Caring for a Loved One? Here’s How to Ease the Financial and Emotional Burden of Caregiving
- John J. Diak, CFP®
- 14 minutes ago
- 5 min read
Caring for an aging or ill parent or relative is one of the most personal and meaningful ways families show up for each other. It’s a role that calls for patience, strength, and a great deal of heart. According to the AARP & National Alliance for Caregiving report Caregiving in the U.S. 2025, nearly 63 million American adults are providing ongoing care to a loved one—a number that has surged 45 percent in just the past decade. That means one in four adults is juggling some form of caregiving, often alongside careers, raising children, and managing their own households. [1]
The study found that family caregivers spend an average of 27 hours each week providing support, and often take on complex medical and financial responsibilities they never expected and may not feel fully prepared for. Unsurprisingly, this level of commitment can lead to both financial strain and emotional stress. Yet more than half of caregivers also report finding a deep sense of purpose in the role. [1]
When you have the means to step in, it can feel like both a privilege and a weight. The key is approaching caregiving with clarity, balance, and foresight. Here are practical strategies to ease the load, protect your finances, and care for yourself while caring for someone you love.
Understanding the True Financial Cost of Caregiving
Even with the right resources in place, caregiving often costs more than expected. According to AARP, family caregivers spend an average of $7,200 out of pocket each year on expenses like medications, transportation, home modifications, and other essential needs. That number can rise significantly, especially when supporting a loved one with limited financial means. Layered on top of your own household responsibilities, the financial impact can escalate quickly. [2]
Beyond direct costs, the hidden financial effects can be just as significant. Nearly half of caregivers report at least one negative financial consequence: 20% dip into personal savings, 12% withdraw from retirement accounts, 23% take on debt, and almost 30% stop saving altogether. [3]
Work responsibilities add yet another layer. Caregivers spend an average of 24 hours per week on caregiving—essentially a part-time job that lasts, on average, 5.5 years. It’s no surprise that many working caregivers say they’ve had to arrive late, leave early, or take time off. Our clients often echo what research shows: caregiving can mean passing up promotions, cutting back hours, or even stepping away from a career entirely. These choices can result in lost income, smaller retirement savings, and reduced Social Security benefits. Over time, these career trade-offs can add up to hundreds of thousands of dollars in lost lifetime earnings. [1]
That’s why, in our work with clients, we look at the full picture. We help them think beyond day-to-day expenses and explore important questions: Are you prepared to absorb these costs? If not, how will you set boundaries? And most importantly, what’s your plan?
Smart Strategies to Ease the Cost of Care
The financial side of caregiving is too important to leave to chance. Waiting until an emergency arises can lead to rushed decisions and added stress. By planning ahead, you give yourself the best chance to manage costs effectively and make informed choices. That means being proactive, exploring your options, and taking full advantage of the tools available to you—from tax benefits and government programs to employer-provided support designed with caregivers in mind. [4]
Caregiver Tax Benefits Worth Considering
The tax code offers several potential advantages for caregivers, but the rules are detailed and change frequently. That’s why we suggest that you review IRS guidelines each year with your accountant and financial advisor.
In some cases, you may be able to claim a parent as a dependent if you cover more than half of their support, opening the door to valuable deductions. You may also qualify to file as head of household, deduct unreimbursed medical expenses you’ve paid for a parent, or take advantage of the child and dependent care credit if you are paying for professional help. Each of these opportunities comes with strict income, support, and residency requirements, so professional guidance is key to making the most of them.
Government Resources Caregivers Should Know
Just because you’ve worked to establish your own financial well-being doesn’t mean you need to shoulder caregiving costs alone if your relative was not able to build wealth or experienced financial loss. Government programs exist for a reason—to help families care for aging loved ones and to ensure seniors receive the support they need. [5]
Medicare and Medicaid provide essential coverage for health care and even long-term care services in some cases. If the person had low taxable earnings and few remaining assets, Supplemental Security Income (SSI) can boost monthly income. Those who served our country and some family members are often eligible for extensive benefits from the Department of Veterans Affairs. Some programs even pay disability caregivers; higher-income families may engage the support of their young adult children or other responsible family members in need of part-time income. [6]
Exploring these options early helps you stay prepared, creative, and resourceful as you navigate caregiving challenges.
Workplace Benefits and Protections for Caregivers
As the number of family caregivers has grown by more than 45% over the past decade, many employers have started to respond with supportive benefits aimed at easing the pressures of caregiving. Paid or unpaid leave, flexible hours, and remote work options can help you care for a loved one without compromising your job. Financial benefits—like flexible spending accounts, subsidized insurance, and dependent care assistance—can also help relieve some of the associated costs. [7]
Some companies go a step further, offering access to caregiver concierge services, legal resources, or employee assistance programs that support emotional well-being. A 2024 Harvard Business School report found that employers providing caregiver concierge services reduced employee absenteeism by up to 50%—a strong signal that supporting caregivers makes a measurable difference for both individuals and the workplace. [8]
Take time to explore your workplace benefits and policies closely. Reach out to HR with questions or to learn about additional resources. Staying informed not only protects your career, but also supports your ability to care for your loved one and yourself.
You Don’t Have to Do This Alone
Caregiver stress is real, and it’s okay to acknowledge when it feels like too much. Supporting someone you love shouldn’t come at the cost of your own well-being or the needs of others in your life. That’s why it’s important to lean on the resources around you. Counseling, peer support groups through your community or place of worship and respite care services can provide both relief and perspective when you need it most.
A financial advisor can guide discussions on long-term care, estate planning, and help balance caregiving costs with retirement, education savings, and other priorities.
If you’re feeling the weight of caregiving, know that you’re not alone. And you don’t have to navigate it all on your own. Professional guidance can bring clarity and confidence as you care for your loved one while still looking out for your own future.
Sources:
John J. Diak, CFP® is the Principal & Client Wealth Manager at Oatley & Diak, LLC in Parker, Colorado. He assists clients through many difficult lifestyle changes such as business downturns, retirement planning, divorce, the death of a spouse, and family estate issues among others. Oatley & Diak, LLC is a family-run registered investment advisory (RIA) firm that provides clients with investment management and financial planning services in a hands-on, intimate environment. Learn more about them at oatleydiak.com.
This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.
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