Financial literacy is an important skill for any generation, and there are dozens of self-help books and seminars that can help any age group achieve this. However, one often-forgotten demographic when it comes to staying financially solvent is senior citizens. In the US, CBS News reported that tens of thousands of seniors are being driven into debt because of loans. While the number of elderly facing the same problem in the Philippines might not yet be known, it’s never too late to start learning how to budget and spend your money wisely. Help your grandparents avoid debt trap by following these tips below.
Keep Track of Their Savings
Living off of savings and pension is the standard for many seniors and grandparents. However, Filipinos have the lowest retirement savings in all of Asia, with income equivalent to only 3.6 months set aside for retirement. This, combined with the low government pension received by senior citizens, could spell trouble for your grandparents. Help them manage their savings by keeping track of assets and stopping them from overspending on superfluous items, and they’ll thank you later.
Check Their Taxes
Senior citizens in the Philippines receive a lot of perks, thanks to the Republic Acts 7432 and 9994, or Expanded Senior Citizens Act of 2010. But while your grandparents may seem comfortable now, there’s the unfortunate reality that they may be facing a lot of hidden charges or unpaid taxes such as real estate tax or amilyar. Avoid the headache of penalties by taking time to go through their assets and papers with them and checking off what hasn’t been paid yet, and set a payment plan together. That way, neither of you will have to face any unfortunate bumps in the road later on.
Help Them Budget
Many retirees invest their money into small businesses or consultations, which help them earn money despite retiring from the workforce. Whether or not your grandparents have done the same thing, learning to budget efficiently will go a long way in making sure that they’re financially stable for years to come. Take the time every month to go over their budget together, and see whether there are extraneous items that are taking up too much money. Maintaining this habit will keep them happier and more financially stable in the long run.
Get Them Insurance
Due to weakening immune systems and the surfacing of lifestyle diseases, your grandparents may be dealing not only with maintenance medicines, but also with the danger of hospitalization. This can be a huge drain on money and resources, and anxiety over falling into medical debt may even worsen their condition. Keep them worry-free by subscribing to an insurance plan. Paramount Direct’s extensive PrimeCare Cash Plan offers a daily cash benefit for every day the insured is hospitalized. It was specifically designed to protect the elderly from the rising costs of hospitalization, and offers coverage for up to 80 years of age. Keep your grandparents happy, healthy, and worry-free by signing them up, and they’re sure to be more grateful than words can say.
For more financial tips, check out this article on the right time to invest.