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NovemberSimple Ways to Help Optimize Your Parents’ Budget
This month’s topic was inspired by a recent “ah-ha” moment I had while reviewing my phone service plan and that of my parents. What started as a simple check on their plan led me to dig into their other monthly expenses, like cable and wireless bills. As I uncovered several overlooked costs, I realized just how common it is for aging parents to have budget items that may no longer serve them well. While estate planning and wills often take center stage, smaller, routine expenses can add up more than we think!
Common Overlooked Costs:
- Phone & Cable Services: Are your parents over-paying for services they no longer use? Many seniors have phone plans with features they don’t need or cable packages that are far too expensive for what they watch.
- Memberships They Don’t Use: If your parents aren’t driving much anymore, is that AAA membership still necessary? Small monthly charges can go unnoticed when we stop actively thinking about them.
- Unused Subscriptions: Do they subscribe to magazines, streaming services, or other digital platforms they no longer use? Reviewing recurring charges can lead to instant savings.
- Insurance Needs: When’s the last time your parents reviewed their insurance coverage? Policies taken out years ago may no longer fit their current needs. Regular reviews can help reduce unnecessary costs and even provide better coverage.
- Health Expenses: Are they on the right Medicare plan? Many seniors end up overpaying for health insurance simply because they haven’t reviewed or updated their coverage in years. It’s worth checking if switching to a different Medicare plan or supplemental policy could save them money.
- Home Maintenance and Utility Bills: Regularly reviewing utility bills, especially if they live in a larger home, can reveal savings opportunities. Could they benefit from more energy-efficient appliances?
- Unused Bank Accounts or Credit Cards: Some older adults hold multiple bank accounts or credit cards that may no longer serve a purpose, potentially incurring unnecessary fees. Consolidating accounts can simplify managing finances and reduce fees.
- Charitable Donations: If your parents are making regular charitable donations, it may be worth reviewing to ensure they’re still aligned with their goals and aren’t straining their current budget.
When Was Your Last Financial Check-In?
How often do you meet with your parents to review their finances? These conversations can be tricky, but they’re vital. As their needs change, so should their budget. A regular check-in can help uncover hidden costs and prepare for future financial needs.
And if financial discussions seem overwhelming, it might be worth considering whether they need the guidance of a financial advisor. Sometimes an experienced eye can catch what we may miss.
Written by: Steve Cartwright, CFP®
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