More and more often we are hearing about seniors saying yes too often. They are getting into financial trouble and then have nowhere to turn. Some may be supporting elderly parents who themselves do not have sufficient funds. They have to pay for their own health care in long term stay homes. Then there are the children who used to a life of never wanting for anything. They expect the same thing as grownups. They forget that their parents worked hard for the money and saved before they bought a big home, car etc. We see many of our friends dealing with these issues. They agonize over how much money to hand out. Should they give money now and jeopardize their retirement?
Why are Seniors Saying Yes too Often are Getting Into Financial Trouble
In most situations, they just want to help their family members now while they are still alive. If they help them now they can also enjoy what their financial gifts have purchased for their kids. Quite often it is the children putting pressure on the parents for them to help out.
Perhaps a down payment on a home or a new car. There credit card bills are due and they need help paying the bills. It might even be verbally worded as a loan, however one the money is given, most never see a penny back again. If you do give money to a family member, assume you will never see it again. If you do it is a bonus.
Can You Give Away Too Much Money
Seniors sometimes give too much money away. Then they find that they are living longer than anticipated and run out of funds to pay for whatever expenses they have. Many are forced to take room mates, move in with the kids or just downsize to a one room apartment. If only they had been more careful with their money and perhaps had held back a bit. If only their kids were now in a financial situation to help them now.
Sadly, the money is gone and no one has enough to support their parents in this kind of situation. The answer is that every senior should evaluate the impact of loaning or giving money to a family member. Will impact their lifestyle or quality of life in the future? What will be the impact if you never see this money again?
Make plans now to set up a budget. Ensure that you will have the funds you need to pay all of your bills and living expenses. Then if you think you will have money left over, you might consider gifting funds to your family while still alive.
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