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Your parents need more than just help logging into their email accounts or following friends and family on Facebook. Here are some practical ways you can help them manage their finances in 2025 and keep them and their money safe.
Help your parents with day-to-day money management matters
Budgets, banking apps, OTPs and PINs are the bane of many elderly citizens! You can help your parents navigate this seemingly complex landscape with these easy tips:
Balance their budgets
Offer to help set up or go through your parents’ budget and ensure it balances, taking all income and expenses into account. If your parents are not comfortable with a budget app or spreadsheet, draw up a budget on paper, listing income and expenses that they can see and keep on hand. They can monitor their budget on this paper or use a notebook to list actual expenses and income.
Bank
Check that your parents have strong passwords for online banking and apps and that they know how to confirm transactions using OTPs. Also make sure that they can identify scams and don’t give out details to people on the phone. For example, let your parents know that details such as ID numbers, PIN numbers, OTPs and credit card CVV numbers must never be shared, no matter how nice or authentic the person sounds. And make sure your parents are up to date on the latest scams and that they know to contact fraud departments directly when they suspect fraud.
You can also offer to take care of their banking with an appropriate consent form or power of attorney. This way, you can make sure debit orders are scheduled on appropriate dates and that there are funds in the bank to cover these. Going through their monthly banking statements will ensure you spot suspicious transactions timeously!
Another area you can assist in, is helping your parents renew credit cards, change any debit order details and make sure they withdraw cash when and where it is safe, such as in a shop during the day rather than the ATM at night!
Top tip: add bank call centre numbers and fraud lines to your parents’ cell phone contacts.
Help your parents manage their insurance
Car and household insurance can be pricey, so make sure your parents have these covered at an appropriate amount for an affordable premium. Go through the insurance policy, check the excesses as well as cover amounts, and check any terms and conditions they need to meet such as tracking devices on cars. Some insurers require elderly drivers to get a note from their doctors saying they are competent to drive, so check this too if your parents are older.
You should also review long term insurance policies such as funeral and life cover. These give your parents peace of mind, but the premiums must be affordable. Check how much cover is in place and compare this to what is needed. Also make sure that there is no duplication, for example your parents’ funeral policy may have covered your aunt, for whom you have also taken out funeral cover! Where there is duplication, check the total sum assured on all policies. If it is more than is needed, you can save money by cancelling some cover. However, if the sum assured on all policies is what is needed, keeping the policies may make financial sense!
When reviewing your parents’ policies, find out what benefits or reward programmes they may have, such as access to legal services or a wills and estate planning benefit, and make use of these.
Top tip: make sure contact details as well as beneficiary nominations are up to date.
Help your parents manage their healthcare expenses
Review their medical aid plans, contributions and benefits every year. Make sure they are making use of any free services, like vaccinations and preventative screenings, to pick up on any healthcare issues early. And be sure to help them budget for annual premium increases.
When it comes to expenses not covered by medical aid, start with listing all their medical expenses over the past two years, and estimating any future expenses based on these, and any new health conditions, so you know how much may be needed.
In addition, find out which services are available in your area that are inexpensive, such as checking blood pressure at a local pharmacy, and encourage your parents to use these.
Help your parents manage pensions, investments and income
If your parents are working, you can help them review their retirement savings and plans and see how much income they would need and can generate in retirement. You, or your parents’ financial adviser, can offer valuable advice on how much and where to save and invest!
If your parents are retired, you can review their pensions and any annuities, make sure these are up to date and suitable for their income and needs, in line with their budget.
You should also check all fees on investments and make sure these are appropriate for the service received and that they don’t reduce returns by an excessive amount.
Help your parents manage their tax
Finally, ensure your parents’ tax returns are up to date, offer to help with e-filing or consult a tax practitioner who can help them file returns. The tax rebates and deductions increase if you are over 65 or over 75, so make sure all of these are included in tax returns.
When it comes to tax savings, work with a financial adviser to ensure investments are as tax efficient as possible, such as using tax-free savings accounts.
Stay safe in 2025
Criminals often target the elderly because they are more vulnerable and more trusting! Helping your parents with their money matters will reduce the risk of fraud and give them peace of mind that their finances are under control.