Additional menu

CarePlanIt |

We help seniors & their families navigate aging issues

Money Emergencies

seniors spending too much

Carmen and I have learned financial challenges usually involve two issues. One is budgeting: knowing what you have and what you spend. Two is spending. As Captain Obvious would say, spending is all about spending.

Budgeting

Financial management involves knowing what you have, what you spend, and having a household budget. It’s household budgeting 101. The biggest issues around budgeting are housing. Assisted living and dependent living options are expensive. Assisted living runs between $1,500 and $10,000 a month. Dependent living runs between $10,000 and $30,000 a month.

Budgeting is critical for seniors that want their money to last in retirement. Without budgeting most seniors quickly lose track of their spending habits.

Overspending

Spending becomes a very complicated issue for seniors. Once seniors stop earning money, whatever they spend takes away from what they have for the future. Unlike their younger selves, a senior’s spending is tied to their ability to future spend. When a senior spends too much, their retirement savings may run out.

And spending is really complicated for seniors. For most people, spending is fun and entertaining. We enjoy spending. Look at the issues below.

  • Seniors have often spent a lifetime helping others. They've helped their children and grandchildren. They have a history of spending on Family and the joys this bring.
  • For many parents, spending makes them feel like the parent. For example, the parent always pays for the child. Changing this behavior makes them feel less adult-like, less parental.
  • Many seniors spend for excitement. The most common areas are gambling and collectibles.
  • Guilt is also a motivation for senior spending. Many children and grandchildren pressure seniors to pay for things like cars, homes, and rehab. Many will tell the seniors that this is the only way to get a job, keep safe, or get healthy.
  • Another complicated issue is when seniors have sacrificed and saved for their retirement and now want to enjoy their retirement. Often times this enjoyment involves spending a lot of money. Lots of seniors have retirement visions of travel, boats, and recreational vehicles.