(MoneyHippo.com) – Most people in the US and around the world are struggling to pay the bills as inflation rates and the cost of consumables continue to rise. People enjoying their golden years constitute one of the hardest-hit population segments because, more likely than not, they’re on fixed incomes. Adult children around the nation are either already financially assisting their parents or may soon need to help. Here are some ways to accomplish the meaningful gesture while keeping yourself financially strong.
First, get your budget in order and help them do the same. If you both cut back on extraneous spending, it can help you create the means to assist your parents financially while allowing them to maximize their income. If you find you’re supplying more than half of their support and their income falls under a certain IRS threshold, you could claim them as dependents on your taxes. Be sure to consult the IRS first and discuss the decision with your parents.
While your mom or dad are probably already covered for free under Medicare Part A, the policy doesn’t cover a lot. Consider supplementing their health insurance by picking up the tab on Medicare Part B, a prescription plan, or picking up their medication costs.
Unscrupulous people often target seniors for fraud schemes, so warn your parents about them and consider monitoring their credit and bank accounts for signs of fraud.
Of course, before you make any moves to take care of your mom, dad, or both, have a conversation. You want to ensure they maintain their dignity and independence while you assist them, just like they’ve likely done for you countless times before.
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