Harris: Seniors and their money in May
By Charlestien Harris
Here’s a little-known fact: May is nationally recognized as Older Americans Month. Established in 1963, this observance honors the legacies and contributions of older Americans and supports them as they transition into the next stage of life.
During this time of life, seniors are often targeted by scammers and must also be mindful of how they manage their finances. Many older adults, due to reduced income, may need to create a budget to stay financially on track.
I’d like to empower our seniors with a brief overview of basic money management tips and help them develop vital financial habits – habits that could make it more likely they’ll have money left at the end of the month. These tips range from creating an effective budget on a fixed income to exploring local property tax discounts for seniors.
Let’s take a closer look at some timely suggestions that could make a real difference in how seniors handle their finances:
- Create a Monthly Budget
Learning to budget effectively – especially for seniors living on a fixed income – can be a game changer. A solid budget provides a clear picture of where money is going and helps guide informed decisions to sustain one’s lifestyle. Start by categorizing your expenses and tracking your monthly spending. A good budget should reflect your needs and financial goals, and be flexible enough to allow for adjustments. - Take Advantage of Senior Discounts
Many businesses and services offer discounts specifically for seniors, including savings on groceries, medications, dining, travel, and more. Be proactive – ask about senior discounts when making purchases. It’s a simple yet effective way to reduce expenses. When my husband turned 62, he began asking for his discounts, and those savings added up over time. Remember, every penny counts! - Preplan for Healthcare Costs
Healthcare is a major expense for many seniors. Planning ahead can help reduce financial stress. Start by estimating potential healthcare costs, including medications, regular check-ups, and possible hospital stays. Incorporating these into your budget can make a significant difference. Also, look into healthcare assistance programs in your area – they can help ease the burden of covering these costs entirely on your own. - Avoid Scams and Identity Theft
Sadly, seniors are frequent targets of financial scams and identity theft. Stay informed about common scams and learn to recognize red flags. If something sounds too good to be true, it probably is. Always double-check before sharing personal or financial information, and report any suspected scams to the authorities immediately. Your personal information is your identity – protecting it is a key part of financial literacy. - Use Estate Planning to Organize Your Finances
If you have assets to pass on, it’s important to have an estate plan. Seniors should complete and regularly update their estate plans, which may include wills and trusts, to ensure their assets are distributed according to their wishes. If you’re unsure where to start, consider consulting a Certified Financial Planner (CFP). You can find a qualified professional here.
As we live longer, our finances need to last longer, too. Managing money wisely is one way for older adults to age well. Good money management is essential at every stage of life. As we grow older, our financial needs – and our spending and saving patterns – evolve. The suggestions above are a great starting point on the journey to financial success.
For more information on this and other financial topics, you can email me at charlestien.harris@banksouthern.com or call me at 662-624-5776.
Until next week – stay financially fit!
Charlestien Harris is our financial contributor, a financial expert with Southern Bancorp Community Partners whose articles are seen in a number of publications around the region.
