Caring for a parent, spouse or other loved one often comes with real costs for caregivers. AARP research found that family caregivers spend an average of $7,200 of their own money every year.
“I think it’s important that a caregiver understands all of the expenses that their loved one has in their life,” said Linda Davenport, BECU Trust Services team. “That includes any mortgage payments, rent payments, utilities, transportation and any and all expenses that they are responsible for.”
Assessing the financial needs of your loved one, planning for those and putting together a management plan for your money and your loved one’s money are important steps.
“I think oftentimes caregivers just start assisting financially without really having a clear understanding of if they even have the financial wherewithal to be able to help their loved one,” Davenport said.
She suggests requesting help from other family members, including asking them to assist financially. Also, make sure to review the insurance policies of the person being cared for. Health insurance, long-term care insurance or disability insurance might cover certain aspects of caregiving expenses, such as medical supplies, home healthcare services or assisted living costs.
A new resource, called WA Cares, is launching this year to help Washingtonians prepare for their future caregiving and long-term care needs. WA Cares offers an affordable way to access long-term care and is the result of years of research on how to make care accessible for all workers in Washington.
“It works a lot like Medicare where we all pay in a little bit from every paycheck from our first job to our last, then in return when we need care, when we’re older, we have access to it,” said Ben Vegthe, director of WA Cares Fund.
Seventy percent of Washingtonians will eventually need long-term services and support in some capacity, so this program allows workers to earn access to long-term care benefits that will be available when they need it.
“It’s going to empower families to better cope with the challenge when a loved one needs care,” Vegthe said.
As a caregiver, it’s important you care for yourself too. Make sure you’re paying attention to your own financial situation and your emotional well-being.
“If you’re not doing well, you’re going to have trouble taking care of someone else,” Davenport said.
For more tips and tools on planning for caregiver finances, visit the AARP website.
Sponsored by AARP.
Segment Producer Suzie Wiley. Watch New Day Northwest at 11 a.m. weekdays on KING 5 and streaming live on KING5.com. Contact New Day.
