December 9-15, 2009
THE MICHIGAN CHRONICLE Page B-2
Tips for talking about
Getting organized From page B-1
over your money is to develop a Your banker can help you not have pre-payment penal-
finances with elderly
budget,” said Warren Morgan, set this up. ties.
a financial center manager at
• Consider debt consolida-
Fifth Third Bank’s downtown
Set up a Goal Setter Sav-
tion. If you are unable to
Detroit banking center. “Add
ings Account. “This type of
parents
pay off credit cards in full
up all your monthly expenses
account makes saving fun,”
each month, you may want
and compare them with your
Morgan noted. “We help cus-
to transfer debt from sev-
monthly take home pay. If
tomers structure a savings
eral cards to one with a low
By Steve Moore
your expenses exceed income,
program to meet a specific
introductory interest rate
Vice President,
you should consider cutting
goal by a specific date. Money
or take out a consolidation
Investment Management & Trust
back on spending, consoli-
loan. To learn more, he en-
is automatically withdrawn
dating debt or even taking on
courages people to discuss
from their savings or check-
Eventually, there comes a time when the
another job.” He encourages
this option with their banker
ing account each month and
parents who doled out your allowance need
people to talk to their banker
or read “Make debt a thing of
deposited into this account.
help managing their finances. Unfortunately,
for more options relevant to
the past.”
When customers reach their
this role reversal can make both parties feel
their particular situation.
goal, the bank matches the
uncomfortable. Parents may feel reluctant to
Morgan also recommends
amount of interest earned.”
give up control, and adult children may hesi-
setting up an emergency
Visit www.53.com for more de-
tate to infringe on their privacy.
fund equal to two months of
tails on this account.
“There is no template to follow when dis-
income. “One little emergency
Consider employee ben-
cussing parents’ finances,” said Carol Sch-
She also encourages children to approach
can throw off the budget. But
efits, such as a health savings
neider, a trust officer with Fifth Third Bank.
these topics in a non-threatening way. “You
when you have an emergency
account (HSA) or a flex-spend-
“Each family is unique and has its own family
could say you were thinking about getting life
fund, your budget remains
dynamics.” However, she does offer tips on
insurance and ask your parents if they have
intact even when the car
ing account. “HSAs are help-
how to broach this delicate topic. For starters,
policies and who their agents are. Parents may
breaks down,” he said. He also
ful for people who have a high
she encourages families to begin these discus-
feel more comfortable sharing information
mentioned that it is important
deductible on their health in-
sions sooner rather than later. “All too often,
when they know their judgment is respected,”
to rebuild the emergency fund
surance,” Morgan explained.
financial matters aren’t discussed until there’s
Schneider says. “You may not get all the infor-
after it is tapped.
“Flex-spending accounts take
a crisis, and this makes an already stressful
pre-taxed income and put it
mation you need at once, but it’s a good way to To help curb spending
• Pay extra on your mort-
situation worse.”
start the dialogue.” and maximize saving, Morgan
gage. You can reduce mort-
in a special fund, which can
are, medica-
recommends several strate-
gage costs substantially by
be used for childc
In an ideal world
Consider wealth-planning services tions and copayments.” He en-
gies that can make a posi-
paying one extra mortgage
Schneider encourages grown children to
courages people to ask their
It is enormously helpful when parents sit
tive impact on your monthly
payment every year. This is
budget and your overall fi-
a great way to save on inter-
human resources manager for
down and “open their books” by providing a
look into wealth planning services, which
nancial success. For example:
est expense over the life of
details.
complete list of all their assets, their values
gather the parents’ financial documents and
and where they are located. This may include
assemble them into a comprehensive portfolio.

the mortgage and pay the
Morgan also recommends
savings and checking accounts, retirement ac-
This can include a list of all their assets, their
• Pay monthly bills on time
loan down sooner. “Another
talking with the financial
counts, and titles to the house and cars.
value, where they are located and how they are
and in full. This saves on
option is to pay $100 extra
professionals at their bank.
titled, even if they are held at other financial
late fees and finance charg-
every month, which can also
“Don’t be afraid to come in.
It is also beneficial when parents share institutions. In some cases, adult children may
es, which can add up to hun-
eliminate payments and save
copies of their will and other estate planning
We’re here to help, and no ap-
want to encourage their parents to simplify by
dreds of dollars and nega-
on interest.” To calculate
documents and provide a list of those who
pointments are necessary,” he
keeping all their financial assets at a single in-
tively impact credit scores.
the benefit of making extra
advise them on financial, legal and health care stitution.
said.
