Financial Caregiving | 10 Ways To Go About It

Every day, millions of people devote time, energy, and often their own money to caring for someone else. This group isn’t governed by agencies, nonprofits, or corporations, it’s made up of ordinary people from every background and income level who step up when loved ones need help.

Family caregivers spend, on average, about 26 percent of their income on caregiving expenses, according to AARP research. This can include paying medical bills, covering copays, buying groceries, providing transportation, or simply dedicating unpaid time and attention to someone else’s care. If you’re new to financial caregiving, or already in the thick of it, there are ways to make it more manageable and protect your own financial well-being in the process.

1. Think Ahead About Who Might Need You

Take a little time to consider who in your life you might one day care for. Many people automatically think of their spouse, parents, or children, but close friends or extended family may also rely on you. Identifying these possibilities early can help shape your financial planning.

2. Make Insurance Decisions Early

Long-term care insurance fills a gap that regular health insurance doesn’t cover: ongoing daily care after hospitalization or medical treatment. Considering a policy early can help you pay lower premiums now and avoid heavier financial strain later if extended care becomes necessary.

3. Learn About Financial Caregiving

Dedicate a few minutes each day to building your financial knowledge. Read credible articles, listen to podcasts, or check out audiobooks from your library about caregiving and personal finance. Small, consistent steps can make a big difference in how confident you feel managing money.

4. Take Care of Yourself, Too

Caregiving is a deeply meaningful act, but it’s also demanding. Protect your own physical and mental health—get enough sleep, eat well, and don’t neglect regular medical checkups. You’re a better caregiver when you’re also taking care of yourself.

5. Keep Working If You Can

It may seem logical to leave your job to devote yourself fully to caregiving, especially if your household has another income. But staying employed, even part-time, helps you maintain Social Security benefits, retirement contributions, and financial independence. That stability matters, especially as your own care needs arise in the future.

6. Manage and Protect Finances Carefully

If you’re handling someone else’s money, treat it with the same care you would your own business. Track every transaction and keep organized records. Work with another family member or trusted person for transparency and accountability. This protects both you and the care recipient from misunderstandings or disputes later on.

7. Get Professional Advice

Caregiving often brings complicated financial and legal decisions. Seek advice from professionals—a financial planner, attorney, or tax specialist—who can help you make informed choices and protect your interests while doing what’s best for your loved one.

8. Explore Tax Benefits

You may be able to claim the person you’re caring for as a dependent if they meet certain criteria, which could unlock meaningful tax savings. Before taking this step, talk with a tax professional to make sure you qualify and to maximize any available deductions for caregiving-related expenses.

9. Know Your Limits

You can’t do everything, and that’s okay. Set boundaries early to avoid burnout. When you know your limits, it becomes easier to make decisions about what you can realistically provide without sacrificing your own health or stability.

10. Share the Workload

In many families, one person quietly takes on most of the caregiving duties while others do little. Be clear and assertive about sharing responsibilities. Whether it’s managing finances, scheduling appointments, or covering shifts, caregiving works best as a team effort.

Family caregiving is a meaningful act of love but also a complex financial responsibility. By planning ahead, staying informed, and getting the right support, you can care for others without losing control of your own financial future.

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Sources: AARP Family Caregiving Cost Survey (2024)
Internal Revenue Service Caregiver FAQs (2025)