Daily Money Management

What is Daily Money Management?

Daily Money Management is a new and rapidly evolving field, which has grown from both the financial and social roots. Daily money managers (DMMs) provide personal business and social support assistance to clients who have difficulty in managing their personal monetary affairs.

The services meet a continuum of needs, from organizing and keeping track of financial and medical insurance papers, to assisting with cheque writing and maintaining bank accounts. Social support services include a variety of related assistance areas, such as arranging for in home care and medical appointments, and providing information regarding community resources available to meet other needs.

Who needs the help of a DMM? Lady

There are many factors, which contribute to the need for a DMM. Most DMMs work mainly with senior citizens, although some work with middle-aged adults whose careers make it difficult for them to find time for their own paperwork. Within the senior client base, most have a need for DMM services due to a physical change precipitated Man by the aging process, such as limited vision, arthritis or other conditions which limit the ability to write, dementia, or a simple loss of ability to follow through on tasks. Some others are so active in their retirement that travel and social activities make it difficult to keep up with paperwork, and they prefer to simply let someone else handle things for them. It is not uncommon for the adult child of an older person to seek the assistance of a DMM if the child does not feel they have the time or ability to maintain their parents’ affairs.

If I hire a DMM, why do I need an accountant, lawyer, or social worker?

A DMM does not take the place of a professional in the accounting, investment, or social fields; rather their work complements the work of other professionals by facilitating the completion of the day-to-day task rather than determining long-term plans. For example, a DMM, by organizing and maintaining financial records for a client, can easily compile the necessary documents for tax preparation by an accountant. When the accountant has prepared the required tax returns, the DMM makes sure they are correctly signed, that the appropriate cheques are attached, and that returns are mailed on time. Unless your DMM happens to have separate professional credentials in other fields he or she should not be offering you legal, investment, or tax advice. However, a good DMM should be able to recognize pertinent issues and refer you to professionals and organizations qualified to provide the other services you may need.

What types of tasks a DMM will handle?

The expertise of DMMs covers a broad range of tasks, and the actual work they do depends on client need. However, the scope of a DMMs’ work generally includes the following:

bill-paying, including calls to payees regarding incorrect bills and preparation of cheques for clients to sign.
Balancing chequebooks and maintaining organization of bank records.
Preparing and delivering bank deposits.
Organizing tax documents.
Negotiating with creditors.
Deciphering medical insurance papers and verifying proper processing of claims.
General organization assistance.
Providing referrals to legal, tax, and investment professionals.
Providing referrals to home healthcare providers.

Some, but not all, DMMs will also provide additional services, such as:

Notary services or Commissioner For Oaths.
Maintaining home payroll records for use in preparation of payroll tax reports.
Transportation to and from appointments.
Assistance with arrangements for moving from one’s home to a retirement or nursing facility.
Acting as power-of-attorney or representative payee where needed.
Preparation of payroll cheques for home employees including calculation of Federal and provincial taxes.

What questions should I ask before hiring a DMM?

The type of work DMMs handle for their clients is highly personal and confidential, whereas your personal judgment and instincts are important in determing the honesty of any professional with whom you may do business, you can take additional steps to safeguard yourself against becoming involved with a dishonest person. First, ask for a Meet referral from someone you know and trust, such as a friend, relative, lawyer, accountant, or doctor. If none of these people can put you in touch with a DMM and you must hire a basically "unknown" person, be ready to address the following issues before hiring a DMM:

Is the DMM either bonded or insured?
Is the DMM, willing to involve another person in their work, such as a lawyer, accountant, or family member?
Review the scope of the work before you agree to having the DMM start working for you. Many times this is accomplished at the initial meeting. Some DMMs offer a free initial consultation (Hartzler Enterprises does) ask in advance their policy on first meeting charges.
With which local organizations is the DMM affiliated? If your DMM is active in community organizations such as the chamber of commerce, a church or religious organization, community actions groups, or a local provider’s council, connections in these groups will help your DMM better serve you since they will be able to refer you to other professionals and resources in the community.
Can the DMM provide a reference list? A reference list should include two or more clients or their family members and at least one professional; it may include a personal reference.
Take the time to call the references on the list, asking them whether the DMM is: respectful, dependable, efficient, empathetic, and professional in manner. How were any conflicts resolved? Have you ever felt uneasy about the work done by the DMM and do you feel comfortable asking for explanations of thins you don’t understand?
Your access to your own records, especially financial records, should not be restricted by the status of your own affairs, take this as a sign of trouble.
How does the DMM bill for their work? Be sure that you understand the billing arrangements before the work begins.

What will the services of a DMM cost and what are the common billing methods.

Most DMMs charge for their services on an hourly basis, with rates varying with geographic areas. You should expect to pay between $30 and $60 per hour. In addition to the hourly rates, most DMMs charge for their travel time and for out-of-pocket expenses such as postage stamps provided to their client and long distance charges for calls made on a client’s behalf. Some DMMs request payment at the time of service and others bill on monthly basis. Some local governments have reduced fee or free services available for low-income clients.

Will I be giving up my independence if I hire a DMM?

On the contrary, the assistance of a DMM is often the piece of life’s puzzle, which allows many seniors to avoid guardianship of complete loss of independence. If you find that you are late in paying bills or do not understand certain financial forms that come in the mail, your family might pressure you to move out of your home, or turn over you affairs to a legal representative. Often times, a twice-monthly visit from a DMM will allow you to keep your finances under your own control, with the DMM helping you to keep on track and to avoid errors which may have raised the concern of loved ones.