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Episode 35: How to Set Up a Financial Safety Net for Your Aging Parent
15 Plays23 days ago
If your parent is starting to struggle with money management—or you’re worried about scams, rising care costs, or future crises—this episode is for you.
I’m Dr. Barbara Sparacino, and today I’m walking you through how to build a strong financial safety net that protects both your parent’s well-being and your family’s peace of mind. We’ll cover common financial risks aging parents face, practical steps to prevent mismanagement and fraud, and how to navigate these sensitive conversations—especially if your parent resists help.
🎧 Plus, I’ve created a FREE Financial Safety Checklist to help you get started. Download it at www.theagingparentcoach.com
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Transcript
Introduction to Financial Planning for Aging Parents
00:00:00
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Welcome back to the aging parent playbook. I'm Dr. Barbara Sparacino and today we're talking about something most families put off until it's too late. Setting up a financial safety net for your aging parent.
00:00:16
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Maybe your parent has always handled their own finances, but is now forgetting to pay bills or struggling to budget. Maybe you're worried about the cost of future care, but don't know where to start.
Identifying Financial Risks for Aging Parents
00:00:29
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Today, I'll help you understand the key financial risks aging parents face, put safeguards in place to prevent financial exploitation, create a financial plan that protects both your parent and your own future.
00:00:46
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So grab your coffee but take me on your walk and let's dive in.
Impact of Cognitive Decline on Financial Management
00:00:56
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The financial risks aging parents face.
00:01:01
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Many adult children don't realize how vulnerable aging parents are to financial instability until a crisis happens. Memory loss or cognitive decline can lead to missed bills, late fees, or mismanagement of accounts.
00:01:18
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Scammers specifically target seniors, tricking them into giving away money or personal information. The FBI reports that seniors lose billions each year to fraud.
00:01:33
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Long-term care is expensive. Without planning, a single health crisis can drain savings quickly.
00:01:41
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Ignoring these risks doesn't just lead to stress. It can cause family conflict, regret, and financial disaster that impacts both your parents' quality of life and maybe even your own financial stability.
00:01:56
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The good news, a solid financial plan can prevent all of this.
Strategies for Financial Management and Protection
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Let's move into the practical steps.
00:02:05
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How to protect your parents' finances.
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Here's how to secure your parents' financial future before crisis happens.
00:02:19
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Set up automatic bill payments to avoid missed payments from forgetfulness or hospitalization.
00:02:27
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Consolidate financial documents. Create a folder with bank accounts, insurance policies, and legal documents so they're easily accessible when needed.
00:02:38
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Monitor for fraud. Set up bank and credit card alerts to detect suspicious activity immediately.
00:02:46
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Get power of attorney, POA. This legal document allows you to manage your parents' finances if they become incapacitated. preventing costly court interventions later.
00:03:01
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Discuss long-term care costs. Does your parent have long-term care insurance, savings, or Medicaid eligibility? Planning for potential assisted living, home care, or nursing care now prevents scrambling later.
00:03:18
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These aren't just financial steps. They're emotional safety nets for your family's future peace of mind.
Overcoming Resistance to Financial Discussions
00:03:27
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What to do if a parent resists help.
00:03:32
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Talking about money with parents can feel uncomfortable, especially if your parent has always been private about their finances.
00:03:44
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Here's how to make these conversations easier.
00:03:49
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Use a real life example. Say, i read about a family who lost everything because they didn't plan. I don't want that to happen to us.
00:04:01
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Free minutes protection, not control. Emphasize you're trying to keep them in charge of for as long as possible, not take over.
00:04:14
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Take small steps. If your parent resists full financial discussions, start by setting up fraud alerts together or reviewing key documents with them.
00:04:28
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Respect their independence while planning for emergencies. You can explain, we're just setting up a plan so you stay in control, even if something unexpected happens.
00:04:42
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Starting these conversations early makes them less stressful, less rushed, and less emotional if a crisis occurs. It also reduces family conflict later.
Conclusion: Importance of Financial Planning for Families
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Financial planning isn't just about money. It's about security, independence, and peace of mind.
00:05:19
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If you found today's episode helpful, please share it with a friend or sibling who's also helping care for your parent or and their own aging parent?
00:05:33
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This is a family journey and planning ahead makes all the difference. Thank you for being here and I'll see you next time on the Aging Parent Playbook.
00:05:45
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Take care.