Terri Ramsey Beavers At least 17.7 million individuals in the United States are family caregivers for someone age 65 and older with physical or cognitive disabilities- And, this is a role that comes with its challenges, especially in the way it affects your finances.
Caring for an older person often means shouldering not just emotional, but also financial burdens, leaving your job behind, having to reduce your schedule to a part-time role, and spending more on prescriptions and treatments.
However, finding a balance is key to keep these situations manageable and sustainable over time. The five important strategies below can help you take care of your aging parents without compromising your financial stability. Let’s get started.
Embrace Remote Work Or Consulting Opportunities
According to a Pew Research Center survey, about a third (35%) of workers with jobs that can be done remotely are embracing the home office full time. And, the potential of this economic shift to offer a unique solution for those caring for aging parents cannot be overstated.
In other words, if you are able to work from home or remotely, you can tailor your schedule around your caregiving responsibilities. Alternatively, if remote work isn’t an option with your current job, freelancing or consulting provides a flexible alternative to supplement your income – especially if you had to switch to a part-time role to balance your caregiving duties.
Navigate Tax Benefits And Compensation Options
There are smart financial solutions that can help you take advantage of tax benefits and governmental help when looking after children or aging parents. These benefits include specific tax deductions and the possibility to get paid to care for a family member through various programs.
For instance, the Child and Dependent Care Credit can offer financial relief, while the Medical Expenses Deduction can help you cover some healthcare costs that are not covered by insurance. Navigating these options not only reduces your tax burden but also potentially brings in additional income. Nonetheless, often, these options remain unknown to most people needing help – that’s where working with a finance or tax specialist can help.
Share Care Duties With Family Members
Sharing the load of caregiving among family members is a great way to ease the burden on one person – and it can even help maintain a healthy balance in personal finances.
By distributing responsibilities, each family member can continue to focus on their career or income-generating activities. Nonetheless, to be sure that you are sharing your responsibilities fairly, you’ll need to all come together and discuss what’s best for each of you – remember: communication is key!
Reduce Rent and Mortgage Costs
Having personal space and privacy in a home is vital to healthy family dynamics. Nonetheless, sometimes, to reduce costs, you may need to downsize your living arrangements. This can help you lower costs such as mortgage repayments or rental expenses.
Some options include:
- Downsizing
- Negotiating better terms
- Moving to a more affordable location
- Moving your aging parents into your home, if there’s space
- Using a property to generate income
Set Up a Dedicated Savings Fund
Last but not least, don’t forget that preparedness is key. Life expectancy is increasing, and so is the number of adults over 65 worldwide. If you are not yet in the position of having to care for your parents, you may consider starting planning for this event early, by starting a dedicated savings fund. This can help you provide the best care to your loved ones without sacrificing your finances.