Five stress-reducing financial tips for family caregivers
When a loved one is diagnosed with dementia, Alzheimer’s, or another condition that requires long-term care, familial caregivers face several new considerations, including choices that impact finances.
Whether caring for your loved one yourself or considering assistance such as in-home care or assisted living, proper financial planning can reduce stress and help you maintain greater financial security.
While financial circumstances are unique to each family, here are five universal tips to help you reduce financial surprises.
1. Compare provider and pharmacy prices
Comparing prices might seem like a natural step when shopping for a car. Yet, did you know that provider and pharmacy prices can vary for the same services and medications? Comparing prices for these items can help you and your loved one save money.
Consider exploring whether a provider is in-network for your loved one and asking for a good-faith estimate. The surprise billing disclosure is a provision in the No Surprises Act, signed into law in December 2020 in the United States. The provision requires healthcare providers and insurance companies to provide patients with clear and detailed information about potential out-of-pocket costs associated with medical services before receiving them.
Secondarily, utilizing a prescription benefits card as a supplement to what your primary insurance covers can help you save on medications. Platforms like GoodRx enable you to get a prescription discount card at no cost and start saving immediately on your next pharmacy purchase.
2. Utilize a financial organizer
Using a caregiver's financial organizer allows you to stay organized, ensure bills are paid on time, track expenses related to care, and easily access important financial information when needed. This will help you lower stress related to financial management and help ensure your loved one's finances are in order.
If you’re looking for a place to start or want to check to see your bases covered, look at AARP’s easy-to-use system to keep track of essential data and paperwork.
3. Prioritize financial, retirement, and estate planning
Even though the progression of illnesses like dementia can be unpredictable, you can save money and stress by planning ahead and anticipating expenses as much as possible. This can include creating a budget, researching long-term care options, and even setting aside money for unexpected expenses.
If you’re considering budget tracking options, YNAB (You Need a Budget), Mint, EveryDollar, and PocketGuard are excellent options.
Moreover, if your finances are connected to your loved one’s care (whether it be your partner, parent, or other loved one), consider going further and working with a financial planning or retirement advisor. If you already have one, explore how they can incorporate your anticipated responsibilities into your current plan.
If you’re seeking more in-depth planning support like a financial advisor, look at Retirable and Empower or ask around in your community to see if someone you know can refer you to someone they trust. ClearEstate and LegalZoom are excellent options for online estate planning. Creating new planning pathways can feel overwhelming, so remember to take it one step at a time.
4. Discover community and government-sponsored resources
Many resources for caregivers and their loved ones are low-cost or no-cost and may serve your family well. As you begin to learn more about what’s available in your area, here are some places to start:
The Administration on Aging (AoA) is a part of the United States Department of Health and Human Services (HHS) dedicated to promoting older adults' well-being and independence. It oversees various programs and services that assist and support older adults and their caregivers.
Learn more about government benefits options
Benefits.gov and Benefits CheckUp will help you find benefits you may be eligible to receive and direct you to the right agency where you can apply. Chapter can help you with your three critical Medicare decisions and more.
Explore non-profit organizations
Some great non-profits include the Alzheimer's Association, the National Alliance for Caregiving, and the Family Caregiver Alliance.
Seek out local resources
Online resources like Eldercare Locator and Caregiver Action Network help caregivers find local resources and support. You can also look for community centers and senior centers in your area.
5. Discuss expectations upfront
While this may sound more tangential than the first four items, discussing expectations upfront is essential in financial planning. Prioritize meaningful conversations with your loved one and other family members as soon as possible before you are forced to make decisions that have a financial impact. Some questions to consider:
What type of long-term care options does your loved one prefer?
Do your family finances align with those expectations?
What expectations do you and your siblings or other family members hold about time and finances, and can you make the space to voice them?
How will potential time commitments impact your ability to work and the overall financial picture?
Will a change in your time commitments require you to adjust your budget in other areas (i.e., will you need to order more meals in lieu of cooking)?
As you face new considerations and choices that impact finances in your role as a caregiver, use this list as a reference sheet to start a checklist or augment what you’ve already started.
Setting realistic goals is key, especially when you already have so much on your plate. Remember, you can steadily work through your checklist; it doesn’t need to all be done today. With each step you take, you will gain momentum and greater preparedness that can help you decrease your sense of burden and reduce stress.
What tips did you find most helpful in this list? Are there any we missed? Comment below to help others along on their caregiving journey.
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