Our mailboxes are constantly flooded with requests for charitable giving from well-intended charities and “special offers” for renewing subscriptions. For seniors, giving can be a rewarding practice that allows them to support causes they feel passionate about. Subscriptions can provide convenience and access to a wide range of products and services. However, for aging adults, keeping track of who they are paying money to and how much is being spent can become a significant challenge. Creating a strategy for giving, spending, and how to monitor expenses becomes crucial.

A Plan for Charitable Giving:

Let’s look at an example of how donations can get out of hand:

For years, Jane has donated to charities that seek to end hunger for children. Early on, she carefully researched and selected one entity in particular whose mission she felt driven to support – the fictious “World Children’s Fund”. Now, as a long-time contributor in her 80’s, she receives dozens of solicitations from various organizations throughout the year – some with similar sounding names like “Children’s World Fund”. With her memory in decline, she has a difficult time distinguishing between agencies and often doesn’t remember whether she sent in a check.

A thoughtful strategy can maximize the impact of charitable donations while ensuring a senior’s financial stability. Here are some ways to keep your giving in line with your intentions:

  1. Set Clear Goals: Determine the causes that matter most to you and set clear goals for your contributions.
  2. Plan Your Budget: Decide how much you can afford to give annually. This should be an amount that fits comfortably within your financial situation.
  3. Schedule Your Donations: We recommend, when possible, making all planned donations at one time during a year and then ignore the solicitations that come in the mail. If you don’t open them, they can’t pull at your heartstrings or confuse you. If you can’t afford to make all the donations at once, you can spread it out over a few months.
  4. Use a Notebook or Spreadsheet: Document each donation, including the amount, date, and recipient.
  5. Set Up Alerts: For recurring donations, set up alerts or reminders on your phone or calendar to keep track of these transactions.
  6. Review Regularly: Schedule a review of your transactions to ensure all donations align with your records and that your giving is still feasible given your financial situation.

Keeping Recurring Subscriptions in Check:

Automatic renewals are designed for convenience, but they can easily lead to paying for services that are no longer needed or used. This is particularly problematic for aging adults, who may inadvertently continue to pay for subscriptions due to forgetfulness or a lack of awareness about renewal policies. Here’s an example:

Robert’s wife, who handled their finances, passed away last year. Their mailbox is full of renewal notices for everything from streaming services to magazines to social memberships. Robert is overwhelmed. The “last chance” printed on envelopes causes him anxiety that he hasn’t paid for something important. He doesn’t know which services he really needs or when they were last renewed.

Fortunately, there are several strategies aging adults, like Robert, can employ to stay on top of their subscriptions and ensure they only pay for what they truly need:

  1. Conduct a Subscription Audit: Compile a list of all current subscriptions by reviewing bank statements, credit card bills, and email notifications. Once a comprehensive list is established, categorize each subscription based on necessity, usage and renewal date.
  2. Set Up Alerts and Reminders: Utilize tools such as calendar apps – or even mark a physical calendar – to set alerts for upcoming renewal dates. These reminders provide an opportunity to evaluate whether the service is still needed before it renews automatically.
  3. Review and Reassess: Establish a routine, such as quarterly reviews, to reassess all subscriptions – consider changes in lifestyle, interests, and financial situations that might affect the necessity of each subscription.

Know When to Ask for Help

Even with the best strategy and tracking system, it can all become too much for a senior to manage. At that time, it’s important to ask for help. Family members or trusted friends can provide support in reviewing and organizing financial commitments.

Professional assistance, like the bill-paying services we provide at Life Managers & Associates, can offer guidance and oversight. Our services can:

  • Monitor financial activity: Keep track of spending and ensure payments are made on time.
  • Provide accountability: Help you stay within your financial goals and avoid unnecessary expenses.

By implementing these strategies and seeking support when needed, managing finances in later years doesn’t have to be a daunting task. With the right tools and support, seniors can enjoy peace of mind, support charities important to them, and maintain financial security.