DEFINITION of 'Daily Money Manager - DMM'

A daily money manager is a person who takes over someone’s day-to-day financial tasks. A variety of people employ daily money managers, ranging from elderly clients to those simply too busy to maintain total control and accuracy of their financial needs. Daily money managers offer services to ensure nothing falls through the cracks, including necessities like paying monthly bills, assisting with tax records, balancing checkbooks, decoding medical bills and negotiating with creditors. Other services may include notary services, payroll management, health care advocacy or acting in another fiduciary capacity.

BREAKING DOWN 'Daily Money Manager - DMM'

Daily money managers deliver essential financial services to seniors and older adults, people with disabilities, busy professionals, high net worth individuals, small businesses and others. The demand for daily money managers has grown steadily in recent years, largely due to a growing elderly population. Children often take over their parents’ financial tasks when their parents grow old, but many find themselves unable to do so because of their work and family commitments. The growth of the industry can also be attributed to the increase in dual income families - with both parents working, there is often not enough time to run around ensuring documents are properly signed or bill payments are processed on time. Wealthy people may hire daily money managers to avoid taking care of menial money tasks, or because they feel their time is better spent doing other things that could earn them more money.

How Daily Money Managers Work

Let’s assume a person is elderly and lives alone. His wife, who used to handle the bills, insurance, shopping, budgeting, recordkeeping and investing, died a year ago. His children feel he is too overwhelmed and distracted to care for these things effectively. They both work, as do their spouses, and they have children of their own to take care of. The person, or his children, hire a daily money manager to help out.

The daily money manager pays all of the person’s bills, handles things if he is billed incorrectly, balances his checkbook, prepares and makes bank deposits for him, gets his tax information ready and ensures that his medical bills are processed and paid correctly. The daily money manager visits John at home twice a month to discuss recent activity and future plans.

American Association of Daily Money Managers

The American Association of Daily Money Managers is s trade organization representing daily money managers. Its mission is to support daily money management services in an ethical manner, to provide information and education to members and the public, and to develop a network of dedicated professionals.

RELATED TERMS
  1. Money Management

    Money management is the process of budgeting, saving, investing, ...
  2. Average Daily Balance Method

    A credit card accounting method where interest charges are based ...
  3. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  4. Money Flow

    Money flow is calculated by averaging the high, low and closing ...
  5. Money Market

    The money market is a segment of the financial market in which ...
  6. Group-Home Care

    Care given to a group of people with similar disabilities within ...
Related Articles
  1. Retirement

    How Children Can Help Parents With Retirement

    Sometimes the elderly lose their cognitive skills, that's when it may be time for their children to step in and assist with retirement planning.
  2. Investing

    The Evolution Of Money Management

    We look at the development of the money management profession and how it impacts professional money managers today.
  3. Managing Wealth

    How To Parent Your Aging Parents

    For sandwich generation, planning ahead is key to good elder care.
  4. Financial Advisor

    Top Tips for Family Wealth Transfers

    Essential tips for tackling family wealth transfers.
  5. Financial Advisor

    Tips for Retiring Without Long Term Care Insurance

    Long term care insurance is as pricey as it is important. Here are tips for how to manage retirement and meet healthcare costs without a policy.
  6. Investing

    Signs You Need a Money Manager Now

    Do you know if you will have enough money in retirement? And is your current portfolio performing up to expectations?
  7. Insights

    What is Money?

    Money: It's a part of everyone's life, and we all want it, but what is it, how does it gain value, and how it was created?
  8. Investing

    The Pros and Cons of Money Market Funds

    Find out whether socking your money away in these accounts will stand up to the test of time.
  9. Retirement

    Caring for Aging Parents? Consider These 5 Things

    The following are five important considerations that will help you care for your aging loved ones.
RELATED FAQS
  1. Why would you want a monthly benefit versus a daily benefit?

    An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance ... Read Answer >>
  2. Are there leveraged ETFs that track the banking sector?

    Learn about some of the leveraged exchange-traded funds (ETFs) that investors can use to track the banking industry within ... Read Answer >>
Hot Definitions
  1. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
  2. Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better.
  3. Current Ratio

    The current ratio is a liquidity ratio that measures a company's ability to pay short-term and long-term obligations.
  4. Return on Investment (ROI)

    Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or compare the efficiency ...
  5. Interest Coverage Ratio

    The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company can pay interest ...
  6. Cash Conversion Cycle - CCC

    Cash conversion cycle (CCC) is a metric that expresses the length of time, in days, that it takes for a company to convert ...
Trading Center