Helpr Family Resources

Toolkit: Adjusting the Family Budget for Caregiving Costs

Written by Helpr | Sep 26, 2024 6:00:10 PM

When caregiving needs arise, whether suddenly or gradually, it can have a significant impact on your family budget. Balancing these new expenses while managing day-to-day costs is no small feat. This toolkit is designed to help you navigate this transition with practical steps and resources to make the process more manageable.

1. Assessing Current Expenses and Income

Start by taking a comprehensive look at all your current expenses and sources of income. This involves not just the obvious monthly bills like rent or mortgage, utilities, and groceries, but also any recurring subscriptions, memberships, and discretionary spending. Include all income streams such as salaries, investments, or any part-time work. Having a detailed overview of where your money comes in and goes out provides a foundation for making informed decisions.

2. Identifying Care Costs

Before you can effectively adjust your budget, it's important to understand the full scope of caregiving expenses. This might include direct costs such as hiring a professional caregiver, purchasing medical supplies, or making necessary home modifications for safety. Additionally, factor in indirect costs like transportation to appointments, special dietary needs, or potential lost income if you need to reduce work hours. Having a clear estimate of these costs upfront helps in setting realistic expectations and planning accordingly.

To help you out with this, we’ve created a caregiving expense planner for you to estimate and track caregiving-related expenses.

3. Exploring Financial Assistance

There are often financial resources available to help ease the burden of caregiving, but they can be easy to overlook. Research government subsidies, local grants, and employer-sponsored care benefits that may apply to your situation. Some programs offer direct financial assistance, while others provide services at reduced costs. Knowing what's available ensures you're not missing out on valuable support that can make a significant difference in managing expenses.

4. Reallocating Your Budget

With a clear understanding of your new caregiving expenses, it's time to reallocate your budget. This involves reviewing all current expenses and identifying areas where you can cut back or adjust. Look at discretionary spending like dining out, entertainment, or non-essential purchases. Consider if there are subscriptions or services you can pause or cancel temporarily. Reallocating funds may also involve changing how you manage your savings, such as redirecting a portion to cover immediate caregiving needs.

5. Planning for the Future

Caregiving needs can change over time, and planning for the future is key to staying prepared. Setting up a separate savings fund specifically for caregiving expenses can provide a safety net for unexpected costs or future needs. Even if you can only contribute a small amount regularly, this fund can grow over time and offer peace of mind. Consider setting specific savings goals based on potential future expenses, like an emergency fund for medical equipment or additional care services.

At Helpr, we aim to ease the financial strain of caregiving. With our services, your company covers most of the care costs, leaving you with just a small hourly copay. 

Access affordable care support, ensuring that you have the resources you need when it matters most.