Managing your money with memory loss
It’s not a very pleasant thing to think about, but the grim reality of ageing is that there may come a time in our lives where we experience severe memory loss. And while this is undoubtedly devastating on a personal level, it can also put our finances at risk.
We’re going to look at the challenges that come when managing your money with memory loss, and the importance of putting mechanisms in place that will ensure your finances are in order should you ever succumb to such a condition. Planning ahead is the only way to ensure your financial obligations are met, and your family is secure.
What are the challenges?
Even in the best of times, meeting your financial obligations can be quite a difficult task. Add to this the burden of memory loss, and things like tracking your spending, keeping track of bank statements and paying bills becomes quite a challenge.
In addition to this, absorbing information from financial professionals like banking staff, advisers, and accountants can be impossible when suffering a memory loss condition.
How can I protect my money?
While it can be confronting to put mechanisms in place for situations where you can no longer makes decisions for yourself, it grants you a level of peace of mind that is priceless and relieves the stress of your loved ones having to make decision for you.
Undoubtedly, the most important tasks will be appointing an power of attorney, making sure your will is up to date and nominating your super beneficiaries.
But what about the day to day financial obligations on the smaller side of things? The Australian Securities and Investment Commission has outlined a range of tips for protecting your money, to ensure you meet your financial obligations even with memory loss.
- Consolidate your transaction accounts into one.
- Reduce the number of credit cards and store cards you have.
- Close your cheque account.
- If you have super in more than one account, consolidate them into a single account.
- Put a list on your fridge of what your regular bills are and when they come in (e.g. phone monthly, electricity quarterly, rates annually).
- Put a 'tick' beside each bill once you've paid it.
- Put unpaid bills on the fridge and take them down when they have been paid.
- Consider whether you would like to set up direct debits to pay some of your bills.
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