Talking to your kids about money and aging is sensitive, important, and can be difficult. These are hard conversations that also need to happen regularly, especially for parents of the ‘sandwich generation’.

For this generation, many are now providing support on two sides. Nearly half of adults in their 40s and 50s have a parent 65 or older while also either raising a young child or financially supporting a child 18 or older, according to the Pew Research Center. About one in seven is financially supporting both an aging parent and a child.

The sandwich generation has the responsibility of looking out for signs of cognitive decline in their parents. They need to be on the lookout for behavioral changes such as personality traits that used to be normal but now no longer exist, emotional changes, periods of confusion, or an unkept appearance. Cognitive decline in your parents can be detrimental to their finances and expose them to exploitation and erratic decision making. It could wipe out everything they worked so hard to preserve. Catching these changes early and stepping in will allow everyone to have a comprehensive plan and support laid out.

Many who start experiencing decline or who are a caregiver to those with cognitive decline or some form of dementia, find that the demands to be substantial. Managing the physical needs of your loved ones can completely dominate your energy, blocking out attention from examining financial questions. These financial issues and calculations can end up being just as important to you or your parents’ comfort. And given the rising costs of extended care and the uncertainty of each day, these hard questions should be addressed early on.

Steps You Can Take Today

Below are three tips for navigating the emotional and financial maze that covers cognitive decline and dementia in yourself or your parent:

1. Gather and organize important documents for yourself or aging parent

This is especially important when you begin to notice either yourself or your parents in the early stages of decline. Gather and update key documents such as a will, power of attorney (healthcare and financial), living trust, and any other advance directives so that decisions are clear and can be executed. Lastly, current information on all bank accounts, insurance policies, IRAs, etc., should be organized for a comprehensive family inventory of everything pertaining to their finances.

2. Document yourself or your aging parents digital footprint

In today’s world, the number of passwords we keep for the various accounts and logins is endless. Make sure to safely store all passwords and usernames for yourself or your parent so this information is easily accessible to whoever is designated as gatekeeper.

3. Plan ahead for options of in-home vs facility care

Additional care may not be needed now but things can change quickly. It is beneficial to have those discussions now to outline possible costs and whether in-home or facility care is preferred or possible. Start researching availability in your area. Do you or your parents live nearby, and do you have other children or siblings to share responsibility?

For now, for today, and for your future, it is important to plan, research and evaluate as early as possible for the many unpredictable turns that aging and dementia present for you or your aging parent and their loved ones. Members of your family should be attending meetings with their parents’ financial advisors to gain a more thorough understanding of their parents’ goals and understand what they want to do with their money. Do not go through it alone. In addition to the medical professionals and obtaining cognitive assessments, meet with professional advisors in various fields to guide you through all the needed documentation. We’re here to help you, or your children begin thinking about the next steps.

A Guidebook to Help Continue the Discussion

Whether you need to speak to your kids, grandkids, parents, or your partner, our guidebook, The Financial Conversations Your Family Should Have, can help you get these important financial conversations started within your family.

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