Everyone wants to spend less, especially on our everyday expenses. With the cost of living going up, this is more important than ever. Unfortunately, our elderly relatives can often have extra worries on their plate, such as pensions and care costs. Sometimes, health issues may also make it more difficult for them to manage their money. With that in mind, here are 10 ways you can help your older relatives save money.
1. Know How Much Money They Have
Whilst you do not necessarily need to know the exact amount of money they have or how much they are receiving, it is important to encourage your elderly loved ones to keep track of their finances. Knowing how much money they will have every month is the first step to controlling spending, which in turn saves money.
Income is likely to include both private and state pensions. State pension currently pays £185.15 per week; private pensions will pay out depending on your loved one’s contributions. Your older relatives may also receive certain benefits, such as Personal Independence Payment (PIP) or the Bereavement Support Payment.
Once your loved one knows their monthly budget, it becomes easier to identify where savings need to be made.
2. Cut Down on Utilities
Research has shown that UK citizens waste £4.4 billion every single year simply by leaving their lights on. Furthermore, many household appliances consume electricity even when not in use. Whilst many of your items may be left in standby mode, according to the Energy Saving Trust this can contribute to up to 16% of your electricity bill.
What, then, can your loved ones do to save money? Unplug and turn off their devices when they are not in use. Whilst some appliances such as fridges and freezers need to remain always plugged in, switching off the TV, unplugging the microwave, and charging mobile phones before bed instead of overnight could shave pounds off your loved one’s bills.
Interestingly, if your loved ones use Wi-Fi, they may notice an additional benefit to unplugging their microwave: faster Internet speeds. Because they share an electrical frequency, microwaves can interfere with Wi-Fi signals!
3. Change Providers
We can often find ourselves paying out extra for a service but not getting much in return. For example, on average British households spend £27.39 a month on Internet access, but your loved ones may be able to get faster speeds for less. This could be especially beneficial if they are not regular users.
Switching providers is equally beneficial for other bills, such as electricity and gas. They could also seek out a better deal on insurance.
The only provider you cannot switch is your water provider, as this is determined by your loved one’s region. However, they may be able to save money on water bills by cutting down on usage or requesting a water meter.
4. Avoid Credit Options
Nowadays, many companies offer credit options for making payments. This can often seem like a positive thing, as it breaks payments down into smaller chunks. However, credit comes with interest, meaning you will always pay more than if you paid in one lump sum. Instead, your loved ones should opt to save for things where possible; saving up could result in them saving money in the long-term.
By setting aside the money they would otherwise by spending as part of a “buy now, pay later” model, your loved ones will also be better prepared if unexpected bills pop up.
If choosing to pay by credit does prove necessary, make sure your loved one is getting the best deal. Use comparison websites to help them avoid the more extortionate options and encourage them to shop around when considering a “buy now, pay later” arrangement. Some sites may offer the same interest rates but with a lower base price; be careful, though, as sometimes these deals are too good to be true.
Be sure to check our guide on staying safe when shopping online.
5. Shop Elsewhere
Sometimes our loved ones can get so used to buying the same things from the same places that they forget to look elsewhere. Groceries are a regular cost in everyone’s lives, and sometimes we may not realise that we are spending more than we need to. The average weekly food shop costs over £60, so if your loved ones are spending more than this it may be worth cutting down on certain items or buying groceries from alternative chains.
You can use comparison sites like Trolley to look up the best deals. This information can then be used to save pounds on your loved one’s food shop.
The same applies to clothes, electrical items, and leisure items such as books. Whilst it is nice to treat ourselves, it is possible to do so whilst saving money. Your loved ones have probably used Google before, so encourage them to utilise the search engine’s shopping tab to find the best deal. There are also websites dedicated to finding the best deals on specific products, such as Best Book Price who compare shops across the UK to find the cheapest offer.
6. Switch to Public Transport
If your older relatives haven’t done so already, trading the car for the bus or train could be an ideal way to save on money. Chances are they do not travel as often as they used to, meaning the car could be sitting on the driveway for weeks or even months at a time without being used. Insurance, however, still takes it toll, as does road tax.
In England, older people can apply for a bus pass, which allows them to travel on buses for free. In Wales, it is available to over-60s. Other public transport discounts are available from various companies, allowing for massive savings on trains and – where available – trams.
It may also help keep your elderly relatives safe. 2020 saw a 9% increase in the number of elderly people killed on the roads. Often these can be connected to problems caused by age, such as slower reflexes or poor eyesight.
More Information: Older Drivers – Deciding When to Stop Driving
7. Track Spending
Of course, a major way of identifying where money can be saved is to look at where it is being spent. Sometimes your elderly loved ones may find that the money is there one second and gone the next. By keeping a log of how much money is being spent on what, older relatives can identify which bills stay the same every month, and what purchases they seem to make regularly – such as groceries.
An extra newspaper from the corner shop every day could soon add up. Similarly, automatic payments on things like Netflix subscriptions can be easily forgotten.
By writing down every payment, your loved ones will also be able to get an overview of how much they are spending in a month. This can then help them to plan ahead and save money.
8. Cut Unnecessary Subscriptions
Your elderly loved ones may have signed up for a streaming service, but how often do they actually use them? Sometimes, when we feel like money is okay, we don’t think to unsubscribe from services we haven’t accessed in a while. These companies keep making money from us every month even if we haven’t watched a show in weeks.
In fact, Netflix themselves have taken to deactivating accounts that have been paying for the service without using it. However, this only comes into effect after a year without use; this could still cost your loved ones more than £70 a year on Netflix's cheapest tariff.
As such, you should encourage your older loved ones to think about what they use regularly. If they do not read the magazines that arrive in the post or only ever watch the same two movies on Netflix, then they can save money by cancelling their membership.
Be aware, though, that some services include cancellation fees.
9. Reduce Treats
We all like to treat ourselves from time to time, whether it be a meal out or a weekend away. However, when trying to save money it can become necessary to reduce the regularity of these treats. Meals out can cost more than £20 per person for a three-course meal, and depending where you eat it can cost considerably more. Takeaways also add up, with the average consumer spending £451 a year.
Cooking at home is certain to help save money over time, as well as coming with physical and mental health benefits. If doing the cooking themselves is an obstacle for your loved one, why not invite them over for homecooked meals?
10. Power of Attorney
Perhaps the most direct way of helping your older relatives to save money is to be directly involved in their financial affairs. This can be accomplished by applying for a power of attorney. If your loved ones need support, but still retains mental capacity (defined by the NHS as “the ability to use and understand information to make a decision, and communicate any decision made”), then you should opt for an Ordinary Power of Attorney.
This document allows you to make decisions on their behalf regarding financial and – where specified – medical matters. This can help to take the pressure off your elderly loved one, especially if they are unwell. Money can be a major stressor for older people, and a Power of Attorney could make it much easier to save money on bills.
In some cases, your older relative may be concerned that they will lose their mental capacity. An Ordinary Power of Attorney does not cover this; your loved one will need to apply for a Lasting Power of Attorney.
More Information: Plan Ahead – Power of Attorney
Personal Alarms from Careline365
Whilst a Careline personal alarm cannot reduce your loved one’s bills or track their spending, it can provide extra peace of mind around the home. Our life-saving alarms meet a wide range of needs, ensuring your loved ones are always in safe hands.
For more information on our alarm service, check out our simple guide. If you have any questions, please do not hesitate to call our friendly team on 0800 101 3333.
Editor's Note: This article was updated on 7th April 2022 to reflect current information.
