Daily Money Managers

Dear Savvy Senior

I was home visiting my 82-year-old mother last week when I discovered that she has missed paying some of her bills over the past five or six months. My dad always used to take care of the family money matters, but he died last year. Now mom has to handle everything and is really struggling. Do you know of any options that can help her keep up with her money and bills? I live 400 miles away and could use some help.

The Spending Patrol

Dear Spending,

There’s actually a growing industry of financial caregivers today, called daily money managers (DMMs), who specialize in helping seniors manage their day-to-day personal finances. It’s estimated that more than 500,000 older Americans need help with their financial affairs, many of whom rely on nearby family members for help. But a DMM can be a good solution for those who don’t have that option. . Here’s what you should know.

Daily Money Managers

A DMM is like a personal financial assistant who provides a wide range of services. Depending on your needs, they can sort the mail, pay the bills, deliver bank deposits, balance the checkbook and help maintain a budget. They will even monitor bank statements to make sure no one is dipping into your funds. A DMM will also keep track of medical bills and insurance forms and organize your tax documents. And if need be, they can even negotiate with pesky creditors and financial institutions to help clean up your credit.

Finding a DMM

The best way to find a good DMM is to get a referral from someone you know and trust, such as a friend, relative, lawyer, accountant, or doctor. If you still need assistance, here are three resources that can help you:

• Area Aging Agency: Call (800) 677-1116 to get your local aging agency phone number.

• American Association of Daily Money Managers (AADMM): Visit www.aadmm.com or call (301) 593-5462.

• National Association of Professional Geriatric Care Managers (NAPGCM): Visit www.caremanager.org or call (520) 881-8008. About 20 percent of geriatric care managers provide daily money management services.

Hiring a DMM

Once you’ve found a few potential candidates, make sure you interview them to find the right fit. Daily money management is not regulated by any state or federal organization. So don’t hire anyone without doing some homework and asking lots of questions. Here are some things to check into:

Ask for credentials and verify them. For example, do they belong to the AADMM or NAPGCM?

Are they willing to involve another person in their work, such as a lawyer, accountant, or family member?

Ask for references from clients and at least one professional—and check them out carefully.

If you are going to allow someone to sign checks, be sure the person is bonded or has liability insurance.

What do they charge? Most DMMs charge between $30 and $100 an hour depending on where you live and the complexity of your financial situation. Most DMMs also make additional charges for their travel time and for out-of-pocket expenses such as postage stamps and long distance calls made on your behalf. In most cases, you should expect to pay for at least four hours of assistance per month. Low-income seniors might qualify for reduced or free services. Call your Area Aging Agency for details.