Although it may be difficult to imagine at this point in your life, there may come a time when organizing and paying your bills becomes a difficult task. Even now, it may feel overwhelming to try and keep up with the inflow of financial paperwork that needs to be organized, paid and filed on a regular basis.
This is where a daily money manager can be helpful and a valuable addition to your “team.”
What is a Daily Money Manager?
A daily money manager (DMM) is a professional who helps people with routine financial matters like paying bills, budgeting and organizing financial paperwork.
For many older adults, using a daily money manager can be greatly beneficial. It can mean the difference between having bills, including taxes, paid on time and racking up late bills or worse. It can also save people a tremendous amount of stress knowing that a trusted person is managing your daily financial matters.
Most daily money managers have a business or social service background. They typically also have at least a bachelor’s degree.
Some have the designation of certified daily money manager (CDMM) certification from the American Association of Daily Money Managers (AADMM). In order to be a CDMM, one has to have worked for over one thousand hours as a daily money manager in the last three years, undergo a background check and pass a rigorous exam.
What Specific Tasks Can Daily Money Managers Help With?
Daily money managers typically assist clients with a variety of financial related tasks, including:
- Reviewing and paying bills, as well as calling payees to resolve any billing issues
- Reconciling bank accounts
- Collecting and organizing tax documents
- Ensuring medical bills are being processed appropriately by health insurance companies and sending in claims, when necessary
- Organizing and filing financial documents
- Making referrals to and sometimes collaborating with other professionals, like investment, tax and legal advisors, as needed
Other, less common ways that daily money managers can help are:
- Acting as a power of attorney for finances and/or healthcare
- Serving as a trustee or executor
- Offering financial counseling
- Creating a budget
- Helping create a debt reduction plan
How Can You Find a Daily Money Manager?
Of course, one of the best ways to find any professional, including a daily money manager, is through word of mouth. Ask your friends or neighbors if they know of anyone who has used a daily money manager.
Additionally, local senior villages can also be a good resource for referrals for daily money managers and other professionals. Senior villages often maintain directories of professionals that they can refer members to.
Another way you can find a daily money manager in your area is by going to the website for the American Association of Daily Money Managers. You can search for daily money managers who belong to the AADM.
Finally, you may be able to locate daily money managers who will provide pro bono or reduced rate services for older adults and/or low-income clients. You can search for agencies by state who offer this service.
Questions You Should Ask a Potential a Daily Money Manager
If you are considering using a daily money manager, you will want to ask a lot of questions before you decide on one.
Since daily money managers handle confidential and very personal information, it is a good idea to thoroughly vet any potential daily money manager. Some key questions to ask potential candidates are:
- What types of financial assistance can you provide?
- How long have you been working in the field?
- Do you have a particular area of interest or specialty?
- Have you worked with older adults before? What services do you typically provide this group?
- Do you belong to any professional organizations? What is your level of education and do you have any certifications related to finances and/or daily money management?
- Do you carry any professional insurance to cover your work as a DMM? For example, errors & omissions insurance? Also (if the DMM will be acting as the executor to your will or as a power of attorney), do you have errors & omissions insurance with added fiduciary coverage.
- What is your experience collaborating with attorneys, financial advisors and family members?
- How do you charge for your services (i.e. by the project? Hourly? Monthly?). Are there other charges like travel time? Any other costs to be aware of?
- Do you have references you can provide?
[Note: When speaking with a reference, be sure you ask how long they worked with the daily money manager and what the overall experience working with the DMM was like. Also, did the client ever feel uncomfortable? How was the DMM about explaining anything the client didn’t understand?] - Do you offer a free initial consultation? [Note: Some DMMs do offer this and some don’t. It’s good to know what to expect ahead of time.]
- Do you have an engagement letter? Does it offer a confidentiality clause?
- Do you provide regular reports or updates?
With some of these topics, there’s not necessarily a right or wrong answer. It’s just a good idea to know what to expect ahead of time.
Even if you are not ready to hire a daily money manager at this time, it is a good idea to think about it ahead of time. Like many aspects of planning for your later years, the more forethought you put into what you want and who you want to help you, the more control you retain over your life, if you become unable to manage on your own.
