Sometimes loved ones may need extra help managing finances. These steps can help you get started with financial caregiving.
Step 1: Recognize when someone may need help with money
You may recognize that a loved one needs financial care and assistance if you notice:
Brian Formisano
• Bills are going unopened or unpaid
• Money is being spent carelessly or excessively
• Signs of memory loss related to finances
• Signs of financial fraud or scams.
If you notice any of these warning signs, it may be time to begin a financial care conversation so that trusted friends or family members can provide support, oversight and guidance.
Step 2: Open the door to a financial care conversation
The topic of financial caregiving is sensitive, so it is vital that everyone involved feels comfortable talking candidly about the subject.
To encourage open dialogue:
• Invite everyone who needs to be involved in the financial care process
• Set a date and timeframe that works for everyone involved, and ensure they know the purpose of the conversation
• Make sure everyone feels that the environment is comfortable, safe and low pressure.
Step 3: Discuss roles and financial responsibilities
Talk openly about your concerns so that your loved one understands your perspective. Be clear about the needs and reach agreement on what role everyone can play in the financial caregiving process.
Important questions about roles and responsibilities may include:
• If financial help is needed, where will it come from?
• Who will help manage finances and for how long?
• What level of supervision or joint decision-making is needed?
We recommend creating a basic chart that lists the tasks to be done, who’s on point for each task, and supporting details such as dates or contact information.
Step 4: Determine what financial access may be needed
In some cases, a trusted person may be identified to manage finances, or even complete transactions. This may never be needed, but it’s better to proactively consider the pros and cons of available options and consult a lawyer as needed before financial access is delegated.
Step 5: Stay organized with detailed financial care records
When you’re acting on behalf of another person with their finances, keeping detailed records will be essential:
• Understand all income sources to gauge the ability to pay for expenses
• Review accounts to confirm when payments are due, and if automatic payments are set up
• Set up payment reminders
• Limit the use of cash and keep copies of all receipts of expenses paid
• Use the memo field when writing checks or sending electronic payments to make notes.
Brian Formisano is the Wells Fargo bank branch banking region executive in Las Vegas.
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