July 26, 2023
- Olsen Breet
- July 29, 2020
Money is a subject that everybody fights shy of talking about and things become more complicated when you have to talk to your parents about their money. When it comes to finances, we want to make the conversation more private, which is quite hard.
You may not feel like talking over money with your parents as you may feel as if doing it will be like accounting for each penny in their care.
Your parents can find it offending – after all, they are more experienced than you in taking care of money. It is true, but several grey shades can get by your parents. It is crucial to understand the exact financial position of your parents.
Sometimes, a healthy conversation about their finances can help them overcome everyday challenges. The financial industry is evolving continually, and new schemes are being offered every other day. It is not easy for older people to keep abreast of these changes.
They will likely miss out the benefits and schemes that are worth investing. Break the shackles of hesitation and open up to discuss money with your parents. Here is how you should talk to your parents about their finances.
Broach the subject carefully
Whether your parents are well-off or their financial condition is OK, you should carefully broach the subject. Under both circumstances, you can think that it is not necessary to discuss money as they can get by. Yet, there is always a reason to talk to them about their finances.
Some people do not start the conversation until they reach their 70s, but the sooner you start, the better it is. Never try to jump in their financial life without being asked to do so. Otherwise, they will take it threatening.
To make the conversation subtle and less intrusive, you should start the conversation by asking them if they need any help or advice.
If they show a sign of approval, you should make it more intense by asking questions, for instance:
- What practices do you find best and useful to handle money?
- Do you need to take out a loan?
- What do you think about in-home care and assisted living?
- What plans have you made to get by the rest of life?
- What are you planning about your estate?
It is not necessary to make this one-day meeting. If you discuss all streams, it will be very hectic for you as well as your parents.
Bring the matter politely and gradually to debt
Debt is a harsh reality that over 60% of Brits are facing after turning 60. You parents may also be in the red, but you may not be aware of. Many parents do not want their children to know about their debt as they feel ashamed about it.
If they die before settling their debts, it will be passed to the estate and will be paid off before the distribution. Sometimes, debt problems are not very big. For instance, they would have taken out emergency loans in the UK and may be struggling to pay back.
It can terrify them pose a threat to their financial condition. You can give a helping hand to your parents to get rid of it. If they are juggling with multiple debts like bad credit loans and credit card bills, tell them how debt management plans and debt consolidation loans can be ideal options.
When you have to start a conversation about debts, you should reach out to the topic in an indirect way. For instance, you should ask them if there is any expenditure that they cannot meet out of their income. Try to know how they are funding unforeseen expenses. Asking such questions will give you an idea of their financial condition in a more accurate way.
The ultimate goal of having a chat about money with your parents is to ensure that they are not running out of money. They are in a sound condition and not in the red. Having your parents opened up to yourself about their finances is quite hard, but you can get it done if you carefully bring them to that topic.
Olsen Breet is our in-house Financial Expert at EasyPolicyLoans, with more than a decade of writing for various finance companies in the UK. He has got this knack for turning even the trickiest money matters into something we can get our heads around. Before he started sharing his wisdom here, Olsen was playing with big numbers and advising on loans at a bank. He graduated from University of Glasgow, grabbing a finance degree before jumping into the deep end of the financial pool. Olsen’s our go-to guy for making sense of market trends and is always ahead of the curve.