Financial literacy for seniors is critical, yet consistently overlooked. It’s a good idea for caretakers and loved ones to understand how to look after their parents’ finances. It’s also important for seniors to understand their own finances as well.
April is National Financial Literacy Month. It’s important for seniors and their loved ones to understand what may put their money at risk.
Financial Literacy for Seniors: Understanding the Issues
Scams – Seniors make a prime target for scammers. There are insurance and Medicare scams, funeral scams, counterfeit drug scams, reverse mortgage scams, and more. The National Council on Aging writes about the risks seniors face in this article. Veterans can often fall victim to a host of scams.
Risk for Identity Theft – Adults over 60 are at an increased risk for identity theft. A fixed income can make this even more difficult to endure. Carrying your social security card or Medicare identifications can increase your risks. Thieves can also snatch important paperwork out of your mailbox. Phone and digital scams also target seniors. The website Senior Advisor has important information on how to protect seniors against this threat.
The Importance of an Emergency Fund – A stable emergency fund can help in the event of a medical emergency, illness, or any life-changing event. This can help provide security for the whole family. Three to six months of savings could have a tremendous impact. While there may be positives that come with a life-changing event, it may require a change in the way that you handle money.
A Natural Disaster Plan – Even outside of fire, hurricane, and earthquake territory, it helps to be prepared for a natural disaster. Tornados, floods, and thunderstorms can cause tremendous amounts of damage. It helps to be insured for the appropriate types of potential disaster. It may help to have an emergency kit prepared for the event of a natural disaster. No one thinks it will impact them until it’s too late. When the appropriate measures are taken, it can make a difficult situation much easier to endure.
It’s good to be prepared for any of the above financial emergencies. Understanding what’s necessary to prevent scams and theft is key – along with how to remain prepared for unexpected events. A strong understanding and financial literacy for seniors can offer peace of mind.
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