Managing elderly parents’ finances can be challenging. Many family caregivers are juggling their own careers and families while caring for elderly parents, and weight of responsibility means bills might get overlooked, budgeting may become a struggle, or their loved one might fall prey to financial scams. These issues cause stress not only for aging parents but also for family caregivers and their siblings or other family members.
Hiring a Daily Money Manager (DMM) could be the solution to these challenges.
What is a Daily Money Manager?
Daily Money Managers are dedicated professionals who help individuals, including seniors and busy professionals, manage their financial tasks and paperwork. They don’t replace accountants, financial planners, or attorneys—they work alongside these professionals to handle their client’s day-to-day financial responsibilities accurately and efficiently.
What services does a Daily Money Manager offer?
Daily money management services can be tailored to meet the specific needs of their clients. At Firefly Financial Organizing, here are some daily money management tasks we perform:
- Pay bills. Ensuring timely payments to avoid late fees, interest charges, and utility shutoffs.
- Bank account management. Reconciling bank accounts and monitoring transactions for suspicious activity.
- Budgeting. Helping clients control spending and manage cash flow.
- Paperwork organization. Sorting mail, organizing financial documents, and maintaining records for tax or legal purposes.
- Communicating with other professionals. Coordinating with accountants, attorneys, medical professionals, and financial planners.
- Fraud prevention. Identifying red flags and taking steps to protect clients from scams or financial abuse.
The Benefits of Hiring a Daily Money Manager
Hiring a DMM provides numerous benefits for both your aging parents and your family. Here are a few ways a DMM can make managing elderly parents finances easier for adult children caring for seniors.
Helping your parents maintain independence
Aging doesn’t have to mean losing control over personal finances. A DMM helps your parents stay involved in their financial decisions while receiving the support they need to manage daily tasks. This can help them live independently longer, reducing the need for more intensive caregiving arrangements.
Getting finances in order for estate planning
Organized finances make estate planning smoother. A DMM ensures your parents’ financial records are up to date, which can be a tremendous help when creating or revising wills, trusts, and other legacy planning documents.
Avoiding late fees and interest charges
Missed payments lead to unnecessary financial strain. By paying bills on time, a DMM helps your loved one save money and keeps utilities and services uninterrupted.
Preventing financial fraud and abuse
Scammers often target scammers, believing they have hefty retirement savings and cognitive issues that make them prone to exploitation.
According to the FBI’s Internet Crime Complaint Center (IC3), in 2023, over 101,000 victims over the age of 60 reported losses of almost $3.4 billion to the IC3. The average loss for these victims exceeded $33,900, and nearly 6,000 elderly victims lost over $100,000.
A DMM monitors financial activity, spots suspicious transactions, and advises on safeguards to prevent financial exploitation.
Reducing stress and saving time
For adult children, balancing careers, personal responsibilities, and caregiving can be overwhelming. A DMM alleviates some of that stress by taking financial tasks off your plate. This time-saving support allows you to focus on what matters most—spending quality time with your parents, family members, and friends.
Promoting peace among siblings
When siblings disagree on how to manage elderly parents finances, tensions can run high. A DMM provides an objective, professional perspective and makes decisions in the best interest of your parent. This neutrality can help reduce conflict and support better communication in family dynamics.
Providing peace of mind
Knowing that a professional is managing your parent’s finances brings peace of mind. You can rest assured that their financial needs are being met accurately and ethically.
How to hire a Daily Money Manager
If you think a DMM might be the right fit for your parent, start by researching professionals in your area.
Look for a DMM who is a member of the American Association of Daily Money Managers (AADMM). This organization runs background checks on all members and ensures they adhere to professional standards and ethics.
Schedule a consultation to discuss your parent’s needs and ensure the DMM’s services align with those needs.
Ask questions such as:
- What services do you provide?
- How do you communicate with clients and their families?
- What is your fee structure?
- Do you have experience working with seniors?
It’s important that your parent feels comfortable with the DMM, as trust and a good rapport contribute to a successful working relationship.
Do you need help managing elderly parents finances?
From helping your aging parents maintain their independence to protecting them from financial fraud, the benefits of a DMM extend beyond managing money—they also bring peace of mind and reduce tension for the entire family.
If you’re ready to explore this option, reach out to Firefly Financial Organizing. We’re happy to talk through how we can help support your parents’ financial well-being while giving you the time and peace of mind to focus on taking care of your family and career.
