Sunday, January 16, 2011

Things They Should Invent: client-directed bank account flags

Being childfree with poor people skills and centenarian ancestors, I'm operating the assumption that I won't have anyone to help me in the last couple of decades of my life. So I've been watching how my parents are helping my grandmothers, and trying to figure out how I will do those things independently in my old age, even if I'm losing my faculties at the time.

One of the things my parents help my grandparents with is managing their money, so I've been thinking about how I could make my money manage itself as I deteriorate mentally. It would be easy enough to set up automatic deposits and payments, ensuring that I don't have to remember to pay bills and don't get myself evicted through my own forgetfulness. But how can I keep myself from spending too much money?

Currently, I don't use a tight budget where I'm only allowed to spend $X on clothes and $Y on food etc. My system is I'm allowed to spend money on whatever I want, but the balance of my primary account has to stay within a certain range. If it goes below the bottom threshold, I have to stop spending on everything but food and immediate necessities (and budget carefully on those) until it goes back up into the acceptable range. This system works well for me.

What I'd like to be able to set up to duplicate this when I'm older is have the bank's computer alert me when my account balance goes below the bottom threshold. Using today's technology as a general example, it could be a smartphone app. You get an alert when your balance gets too low, and maybe a little red light glows on your phone to remind you. If you're spending money uncharacteristically, something could pop up pointing out why this is uncharacteristic and asking if you're sure. (For example, if you're grocery shopping today even though you did a full grocery shop yesterday, this system would catch it.)

This would all be completely optional, of course. The nature and thresholds of the alerts would be entirely of each person's own choosing (and maybe they could have some presets for people who are already unable to make sensible choices for themselves.) The responses to crossing the threshold could also be customized: maybe it just alerts you, maybe it prevents you from spending that money for 24 hours, maybe it alerts your caregiver, maybe it makes you talk to a bank representative.

Beyond the problem of people who are losing their faculties, this could also be useful for people who have trouble with financial self-discipline. For some people, a little glowing light reminding them that they're running low might be enough to stop them from making that impulse purchase.

6 comments:

Lorraine said...

Whatever tool will be used to manage money in the mid 21st century will be some yet-to-be-invented technology which will be as foreign to you as your computer is to your grandparents.

Probably the most important asset protection practice for seniors is avoiding salescritters and other con artists.

impudent strumpet said...

The technology will only be foreign to me if I choose not to keep current.

laura k said...

"The technology will only be foreign to me if I choose not to keep current."

The whole "technology is foreign to the elderly" concept is beginning to sunset. People who grow up in a world of rapid technological change will continue to incorporate new technologies into their lives.

And right now, millions of seniors already use the internet. I wouldn't assume that computers are foreign to the grandparents of people young enough to still have grandparents.

impudent strumpet said...

My own parents will be seniors in a few years, and they're current.

And I'm thinking you don't even have to be completely up to the moment current to be able to make use of technology. Someone who was current in 2001 but hasn't updated their skills since could still pretty much use the internet of 2011. They might not be able to make an informed decision on which smartphone to purchase, but they could muddle their way through it if you handed them one and got them started. They might not be able to keep their facebook security settings optimal, but they could friend people and post things.

laura k said...

That's true. Just like most of us don't feel the need to learn every bit of new technology now - just the ones that will improve our lives in some way.

As we age it takes a lot more practice to get a new skill into long-term memory. If you learn to drive in your 30s, it's a lot harder for it to become natural than if you learn to drive in your teens. And the older you get, the longer it takes. So we should all vow to give our older selves a lot of time to practice with the new technology - a lot of hanging out time.

Lorraine said...

Facebook, of course, will say your security settings are sub-optimal if you don't give them your phone number.