Financial planner/advisor for someone financially illiterate?

I've got a family member that is terrible with their money. They own a house outright and don't have any debt other than a few grand of credit card debt. They are working but are finding it impossible to make ends meet due to their spending habits

• Not looking what groceries are costing and not buying generic brands or buying seasonally
• Buying way too many presents, both randomly and for birthdays/Christmas
• Using toll roads that are only marginally faster than free roads
• Paying for parking
• Wasting lots of electricity and hot water
• Etc

You get the picture.
Obviously I know what's wrong and how it can easily be fixed, but I can't get it through to them.
Their retirement is going to come up reasonably soon and their car is 15 years old, so I really think they should try and make changes now, or they'll be in real dire straits quite soon.
Any suggestions? Are there any financial planners/advisors that specialise in something like this? Obviously but not looking for advice on how to invest, but rather getting my family member to live on a pension budget.

I'm somewhat pessimistic about the outcome, but I still want to give it a shot.

 

Do they want to change?

 

MYOB - mind your own business

 

They do recognise that there's a problem and keep talking about adding to the minor amount of money that I'm holding for them (from an inheritance, it was their idea not mine), but instead keep asking me to give them some of it.
I don't think they quite grasp the situation and implications completely.

If I do, it might well become my problem down the road.

 

To me it just sounds like they are living the way most people live!

How close to 67 are they? How much do they earn a year, prextax?

I don’t think you have a hope unless they are seeing a problem themselves. However, places like the Salvation Army, Anglicare etc do offer financial counseling.

Citizens Advice Bureaus used to as well - don’t know if they are around any more?

If the worst happens, they can downsize to pull in some cash.

 

If they arent taking out consumer debts, though, just living off a pension with a paid off ppor isnt such a bad outcome.

what do you want them to be? Investors?

or just that you dont think they are spending wisely enough?

 

Can they access EAP (Employee assistance programs) via their work? EAP assistance can include Financial assistance with a Financial counsellor.

 

Do they smoke or gamble?

 

Fast cars & faster women?

Not sure about what services organisations like 'my budget' etc provide but it will come at a cost.

 

Commonwealth Financial Counselling | Department of Social Services, Australian Government

Commonwealth Financial Counselling services are delivered by community and local government organisations to help people in personal financial difficulty to address their financial problems, manage debt and make informed choices about their money in the future.

These services are voluntary, free and confidential, and can be accessed through:

• face-to-face meetings;
• the National Debt Helpline on 1800 007 007 (calls from public phones/mobile phones may be timed and charged at a higher rate); or
• by visiting ndh.org.au(link is external).

 

Would they qualify for something like this? MoneyMinded | Brotherhood of St. Laurence

Sorry that's the link to learn how to be a trainer for it. Let me try and find the link for how to be a participant

Financial Empowerment & Resilience Network (FERN) | Brotherhood of St. Laurence
Saver Plus | Brotherhood of St. Laurence

 

Its important to understand the difference between financial planners and financial counsellors.

Financial planners sell regulated financial products and aligned advice.
A financial counseller does not deal with financial products but often supports credit and debt management etc.
They are nothing alike. Think of financial planners are for wealthy people and counsellors are for the other end of the scale.

There are now firms like My Budget who fulfil a gap in the market. eg Salvo's and Brotherhood of St Lawrence provide financial counselling services for its clientbase and personas socially disadvantaged but MyBudget do so commercially and provide "managed support" for financial budgetting to first address debt and then savings and planning outcomes. Someone in their 60s probably wont change now.

 

Thanks everyone, lots of suggestions, I'll compile them and then go through it with the person in question to see if they're willing to consider any of those avenues.

I'm not sure what exactly drives them, but I'll have a think about it, thank you, that may be useful to consider!

You're probably right, we're the "weird" ones, not living hand to mouth!!!

They're less than 5 years from 67 and while I don't know the exact income, it would be a little above minimum wage, but not a huge deal.
There are some added complications that would make downsizing difficult, as well as I'm sure that they'd see this as a massive failure. Basically I'm trying to do something so that they won't need to lose the house.

They're seeing the problem, but kind of wishing it away and hoping that ignoring it will do.
Thanks I'll check out the places you mentioned!

I don't want them to be an investor, I just don't want them to be shocked by the amount they get from the pension, burn through what little super they have in a year or two and then lose the house.
So my thinking is if they adjust to a level near the pension before retiring, this will make the transition much easier and might even mean that they're able to save a minor amount of money by the time they retire.
That's the ideal outcome, but I'd take anything.

Awsome, thanks! If they start up again in the next 12 months or so, that would still be very useful.

Yes, a single person and I would "have" to top them if they don't change their lifestyle. While I don't want to pay say $10k/year to them, that's not actually my main concern. My main concern is how this would change the relationship for the worse. This person would feel incredibly guilty if they were "a burden" on us!

Quite possibly, I'll check! Thanks!

No, though they buy $30 of scratches for every family member's birthday, which I think is silly, but if this was the only silly financial thing they did, it would be okay.

No fast cars or fast women, in fact on the face of it, there isn't really one thing that you can point at and say "stop that!", it's just a whole attitude of careless/thoughtless treatment of money.

I'd really prefer if they learnt how to fish, than get sent fish by My Budget, but I guess it's always an option.

Awesome (and hilarious given your username and the fact that the comment above yours is about fast cars and faster women)!
This looks like it could potentially be a good fit!

Thanks very much, these look like they've got potential too!

Yes, I know it will be difficult and most likely it'll fail, but the thing is contrary to the saying, you can teach an old dog new tricks, so I'll still try.
It definitely sounds like what I'm after is a financial counsellor.

 

I hope these old folks appreciate what you are trying to do for them.

This part is a joke - don't take it seriously.
Just cast them out onto the street. Feed them to the dogs.

 

Pretty much. I am convinced everyone has similar or at least one in their family

They tend to land on their feet. We live in Australia don’t we.

 

As they are only 62 years old, I suggest the solution is for them to work longer instead of retiring at 67 - lots of people do that. And lots of people prefer it that way.

I think you might be underestimating them - if they need to downsize, then they may be happy to do that rather than ask you for a loan and ‘be a burden.

They can still have a house - just a smaller one…

 

good point downsize

……. But we forget many live on old aged pension, no choice, we are number 3 for best old age pension in the world.
Dont u love Australia