Caregivers Advice

The Financial Impact of Being a Caregiver
By Maria Sandella

Being a caregiver is more than just cooking a meal or two. You are essentially taking over
not only their personal care, but often times their financial care as well. So it is important
before you make such a big decision that you are ready for the financial impact it may have
on your family.

In the United States there are over 22 million households that are providing care to a friend
or relative over the age of 50. Forty percent of those caregivers are still raising their own
children while sixty-four percent also work out of the home, either full or part time.

The costs of caregiving have a financial impact on the family. If the person you are caring for
requires a high level of care, you may find yourself in the position of having to change your
work status from full-time to part-time. The same for promotions, now that you are a
caregiver, that promotion you had been waiting for requiring you to work longer hours is no
longer an option; and any type of business where you would have to travel is also out of the
question.

Another financial hardship of becoming a caregiver is the lost opportunities for compound
returns on your 401K. You may find you have to dip into your savings or use your
investments in order to supplement for lost income and with the decrease in your monthly
income there is no money left for any kind of home improvements that could increase its
resale value.

One study showed that an average a caregiver loses over a lifetime due to both reduced
salary and retirement benefits is $659,130.

While being a caregiver to a friend or family member is a rewarding experience it is not for
everyone. The loss of income may have you resenting the person you are caring for which
may have an impact in the quality of care you provide, intentional or not. So before you agree
to take on the role of personal caregiver it is important that you consider all the pros and
cons and determine if it is something you can commit to, both mentally and financially.
There are also government programs available that can help. The person you are caring for
may be eligible to receive Medicare, which would eliminate their healthcare expense and
drug costs which is the biggest expense a caregiver has.

Sit down with your spouse and make a household budget worksheet. Have 2 columns, 1 for
your fixed expenses such as mortgage, food, bills, healthcare, and any other required
monthly payments and the other column for flexible expenses which are items where the
monthly budget can fluctuate, such as clothing, eating out, personal care items and any
other miscellaneous purchases. Once the budget has been worked out you may realize that
becoming a caregiver won't be as much of a financial burden as you originally thought.

Family should take care of family and being a caregiver is worth the few sacrifices you may
have to make in order to do it.

Maria Sandella was the primary caregiver for her grandmother for 2 years until her passing.
She also worked summers in a long-term care facility while attending college. She now
works as an Application Specialist for http://www.IntercomsOnline.com which provides
wireless intercom systems that caregivers use for communications with the elderly and
disabled. For more information about a caregiver wireless intercom go to
http://www.IntercomsOnline.com. Also read their article titled: Wireless Intercom for Elderly
or Disabled

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