A penny saved is a penny earned. Don't spend what you don't have. Idle hands are the devil's workshop.

Those simple life lessons learned early by most senior citizens stand them in good stead in the current economic recession.

However, seniors are among the hardest hit by tough times. While living on "fixed" incomes, many are facing the loss of planned retirement funds, as simultaneously, they see food and living costs rise, as well as medications. 

"People are having to choose between food and medicines, and it is a tragic decision to have to make," said Paula Roach, Good Samaritan Center executive director. "So, they are cutting back on their medicines - cutting pills in half - and looking for help with their vital needs like food and utilities. Or, in some cases, they are using credit cards to pay for prescriptions. It's the American way."

A retired Lenoir City woman who asked to remain anonymous said medications and surgeries for rheumatoid arthritis have landed her and her husband in debt. "We are in the doughut hole; we hit the Medicare gap in February. There's only so much expenses Medicare will cover, then you fall into the gap. I make too much for Medicaid, and Medicare and insurance don't cover it. We've charged our credit cards to the max. We can't afford a truck or a house, our debt limit is too high. We depleted our retirement account."

With indebtedness making it more difficult for more seniors to keep afloat financially, many are frantic to find solutions. This perfect storm financial event makes senior citizens an ideal target for scams or unscrupulous legal businesses.

Sheila Borders, University of Tennessee Extension agent, said scams are an ever-present element of a poor economy, and scams targeting the elderly are seen far too frequently.

"Anybody in a financial bind who needs money can be targeted by scams, but ... unfortunately, people without scruples will take advantage of the elderly," Borders said.

Loudon County Sheriff Tim Guider underscored Borders' comment. Guider said he encourages senior citizens to be wary of sweepstakes or offers they receive in the mail, by phone or by e-mail.

"It seems that senior citizens are so susceptible to scams," Guider said. "I have often told seniors, don't do business over the phone unless you know the person. Don't give out information like social security and account numbers, no matter how real it might seem. Just yesterday, my mother in law showed me a letter she had gotten that seemed very real to her. This scam said she was eligible for $1,250,000 if she would fill out a form and send in $19.99. The rule of thumb is if it sounds too good to be true, it more than likely is."

Guider said scam operators are difficult to catch. "They are here one minute and gone the next. They set up shop at an address and by the time we try to track them they are gone. We try to get the FBI to help us, but we're at a loss. These are people out to make a quick buck."

Budgeting

The first step toward facing financial crisis, for seniors or anyone, is to establish a budget, or update an existing budget.

It is important for people to determine where they stand financially, Borders said.

"With everything in black and white, you can see areas where there are gaps - too many trips to the store, eating out too much ... it is amazing how little things you cut back on can have a huge difference on your budget. Maybe it's cable t.v. or the car. What can we cut?"

Borders will provide budgeting classes for groups, or individuals may contact the UT Extension Office to set up a counseling session, one on one. 

Borders can be reached at 423-458-5612. Extension provides educational programs on demand, designed to provide needed skills, such as cooking for one. 

Borders said some seniors are returning to work, getting a part-time job.  "I am seeing this more and more throughout the community," she said. "We all want to be able to retire and not work until we die, but if we've got to pay bills, we've got to work. A lot of places use part-time help, but if they work too many hours, they put their social security in jeopardy."

Seniors may be advised to take advantage of available services, such as public housing or transportation, commodities or the Angel Foods ministry network, a low-cost food purchase plan available to anyone.

A retirement supplement of some kind is necessary for most seniors to live, Borders said.

'"It would be a difficult existence to live on Social Security alone," she said. "Most people draw under $1,000 a month. Then, there are house maintenance issues. If they had to buy medications, it would be nearly impossible."

Credit counseling schemes and scams are widespread. And some that are legal and legitimate, such as title cash or check cashing businesses, are able to charge up to 500 percent interest, Borders said.

The Good Samaritan Center will be offering free budgeting classes, taught through Consumer Credit Counseling Services, a 501 (c) (3) not-for profit organization. 

The Lunch 'n' Learn programs take place on the last Thursday of each month. Attendees will be offered free pizza and soda. Call the Good Samaritan Center at 986-1777 to register for the budgeting program.