How to Avoid Going Broke When Caring For Your Aging Parents

The average caregiver earns less than $40,000 annually yet the cost of caring for an elderly parent exceeds five thousand dollars per year and increases regularly. With increases in health care costs and decreased job security, families are really feeling the pinch. Here are some tips on how to avoid going broke when caring for your aging parents.

Difficulty: Moderately Easy

Instructions

1. Know their business. Many seniors are private about their personal and financial status. If you are the primary caregiver for your aging parents you need to know the details of their situation. If you have an open relationship, you can inquire directly about their goals for retirement and how they plan to achieve those goals. If the relationship is tense, you have to determine if being direct is worth the risk. If inquiring directly is not an acceptable risk, look for clues into their financial status including the ability to pay for basic living expenses and amenities.

2. Don’t rob Peter to pay Paul. While caring for your parent is important, caring for yourself is even more important. Recall the airline stewardess’ instructions when prioritizing your needs and your parents’ needs. When deciding if you should wipe out your bank account or borrow from your 401K to help a parent financially remember – caregivers should ensure their own viability first. If you are taken out, who will fend for your family?

3. Set boundaries. Evaluate your financial, time, and support availability. The biggest mistake caregivers make is giving without self assessment. Seek first to understand what is needed, evaluate the resources you have available to offer and then find creative solutions to make up the difference. Make clear what you are able to do and stick with it.

4. Know your limitations. Try as you might you cannot be all things to all people. If you have siblings or other family members, seek support and assistance from them for your aging parents including transportation, home maintenance, and sharing the financial workload. When appropriate, collaborate and delegate.

5. Consider moving in. If frequent contact with your parents is necessary, consider having them move in with you or vice versa. With fuel, food, and care costs rising significantly, having multiple generations in a home has significant benefits. These benefits include financial, child care, and peace of mind. It’s a practical solution and frankly, that’s the way things used to be back when.

Tips & Warnings

• Realize there are strategies and options you haven’t considered.
• Before taking a life changing step that may cause more damage in the long-term, know that there are often many solutions to help a family manage financial, support, and health related challenges with elder care.
• Seek professional support from an elder care strategist or geriatric care manager if appropriate.
• Don't let short term gain prevent your long-term comfort.