If you’ve followed my blog and interviews, you know that one of the most serious challenges I faced during my mother’s health/life crisis last year was getting a handle on my mother’s financial affairs. In fact, it was next to my top priority, following mom’s health.
As I was trying to wrap my arms around her overall financial situation, I was surprised she did not use Direct Deposit. She knew exactly what day each check would arrive, and spent a good deal of time arranging rides to the bank. One of my first steps was to call each of her financial institutions and request Direct Deposit.
Why is Direct Deposit important for the elderly?
- Many elderly do not retrieve their mail from their mail boxes on a daily basis. Some reasons include: Illness, bad weather, lack of mobility, hospitalizations.
- They wait on a caregiver or neighbor to pick up their mail.
- Mail theft from home mailboxes is a common problem.
- Lost mail and the trouble/cost of following-up on check replacement is stressful and time-consuming.
According to the U.S. Department of the Treasury’s Financial Management Service,
- “Only 52 percent of caregivers receiving Social Security payments on behalf of the person they care for say they use direct deposit.”
- “Last year alone, more than 480,000 Social Security checks were reported lost or stolen and had to be reissued, while $64 million in Treasury-issued checks were fraudulently endorsed.”
If your aging parent receives Social Security checks through the mail, there is an informative and easy website to use in getting your parent on Direct Deposit. It allows your parent (or you, as their representative) to
- Sign up for direct deposit of Social Security, SSI or VA Compensation and Pension payments. You can sign up online, by phone or though mail.
- If you have no checking account, you can choose to sign up for a prepaid debit card to which your Social Security and SSI payments will be credited.
Another point to keep in mind is that many of us live in areas of the country regularly impacted by hurricanes, tornadoes or fires. Having direct deposit will truly provide our aging parents and ourselves (as caregivers) peace of mind that the monthly checks will be deposited in our chosen bank on a set day, regardless of what is happening in the personal lives of our parent or ourselves, or in the world around us.
So, do yourself and your parent(s) a favor. If they are not on direct deposit, start the process now by visiting this site:
(Source: U.S Department of Treasurey’s Financial Management Service)
{ 2 comments… read them below or add one }
Great suggestion. I also got my father set up with bill pay online (with his permission) in case I have to handle payments from a distance. He already has most regular bills on auto-withdrawal which helped a lot when he had to stop driving.
Planning ahead relieves everyone’s stress!
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