It’s not easy when the cost of living increases but your income doesn’t. If you or an older adult in your life is finding it hard to make ends meet on a fixed income, following a budget could be the answer to relieving any worries. 

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Assisting Seniors With Budgeting

Making budgeting easy for senior citizens involves simplifying the process and providing tools that suit their needs and preferences. Here are some strategies to make budgeting more accessible and stress-free:

Use Simple Budgeting Tools

A user-friendly budgeting system will stand a better chance of being effective. And user-friendly is very subjective. Consider what you or your loved one is comfortable with and go with that.

• Paper and Pen: For seniors who prefer traditional methods, a simple notebook or a printed budget worksheet can work wonders. They can jot down income and expenses manually.
• Basic Budgeting Apps: For tech-savvy seniors, use easy-to-navigate budgeting apps like EveryDollar, Goodbudget, or even Google Sheets to keep track of finances.
• Excel Spreadsheets: A basic Excel spreadsheet can be set up with pre-made formulas to calculate income, expenses, and savings automatically.

Automate Finances

Automation is a great tool to support budgeting efforts! Recurring deposits or payments can be made securely and on time.

• Automatic Bill Payments: Set up automatic payments for recurring bills such as utilities, rent/mortgage, and insurance. This reduces the burden of remembering due dates.
• Direct Deposits: Ensure that Social Security payments, pensions, and other income are automatically deposited into their bank account.

Simplify Expense Tracking

The easier a system is, the more likely it is to be followed.

• Categorize with Envelopes or Folders: Many older adults find budgeting easier when they can visualize and “feel” how their money is being allocated. If they prefer handling cash, use the envelope method, dividing cash into different envelopes labeled by category (e.g., groceries, transportation).
• Use a Single Account: Less really can be more. Use one primary checking account for all transactions, making it easier to track spending and monitor balances.

Set Up Alerts and Reminders

• Bank Notifications: Help them set up bank alerts to notify them of low balances, large transactions, or upcoming bills. This can prevent overdrafts and missed payments.
• Calendar Reminders: Even with auto payments and direct deposits, reminders on a calendar help maintain engagement with finances. Use a physical calendar or a phone app to remind them of bill due dates–both automated and manual–and scheduled deposits.

Review Regularly

• Check-ins: Set up a regular time to review their budget and adjust for any changes in income or expenses.
• Discuss Needs vs. Wants: Help them prioritize essential expenses (housing, utilities, healthcare) over discretionary spending. This can help prevent overspending in non-essential areas.

Plan for the Future

• Emergency Savings: Encourage them to have a small, accessible emergency fund for unexpected expenses like home repairs or medical bills. This reduces the stress of unplanned costs.
• Legal Protections: Set up a power of attorney or similar arrangements to ensure that finances are managed appropriately if they become unable to do so themselves.

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Budget Practice Makes Perfect

Spending habits can become as comfortable as a well-worn pair of jeans. While it’s natural to stick with what’s familiar, it’s important to periodically assess if your spending habits still align with your financial goals. Regularly reviewing your income and expenses can provide valuable insights into your financial health.

It’s hard to change old habits, but by breaking down budgeting into manageable steps and using user-friendly tools, seniors can lessen their worries and gain confidence in managing their finances. The more they try, the better they’ll get.

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