Financial Concerns and Caregiving

Family caregivers take on many responsibilities and often struggle trying figure out what is best for the person in need and how it affects the rest of the family. Few of us are prepared for the financial responsibility of caring for someone else. The costs of medical care, personal assistance services, and other needs associated with caregiving can be challenging for some families to absorb.

One of the financial decisions involved with becoming a caregiver is whether you can afford this new arrangement. Often you have no choice in the matter, but the type of care the person requires can give you some flexibility. The decision about the type of care has three parts:

• What types of care are available in your area and what are the costs?
• How will you pay for the care?
• If you decide to provide care at home, will you stop working or reduce the hours you work?

Make Plans in Advance

As a caregiver, it is important for you to make plans in advance. Although the hope is that an emergency or crisis will not occur, it is best to think ahead. Know what your options are so that you can make the best use of your resources and available programs.

If the person you are caring for has a limited income, you will need to talk with him or her and other family members to determine how to manage expenses. You should think about exploring benefit programs such as Supplemental Security Income(SSI), Medicare, and Medicaid. Local communities may have programs or services for caregivers that may help to supplement income or provide services at little or no cost.

Address Financial Concerns

Financial and caregiving issues are difficult to discuss because they deal with control and mortality. In a recent article, Celia Hayhoe, family resource management specialist at Virginia Tech, reported that 19 percent to 40 percent of the older adults surveyed would not discuss their financial information with their adult children.

To become familiar with terms that you may want to know regarding financial issues, visit the glossary.

The first step that you can take as a caregiver is to talk with your aging parents about your concerns for the future.

You should also consider planning for your retirement if you are reducing your hours or retiring to care for a family member.

Another task may be to consider estate planning with the individual for whom you are providing care.

For more information, you may want to watch this video: www.ces.purdue.edu/farmtransfer/videos/intro.asx
or click here for the video with subtitles

The publication Planning for Financial Costs of Caregiving may also be helpful.