There is an old adage that demonstrates that prevention is better than cure. Curing often comes when things have gone wrong. Health approaches can delay or even prevent future financial decline for the older adults. The basic approaches in a brief sense include the avoidance of risky medications and otherwise reduce the risk of Alzheimer’s and cognitive impairment. It is however a good thing to note that seniors and families should pursue some financial prevention tactics aside from the health related ones. Some of them include the following:
- Keep learning
In as much as cognitive decline is real, other research suggests that older adults with higher levels of financial literacy are more likely to have higher wealth levels. This therefore means that understanding the concepts of investment risk and the stock market is associated in the realest possible way, with the ability to build and preserve wealth. Financial management therefore requires knowledge.
- Get financial help from your adult children
Adult children of an older adult can often play a useful role in helping their older parents in managing their finances as they age. It’s important to incorporate the support of one’s children before experiencing a crisis or cognitive decline. This will ensure that they know the basics and primary information such as where to find account information if they need to. Talking through plans and informing them of the wishes you have, you could even write out an overview of how you want to manage your finances as you age.
- Consider setting up a business
Before getting to that age when you start losing financial predisposition, you might want to consider setting up a business that will later on add to your income once you have retired. This will also serve as a measure of professional and creative satisfaction even when you stop working at your day job. In fact, research has shown that self employment or rather having your own side business particularly at the midlife stage, grows the kind of support that is available to older adults who are also entrepreneurs.
- Teach your grandchildren about finances.
The older adults can play a paramount role in teaching their grandchildren about the value of financial intelligence. In fact, many young people say they are open to talking about finances with their grandparents, but only a small percentage actually have those conversations. Still, most grandchildren say their grandparents do influence their financial habits.