Talking to Parents About Finances

Some parents guard their finances closely, even from their children. To them, it's a matter of privacy. Some fear that their children are only after their money.

But helping your parents organize their finances and seeing whether they've planned well so that their last wishes are carried out could open the door to examining your own finances.
In some instances, older adults are reluctant to share financial and legal information with adult children. In such cases, it might be advisable that they consult with a neutral third party, such as an attorney, a qualified financial adviser, social worker or trusted friend to address legal issues and then have an attorney prepare the proper documents so that they will be accessible to family members in an emergency.

When talking to parents about their finances, children must be sensitive to their parents' need to still feel in charge.
The key thing for your parents is a sense of independence and control. Try to help them offload some of the burden of handling the finances with someone they can trust. Be careful of trying to push that on your parents because independence and control are crucial to them.

It's a delicate dance and one that will lead many people to seek a financial adviser who can help them. There are specific things you need to look for in an adviser to help your parents. Pay close attention to the questions asked by a prospective adviser. Boomers and seniors can and will sense that the conversation is not about meeting their needs, but about selling something.

It's especially important for seniors, who are prime targets for unscrupulous salespeople.