Publish Date: 07/03/2019
Caring for elderly parents? Open a family account
If you find yourself caught between two financially dependent generations, you’re part of the “sandwich generation”. Taking care of your own children while supporting your parents can put a serious dent in your budget, so financial planning is essential. Careful investing, diligent saving and opening a family account so you can better manage your parents’ financial care, are three ways you can successfully see to the needs of your dependents.
Aging is a natural and non-negotiable part of life. Taking care of your elderly parents could be the highest calling of your life, but the time and money it takes to do so can be stressful. If you have siblings who are capable of assisting financially, deposits can be managed easily with a group bank account, one of the most exciting options of an African Bank MyWORLD account.
Below are some of our most important tips for ensuring you’re prepared to care for your elderly parents:
In order to help others, you need to help yourself first. It’s important to protect your finances, time and comfort. Now’s the best time to start saving and allow compound interest (the ability of your investments to generate earnings, which are then reinvested to produce their own earnings) to operate in your favour.
Most people are financially unprepared when it comes to providing care to their ailing parents. Pay off anything you owe so that you can lower your living expenses. Encourage your parents to do the same, if possible. This will not only lower their living expenses, but it will also free up some cash to save towards their retirement.
The best tool to give you control over your finances is a budget. A budget allows you to make financial decisions at the start of each month, giving you the authority to choose where your currency should go. Create a caregiving budget and calculate what you spend on your parents’ needs. Asses your parents’ resources and how they might contribute.
Many parents of the “sandwich generation” move into their adult children’s homes. If your parents are in the fortunate position of owning a home of their own, consider either renting their house out so they can live on the rental income or selling their home to have access to the funds from the sale of the property. Speak to a qualified financial advisor for advice on short-term investment options that allow your parents’ money to grow with interest.
Taking care of your elderly parents can be stressful, especially if you aren’t getting help from your siblings. Below are tips for getting support from siblings.
You, as the Primary Account Holder, can then add one of your elderly parents as the Pocket User. This means that they can have their own debit card to handle day-to-day transactions, giving them a degree of independence.
Thanks to increases in welfare and better healthcare, many people are living longer lives. This means that you should prepare for the fact that your elderly parents will be part of your life for many years to come. We are responsible for our elderly parents, just like they were responsible for us when we were younger.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.