Various factors relating to aging can make managing money more difficult, including medical issues. However, there are ways you can prepare yourself and your loved ones to make money management easier.

As you age, daily tasks like managing money may become more difficult. This may be due to medical or mental health conditions.

People with Alzheimer’s disease or other forms of dementia may require more help managing their finances than those without one of these conditions.

There are certain signs people can watch for that may mean their loved one is having difficulty with money. These signs include:

  • difficulty paying for a purchase or counting change
  • difficulty calculating a tip
  • difficulty understanding a bank statement or balancing a checkbook

Other indications may include:

  • unopened or unpaid bills
  • unexpected new items in the home
  • a lot of new purchases on a credit card
  • money missing from their bank account

It may be useful for a family member or financial representative to regularly check the individual’s bank statements and other financial records. This can help protect them from financial abuse or fraud.

Advance directives

To prepare for the future, it can be useful to set up an advance directive. This is a legal document that outlines your preferences for medical decisions.

A durable power of attorney, one type of advance directive, allows you to name a trusted individual to have the ability to make financial, medical, and legal decisions on your behalf if you become unable to do so.

Medicare can help cover advanced care planning as part of your yearly wellness visit.

»Learn more: Financial caregiving

Having a budget can help older adults retain financial stability, and it may help boost their independence. Generally, retired adults in the United States are more financially secure than other age groups. However, around 10% of adults over the age of 65 live below the poverty line.

Regardless of your financial standing, making a budget can be helpful. This is especially true if you are on a fixed income.

Tips for starting a budget include the following:

  • Know exactly how much is coming in, and make a list of all your income from month to month.
  • Make a list of all your expenses. Start with your largest expenses, such as housing costs, health costs, and car payments. Then, look at your average household spending on variable expenses, such as groceries and entertainment.
  • Try to create an accessible emergency fund by setting aside a bit into a savings account each month.
  • Try to anticipate higher expenses in the future. Overestimating your expenses can be helpful, within reason.
  • Be careful with debt. Accumulating more debt during retirement on a fixed income can make it more difficult to pay your bills.
  • Remember that small adjustments to your spending can make a big difference.
  • Take advantage of senior discounts when they are available.

There are various ways that can help you save more money.

Medicare savings

Medicare Savings Programs can help you pay for costs associated with Medicare Part A and Part B, including:

  • premiums
  • deductibles
  • coinsurance
  • copayments

To qualify for one of the four Medicare Savings Programs, you must meet the income and resource requirements that range from $1,325 to $7,135 per month, depending on your circumstances.

Transport savings

Increasing gas prices can make carpooling a good option to save money. You can try riding with a friend or family member to go shopping or carry out other errands.

You may also be able to contact your car insurance and ask about any savings or discounts they may be able to provide.

Public transport like buses may offer senior discounts. Utilizing this form of transportation may help save money as you don’t have to pay for fuel.

Drug-discount cards

Drug discount cards can help save money on prescription medications. These cards are often available at pharmacy counters. These cards can save you up to 80% on your prescriptions. Examples include:

Medicare Extra Help

The Medicare Extra Help program helps people with limited income pay for certain costs associated with Medicare Part D, including:

  • premiums
  • deductibles
  • coinsurance

You can automatically qualify for Extra Help if you have full Medicaid, a Medicare Savings Program, or receive Supplemental Security Income (SSI) from Social Security. You can apply for Extra Help if you meet the income and resource requirements.

Lower energy consumption

Turning off appliances, such as computers, TVs, and lamps, when you are not using them can save money on your gas and electric bills.

Additionally, not running your washing machine or dishwasher until you have a full load can also help save on energy bills.

You can also check to see if there are utility assistance programs in your area.

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Managing finances can become more difficult as you age. However, there are ways you can maintain your financial independence.

You can begin by setting up an advance directive so a trusted friend or family member can help make financial decisions for you if you cannot do so. You can also set a budget and look for ways to save money, like utilizing Medicare Savings Programs and drug-discount cards.