There is an old saying in China: "Raising children to prevent old age", which has been a tradition of the Chinese nation for thousands of years and is also the view of most people on providing for the elderly. However, with the implementation of China's family planning policy and the change of people's concept of fertility, the "421-structure family" is becoming more and more popular, which means that a young couple has to support four old people besides their own life and children's education, and the heavy burden can be seen. With the change of family structure, the traditional concept of "raising children to protect the elderly" has been strongly impacted, and more and more elderly people no longer expect to rely on their children to provide for the elderly. In order to make the life of the elderly more secure and quality, the elderly should change their ideas to financial management for the elderly.

for the elderly, financial management for the elderly means to enrich their wealth through some financial investment methods and provide a strong guarantee for their old age. It can be said that financial management for the aged is a long process, and changes in social and economic environment, such as inflation and rising prices, will directly affect the amount of retirement pension to be prepared in the future. To give a simple example: if a couple's living expenses are 31,111 yuan a year now, if the inflation rate is 3%, then if they want to maintain their current quality of life after 31 years, their living expenses will become 72,811 yuan a year. If you live for 25 years after retirement, you will need 1.82 million yuan. Although social security, retirement wages, etc. can solve some of the old-age expenses, but a larger proportion still have to be borne by themselves.

Therefore, the elderly should adhere to the following principles when managing their finances: 1. Enhance their understanding and be psychologically prepared. At this stage, the average life expectancy of men in China is 69 years and that of women is 74 years. With the development and progress of society, the average life expectancy of people will continue to increase. Some experts say that the number of elderly people over 81 years old is increasing at an average annual rate of 4.6%. The elderly are in a high-risk period of life in terms of economy, medical care and life care, so it is very important and necessary to prepare the funds and adequate protection for the elderly as soon as possible and make a retirement plan for themselves. 2. Make a long-term plan, the sooner the better. The amount involved in financial management and old-age care is not small, and it cannot be done overnight. In addition, the cost of old-age care is rigid. Unless you are willing to reduce the quality of life, you must have a long-term plan. According to experts' analysis, it will be more difficult to calculate the term of financial management according to compound interest in less than 2115, and the earlier it is operated, the more labor-saving it will be. 3. Make a reasonable plan according to the actual situation of the elderly. Each elderly person's specific situation is different. It is necessary to make a reasonable financial plan based on his own financial resources, energy and expected living standards, and must not be blind. 4. Reasonably diversify investment and reduce risks. The purpose of investment and financial management for the elderly is to better provide protection for their later life. Therefore, it is necessary to prevent new risks in the process, which requires the elderly to rationally diversify their investments and be cautious about investment methods that are not sure or have great risks.

In addition, there are four taboos in financial management for the elderly: 1. Avoid greed and petty gain. Some swindlers deliberately leave money and things on the roadside to lure the elderly into taking the bait, and then cheat money on the grounds of equal share. The reason why the elderly are deceived is nothing more than greed and petty gain, and as a result, scammers have an opportunity. You know, there is no such thing as a free lunch, and ill-gotten gains are not allowed. 2. Avoid coveting high profits. In recent years, illegal fund-raising is not uncommon, and many elderly people who are eager for money are ruined. Some lawless elements usually take advantage of the psychology of the elderly who are greedy for high profits, claiming that the interest rate is as high as 21%-31% to lure personal funds into shares. Most of these are traps, so be careful. 3. Avoid blindly guaranteeing others. Some elderly people often provide economic guarantees for others because of their face, and lend other securities such as savings certificates and bonds to others to handle small mortgage loans in banks. As everyone knows, once the borrower is unable to repay the loan after the loan expires, the bank will withdraw your securities according to law to recover the creditor's rights. 4. Don't trust others, and be wary of scammers using expired, invalid, non-convertible or forged foreign currencies to deceive by means of "collusion performance". If the elderly encounter someone claiming to sell foreign currency, they must first go to the bank for identification before they can exchange it. Don't suffer huge losses because of greed for small profits.

The elderly must manage their finances according to their abilities

The insurance of commercial insurance products has established another guarantee for the elderly in their later years, which is enough to meet the basic living expenses of the elderly in China. However, in order to make themselves better off, the elderly can continue to invest their funds in other fields while considering their own economic strength. At present, there are various investment methods available in the market, such as bank deposits, treasury bonds, stocks, corporate bonds, fund warrants, etc. Each method has its own characteristics. The elderly should choose according to the actual situation, but they should be carried out in accordance with the principle of keeping and increasing the value according to their capabilities.