Is caring for a loved one beginning to feel like a wallop to your wallet? AARP estimates that family caregivers spend an average of $7,242 out-of-pocket each year. Your family member’s needs may also force you to reduce work hours or quit your job, affecting your present income and your savings for retirement.
Here are a few strategies to help manage caregiving costs:
Create a budget and use available benefits. Create a budget for caregiving expenses and track them separately. (This makes tax filing easier!) See if your employer offers flexible hours or paid family leave so you can keep working. Check with your relative’s Area Agency on Aging (AAA) for support in learning about local caregiver aid programs.
Leverage tax benefits. Review your caregiving expenses to see if you can claim your relative as a “dependent.” If so, you can deduct many expenses. Also consider creating a flexible spending account to cover their healthcare costs.
Seek government support. Review your loved one’s assets to see if they qualify for programs through Medicaid or Veterans Affairs. Medicaid services vary from state to state. Contact the office nearest your relative to learn about state programs, which can include payment for home care.
Ask for help and use community resources. Ask family members for help with either hands-on caregiving or paying for outside help. Instead of everyone buying Mom another scarf for her birthday, put that money into a fund for her care. Search for programs offered by local agencies and nonprofits. Many offer free or low-cost services such as respite care or transportation. Some service and/or fellowship organizations (e.g., Rotary, Lions) also have programs for eldercare.
Plan ahead. Keep an eye on your financial future and care needs. Look into long-term care insurance or an employer eldercare savings account. Consider professional guidance.
Providing loving care doesn’t have to mean financial hardship for you. Taking these steps may help ease the strain.
Is caregiving affecting your finances?
Caring for a loved one often comes with financial challenges—higher daily expenses, reduced income, and less opportunity to save for your retirement. At Delaware Palliative, we provide resources to help you navigate the financial impact of caregiving. Our team is dedicated to supporting caregivers like you through these difficult choices. Reach out today at 302-478-5707 to learn how we can help you manage caregiving without sacrificing your financial stability.
