Show Notes
Caregiving in any form, while rewarding, can be physically, mentally and financially taxing.
In this short Finance Moment podcast episode, Associate Financial Planner Damian Beard, CFP® shares 4 tips to manage the financial side of caregiving.
According to the AARP:
- In 2020, over 53 million Americans provided unpaid care to family members.
- More than 60% of these caregivers also worked full-time or part-time jobs.
- The value of unpaid caregiving in the U.S. was estimated at $600 billion in 2021.
Caregiving can lead to financial strain, including reduced work hours, out-of-pocket expenses, and missed career opportunities. It also impacts personal health, leading to stress, anxiety, and depression.
Caregiving is demanding and can lead to burnout, chronic health conditions, and significant medical costs. Self-care is essential—regular check-ups, exercise, and mental health support are vital. Don't hesitate to ask for help.
Here are 4 tips in managing the Financial Side of Caregiving:
- Explore Caregiver Benefits: Check with your employer for paid leave or flexible hours. Look into government assistance programs- such as Medicaid, Social Security, and others- that can help offset costs.
- Create a Caregiving Budget: Track spending and prioritize urgent expenses to avoid financial surprises.
- Save for the Future: Set up a savings account for caregiving expenses and continue contributing to your retirement savings, even if it’s in small amounts.
- Legal and Estate Planning: Ensure you have essential legal documents, like power of attorney, guardianship, and advance directives in place, especially if you’re handling someone else’s finances or healthcare decisions.