To make bill paying easier,
payments for your personal
matters. Also, knowing about potential family
Morgan recommends setting
situation, visit Fifth Third’s
For more tips organizing
wealth transfer can help adult children plan
Planning for retirement is a never-ending
up an online bill payment
extra mortgage payment cal-
finances, stop in any Fifth
more effectively for their own retirement and
task, and Schneider reminds families that some
system, which pays bills au-
culator. Before making extra
Third banking center, contact
children’s college educations.
banks can review parents’ portfolios. Banks
can also assist with determining whether cur-
tomatically from your sav-
payments, it is important to
Fifth Third at (866) 475-4201
ings or checking account.
make sure your lender does
or visit 53.com.
In the real world
rent strategies are taking advantage of tax plan-
ning options.
Unfortunately, this scenario is seldom the
“With family members often scattered across
case. Parents are often reluctant to open up
the nation or even around the world, it can be
about their financial matters.
difficult to have these discussions in person,”
Schneider noted. “However, distance shouldn’t
“I encourage children to approach this sub-
prevent adult children from having these dis-
ject at a comfortable time, preferably not at
cussions. When our older customers are will-
large family gatherings when there’s lots of
ing, we are very happy to discuss these matters
commotion,” Schneider says. She also encour-
with other family members over the phone.
ages families to plan for these discussions and
prioritize topics by importance. Is it long-term
For more tips on how to discuss financial
care insurance that’s most important or the
issues with elderly parents, contact Fifth Third
need to update beneficiaries on accounts?
at (866) 475-4201 or visit 53.com.
Holiday spending From page B-1
and plastic at home, and trudge out to the keeping your savings separate from your every-
shopping scene to compare prices and value. day money.
Prices vary across the board from store to store
depending on the set point of prices, discounts
If you have to use you credit, then use it
and other promotions. In late December prices
wisely. The best recommendation is to use
are better, but the selection is not always so
only one card for your holiday purchases. The
great. Also there are many discount retailers
spending on one card is easier to keep track of
that carry brand name, bargain priced products. than those of multiple cards.
Once you have all of these decisions made,
then you’re ready to make those purchases.
Keep a log of your credit card spending, sim-
ilar to a check register. Every time you make a
Decide how you are going to pay
purchase, record it in your log.
The best method to avoid the holiday woes
As you plan your holiday spending, keep
is to use cash and leave those credit cards at
your perspective of the true meaning of the hol-
home. Fifth Third Bank makes this even more
idays. The most meaningful gift you can give
convenient with a Goal Setter Savings Account.
to someone is one that comes from the heart.
It was created to help put this advice into prac- The best gift you can give yourself is not being
tice by helping you to save a little bit at a time, burdened with debt into the next year.
Charitable giving
From page B-1
“All gifts, large and small, donors may simply contribute
are greatly appreciated by to an organization’s annual
charitable organizations and fund, which helps pay utilities
the people they serve,” she and rent.
continued. “We also find that
many charitable organiza-
For some older adults,
tions appreciate volunteers
making charitable donations
— people who can donate
may be a way to reduce estate
their time and provide hands-
taxes. “When people leave any
on help.”
portion of a retirement plan to
a charity, that charity gets the
Are you ready to give? full value of the gift; they don’t
When people are inter-
have to pay taxes on it,” Elliott
ested in making charitable
said. She says life insurance
donations, Elliott encourages
policies can also be included
them to look for a cause that
as a charitable gift. To learn
is important to them: “We
more, she encourages people
often help people research or-
to speak with their insurance
ganizations and decide which
agent or a financial profes-
ones meet their personal ob-
sional.
jectives.”
of its mission and how it uses
At Fifth Third, The Founda-
financial donations. “Charities
tion Office assists with chari-
When selecting charities,
often need people to staff spe-
table giving in several ways. It
The Foundation Office can
cial events, serve on commit-
oversees the Fifth Third Foun-
also help potential donors
tees or do office and adminis-
dation and its grant-making
make sure the organization
trative work,” she said.
in a 14-state region. It serves
is in good standing with the
as a trustee on some of the
IRS and make sure it is repu-
How much should you give?
trusts on which Fifth Third
table by reviewing websites,
When considering a finan-
has been named the sole deci-
databases and checking with
cial donation, Elliott encour-
sion-maker. It also serves as
the Better Business Bureau. It
ages people to talk with their
the back office administrator
may be more difficult to locate
financial professionals or tax
for a number of family trusts
information on smaller organi-
advisors to come up with an
throughout the country.
zations.
amount that makes sense for
In some cases, Elliott en-
them. She also encourages
For more information on
courages people to volunteer
people to ask organizations
charitable giving, contact Fifth
with an organization to get a
if they have any causes that
Third at (866) 475-4201 or visit
more complete understanding
need special funding. If not,
53.com.
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