Ask Liz Weston

Get smart with your money

Coronavirus

When parents are the emergency fund

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Financial fallout from the pandemic is hitting millennials hard — and many will soon turn to their parents for help, if they haven’t already.

Before parents ride to the rescue, financial planners urge them to map out a strategy that doesn’t just plug a short-term need but also makes sense in the long run.

“Often the heartstrings will get pulled — ‘I really have to help them!’— but it can be detrimental to the parent,” says certified financial planner Jeffrey L. Corliss of Westport, Connecticut.

In my latest for the Associated Press, why parents must be cautious when rescuing their children financially.

Find free, solid money advice in uncertain times

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If you have money questions — and who among us doesn’t right now? — there are plenty of people willing to offer advice: friends, relatives and random strangers on the internet.

Finding someone who knows what they’re talking about, and who isn’t trying to take advantage of you, can be tougher. Fortunately, several groups of credentialed, trustworthy financial advisers are stepping up to offer free help.

In my latest for the Associated Press, how to find the solid advice you need.

Q&A: Stimulus money for Social Security recipients is finally on the way

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Dear Liz: My mother filed a paper return for 2019 in early March but hasn’t received her refund yet. Also, she hasn’t received the stimulus check to which she is entitled. She receives Supplemental Security Income via direct deposit and she included her banking info on her tax return for direct deposit. Given the IRS’ limited staffing, when might she receive her money? Will she still receive her stimulus check if many more months pass before the IRS processes her tax return?

Answer: Your mom may have already received her stimulus paymentby the time you read this. The Social Security Administration said Tuesday that it had started sending payments to SSI recipients.

The best way to check her refund status is via the IRS site. People who filed electronically can check their refund status 24 hours after filing. When a paper return is filed, people should wait four weeks before checking. She’ll need to enter her Social Security number, filing status and exact amount of her expected refund.

Friday’s need-to-know money news

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Today’s top story: Credit score drop? How to diagnose why and what to do next. Also in the news: Put off debt payments to start saving now, going contactless as a way to pay safer, and many unemployed people aren’t aware of all the relief they may qualify for during the pandemic.

Credit Score Drop? How to Diagnose Why, and What to Do Next
If you got a payment modification and saw a score drop, it’s tempting to think they’re related. They may not be.

Put Off Debt Payments to Start Saving Now
In uncertain times, it makes sense to prioritize building a cash reserve over paying down debt balances.

Looking for Safer Ways to Pay? Go Contactless
Contactless payments like mobile wallets, P2P apps and tap-to-pay cards are easy to use and help lessen risk of contagion.

Many unemployed people aren’t aware of all the relief they may qualify for during the pandemic
Take a look at what’s available.

Monday’s need-to-know money news

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Today’s top story: 6 tips for handling credit card bills if you’ve lost income. Also in the news: How to slash your cell phone bill, how to work around delays in major IRS functions, and how credit card rewards will change after the pandemic.

6 tips for handling credit card bills if you’ve lost income
Protecting yourself from penalties.

How to slash your cell phone bill
Ways to reduce your monthly costs.

How to Work Around Delays in Major IRS Functions
Exploring your options.

How Credit Card Rewards Will Change After the Pandemic
The new normal for rewards.

Q&A: Stimulus funds don’t count as income

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Dear Liz: I hold power of attorney for my aunt, who is in a local nursing home. Medicaid pays the bulk of her cost to stay there. Her $1,200 stimulus check was just deposited into her bank account at the end of last month. The state Medicaid rules require that she not have more than $2,000 in assets. I try to keep her bank balance below that each month, which can be a challenge. Do you have any idea how the state Medicaid will handle this additional income to her bank account? Will I have to pay the nursing home additional money from it or reimburse Medicaid? Or will she be allowed to keep the whole amount? I want to be judicious with her finances and not screw up her eligibility for Medicaid (her greatest fear is being thrown out on the streets).

Answer: Your aunt is lucky to have you, and fortunately there’s no need to worry. The payments are not considered income for recipients of Supplemental Security Income (SSI), according to a blog post by Social Security commissioner Andrew Saul. State Medicaid programs are not allowed to impose eligibility requirements that are stricter than SSI standards, according to ElderLawAnswers, a referral site for attorneys who specialize in issues relating to seniors.