Imagine this: A couple has shared decades of life together - raising children, supporting one another through challenges, and planning for retirement. Yet, when one spouse suddenly becomes unable to manage the finances due to illness such as dementia, the other may find themselves overwhelmed and unprepared. This happened to Kindred member Anne*. Her husband had always managed their finances, mostly because Anne didn’t really want to. “Finances just weren’t my thing,” she says. Then Anne’s husband was diagnosed with Alzheimer’s Disease.
A Shared Responsibility
For generations, it was common for one partner - often the husband - to manage the household finances. That may have worked in earlier stages of life, but it can leave the other spouse, often the wife, vulnerable in times of crisis. Financial understanding isn’t about a lack of trust – it’s a way to love and care for one another well into older age.
When both spouses are engaged in the family’s financial life, it builds resilience. It ensures continuity. And it provides peace of mind that, no matter what happens, one won’t be left scrambling to piece things together.
What Happens If the Financial Manager Becomes Ill?
Let’s consider a situation such as Anne’s where a husband has always managed the family finances, but is diagnosed with dementia. Suddenly, routine tasks such as paying bills, managing investments, and renewing insurance became Anne’s job. Without prior knowledge or documentation, Anne faced a mountain of decisions that she felt unprepared to make.
Sadly, this can also open the door to financial abuse or fraud. Older adults who are unfamiliar or lacking confidence with their finances are far more likely to be a victim of family members or acquaintances with ill intentions[i]. Thankfully, Anne’s son supported her through the process of taking control of her finances, but others aren’t always as fortunate.
Key Areas of Financial Knowledge
To avoid this kind of situation, both spouses should have a basic, working knowledge of the following areas:
- Banking and Accounts
- Locations and numbers of all bank and credit union accounts
- Online banking credentials (securely stored)
- Automatic payments or deposits (what’s scheduled and when)
- Bills and Monthly Expenses
- Utilities, subscriptions, credit card payments, and other recurring expenses
- How and when payments are made
- Loans and Liabilities
- Mortgage details
- Car loans, lines of credit, or other debts
- Investments and Retirement Accounts
- Account managers and institutions
- Registered accounts (RRSPs, TFSAs, RRIFs) and non-registered investments
- Pensions or annuities and how they are accessed
- Insurance
- Health, life, home, vehicle, and long-term care insurance
- Policy numbers, contacts, and payment schedules
- Legal Documents
- Wills and Powers of Attorney
- Who has signing authority and where the documents are stored
- Tax Information
- Location of past returns
- Accountant or preparer contact details
- Digital Access
- A secure system for passwords and access to important accounts
Preparing in Advance: Practical Steps
Anne wishes she and her husband had done things differently. Preparing doesn’t require financial expertise, just intentional communication and a few good habits:
- Have regular “money dates.” Sit down monthly or quarterly to review finances together.
- Create a household financial binder or digital file. Include copies of statements, policies, and account details.
- Review and update legal documents. Ensure Powers of Attorney and Will reflect current wishes.
- Use a secure password manager. Make sure both parties know how to access it.
- Work with trusted professionals. A financial advisor or planner can walk through your financial picture with both spouses present.
Where to Turn for Support
You're not alone in this journey. Here are some sources of advice and support:
- Your credit union. At Kindred, we believe in walking alongside our members through life’s seasons. Our advisors offer values-based financial guidance with our members best interests at heart. Anne was able to speak to their financial planner, Angela Garland. Angela explained all of the couple’s investments to Anne and helped her make investment decisions that aligned with her values.
- Legal professionals. They can help prepare essential documents like a Power of Attorney or a Will.
- Family or faith community. Trusted friends or community leaders may offer helpful wisdom or connections. Anne’s son has been a huge support to her.
- Government and non-profit resources. Look for caregiver support groups or elder financial planning services in your region.
- Books and courses. Some excellent online resources cater to financial literacy for those later in life or new to managing money.
A Final Word:
Being financially prepared is a beautiful expression of care. It’s not just about money - it’s about safeguarding one another’s dignity, independence, and wellbeing. When both spouses understand the family finances, they build a foundation of trust and resilience that can weather life’s storms. Anne feels better able to care for both herself and her husband now that she has a fuller understanding of how their finances work.
If you have questions about your finances, book an appointment with one of our team members today. By taking simple steps, you can ensure that both partners are prepared for life’s twists and turns.
*Anne’s name has been changed to protect her privacy.
[i] https://www.canada.ca/en/employment-social-development/corporate/seniors-forum-federal-provincial-territorial/financial-abuse.html