September 18, 2013

Financial Tips for Caregivers


As a caregiver, you may be surprised to discover there is more to the job than providing care and comfort for your aging loved one or parent. Your parent’s bills will still need to be paid each month on time and you may notice his or her funds begin to dwindle. There are simple ways to manage the funds and ensure that bills are paid without any emergencies.

Know the location of all personal finances and financial documents. When you become your parent’s primary caregiver, you will need to have your parent or his or her financial advisor communicate to you the location of all his or her  personal finances and financial documents. This means bank statements, wills, insurance policies and pension records.

Have access to bank accounts. In order to pay your parent’s bills while he or she is in your care, you will need access to his or her bank account and checks. He or she will need to add you for joint access to the account. This will add your name to your parent’s account as well as his or her checks.

Review your parent’s insurance policies. When caring for your parent, you will need to fully understand his or her Medicare policy as well as any supplemental plans he or she may have. The better you understand the policies, the less likely you or your parent will have to pay an unexpected healthcare bill.

To prevent any financial emergencies while you are providing care to your aging parent, always prepare in advance. Having documents in place for safe keeping and access to all of your parent’s accounts will help you stay prepared for the unexpected.