission.
If you don’t trust your parents’ cognitive ability to recognize scams, it’s time to consider taking over their financial decisions.
Step 5: Pursue a Durable Power of Attorney if Necessary
A “durable” power of attorney is a legally binding document that your parent would sign to permit you to make financial or health-related decisions on their behalf if they become incapacitated.
“You need to protect somebody’s independence until they move to a point where perhaps they are not making decisions that are in their own best interest,” West says.
However, you should have the document drafted before the issue becomes urgent, so your parent can sign it.
You also shouldn’t be the only one making the decision.
“Make sure you’ve got an objective third-party available to help evaluate the suitability of pursuing a power of attorney,” West says.
After that, hire an experienced local attorney to write up the documents.
Final Thoughts on Finances for Seniors
Helping a senior navigate financial difficulty is ultimately an act of profound protection. It’s about safeguarding their autonomy by providing the tools and support they need to feel secure again. By approaching the situation with empathy, patience, and a clear plan, you can help lift a crushing weight of worry and restore a sense of peace.
Your involvement is not about taking over, but about standing beside them to ensure their later years are defined by comfort, not crisis. Taking these steps together can preserve their independence and provide you both with invaluable peace of mind.
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Guest contributor: Joshira Maduro is a market research analyst at LendingTree, where she writes insightful pieces that empower people to make better financial decisions. She lives in Charlotte, NC, navigating care for her elderly parents.
