The growing need for resources to help older adults manage their financial and healthcare choices

Abstract

BackgroundBoth financial literacy (managing personal finances) and health literacy (managing personal health) become increasingly important for older adults, potentially impacting their quality of life. Resources in these constructs of literacy tend to be distinct, although the skills and decision-making involved overlap as financial issues impact healthcare choices. Thus the primary purpose of this commentary is to propose a new area of research focus that defines the intersection of financial and health literacy (i.e., financial health literacy).MethodsWe conducted a limited literature review related to financial, health, and health insurance literacy to demonstrate gaps in the literature and support our position. Online search engines were utilized to identify research in our primary areas of interest.ResultsWe define the intersection of financial and health literacy as an area of need labeled financial health literacy, with a focus on four domains. These include: 1) the ability to manage healthcare expenses; 2) pay medical bills; 3) determine health needs and understand treatment options; and 4) make sound healthcare decisions with financial resources available. Despite some overlap with health insurance literacy, financial health literacy would define an area of need encompassing health management choices and health plan selections integrated with other financial management issues including living arrangements, financial planning, and retirement planning.ConclusionsPotential initiatives should be considered to help at-risk older adults find resources to improve their financial health literacy, which in turn will enhance their abilities to manage medical choices in the environment of an increasingly complex healthcare system.

Financial Management Activity Process: Qualitative inquiry of adults with acquired brain injury

“…Managing finances is difficult, and it becomes more challenging when also managing a chronic health condition, especially a condition, such as ABI, that is associated with acquired cognitive impairments (MacLeod et al, 2017). Therefore, to optimize real-world FM actions and behaviours, rehabilitation practice must be better informed to assess and intervene in cases of FM limitations.…”

“…Managing one’s finances is a central principle to North American adult life and shapes one’s autonomy and independence in other chosen life activities and roles (Edersheim, Murray, Padmanabhan, & Price, 2017; Koller et al, 2016). However, FM errors can have calamitous consequences on the economic prosperity of adults and their dependents (Edersheim et al, 2017; MacLeod, Musich, Hawkins, & Armstrong, 2017). Despite the importance of FM to everyday life, there is a paucity of evidence guiding rehabilitation practice in the area of FM, especially for adults with acquired brain injury (ABI; MacLeod et al, 2017; Marson, 2016).…”

“…However, FM errors can have calamitous consequences on the economic prosperity of adults and their dependents (Edersheim et al, 2017; MacLeod, Musich, Hawkins, & Armstrong, 2017). Despite the importance of FM to everyday life, there is a paucity of evidence guiding rehabilitation practice in the area of FM, especially for adults with acquired brain injury (ABI; MacLeod et al, 2017; Marson, 2016). Surprisingly, the everyday FM experiences and the activity processes used to accomplish FM activities by adults with ABI have not been examined.…”

The silver tsunami: an enquiry into the financial needs, preferences and behaviours of retirees

“…Some also felt they would be able to rely on the state if necessary, as in the case of a terminal illness: ‘I wouldn’t be uncomfortable falling back on the state’. Participants’ narratives highlight the need for improved financial health literacy (MacLeod et al , 2017). Financial, health and health insurance literacy interconnect and are essential for decision‐making later in life.…”

Spiritual well-being promotion for older adults: Implication for healthcare policy makers' decision making on cost savings

“…Today, many older adults are more likely to suffer from economic privation-driven low quality of life and limited financial health literacy,[3] caused by worsening social/health inequity and cognitive decline in old age,[4] which is an additional threat factor to their holistic well-being. Global demographic change such as the low birthrate in combination with a rapidly aging population is triggering this social affliction.…”