How to Manage The Real Cost of Family Caregiving
💡Quick Answer
Q: What is the true cost of family caregiving?
A: The cost of family caregiving can reach thousands per year in out-of-pocket expenses, lost income, and unpaid labor. Tracking costs and sharing responsibilities can ease the burden. The National Endowment for Financial Education (NEFE) estimates that family caregivers pay roughly $6,000 out of pocket each year to support their loved ones.
Balancing Love and Money When Every Dollar Counts
Vanessa always kept a careful budget. A single mom to 8-year-old Zoe and the only daughter to her aging father, she thought she had things under control—until her dad’s health declined. Suddenly, she was paying for prescriptions, grocery extras, and in-home care—all while trying to make rent and cover after-school care.
“I didn’t even realize I was a caregiver at first,” she said. “I was just helping my dad. But the small expenses started piling up—and the stress hit hard.”
A Moment from the Middle
One Friday afternoon, Zoe needed a costume for a school play, her father’s insulin was ready for pickup, and the electric bill was due. Vanessa stood in the checkout line with her cart half full and a debit card near its limit.
“I put things back—juice, shampoo, snacks—just to afford what mattered most. I held it together until I got to the car. Then I cried.”
That moment shifted everything. She realized it wasn’t just about budgeting differently. It was about naming the invisible costs—and asking for support.
The Hidden Cost of Family Caregiving
Financial strain is one of the most common and invisible burdens in multigenerational caregiving finances. The cost of family caregiving goes far beyond the occasional errand or extra meal. Caregivers often support both children and aging parents on one income—while absorbing dozens of hidden costs. Caregivers often absorb the financial impact without even realizing it.
According to a 2025 study by the National Endowment for Financial Education (NEFE), adults in multigenerational households spend an average of $500 per month supporting other adult family members. That’s $6,000 a year—and it often doesn’t include larger expenses like home safety upgrades, lost wages, or out-of-pocket medical needs.
In my own experience caring for both of my parents, I was stunned to realize that over the course of just one year, I had paid more than $40,000 out of my personal income toward their care. As their needs escalated to requiring 24/7 supervision, I had no choice but to bring in overnight help—just so I could sleep. It wasn’t just financially overwhelming; it was sobering to see how quietly and quickly those costs added up.
Whether you’re paying for medications, stepping back from full-time work, or simply buying a few extra groceries each week, the expenses add up fast. Common financial drains include:
- Prescriptions and co-pays
- Groceries, delivery fees, or dietary accommodations
- Missed work or reduced hours
- Transportation to medical appointments
- Home modifications or safety equipment
NEFE’s research shows that 73% of multigenerational caregivers face unexpected financial consequences, including credit card debt, early retirement withdrawals, or delaying major life events. For many caregivers, it isn’t a matter of budgeting better—it’s about surviving a role they never financially planned for.
5 Small Steps Toward Financial Relief
You don’t have to figure it all out at once. But taking intentional steps can help reduce the burden of the cost of family caregiving:
1. Track All Caregiving-Related Expenses
Spend one month documenting every caregiving-related purchase—from co-pays to extra groceries. You’ll gain a clearer picture of the financial impact and areas where support might help.
2. Tap Into Local & National Resources
Programs like Meals on Wheels, utility assistance, respite grants, or medication aid can offer real relief. Start with your local Area Agency on Aging or BenefitsCheckUp.org.
3. Start the Family Money Talk
Share the true cost of family caregiving with your extended family by creating a shared document outlining your loved one’s monthly care needs and costs. Invite family members to contribute financially, provide support in other ways, or simply acknowledge your role.
4. Protect Your Own Finances
Avoid pulling from retirement or accruing debt without a clear plan. Meet with a nonprofit credit counselor or financial coach to find safe ways to navigate your dual role.
5. Set Boundaries You Can Afford
You are not selfish for saying “no.” Boundaries help protect your own well-being—and allow you to keep showing up long-term. Boundaries help you be a better caregiver to your loved one!
Vanessa’s Turning Point
After tracking her caregiving costs, Vanessa shared them with her siblings. Her brother started paying for their dad’s medication. Her church gave her grocery gift cards. And she joined an online caregiver support group for those on a budget.
“It’s still hard,” she says. “But I’m not ashamed to talk about money anymore. Asking for help is part of caregiving too.”
A Word of Encouragement
The cost of family caregiving can take a toll—but it doesn’t have to be carried alone. Your love is invaluable, but so is your financial future.
This week, take one small action: track your expenses, make a phone call, or apply for a caregiver support program. You don’t need to fix everything. You just need to begin.
💡FAQ: Understanding the Cost of Family Caregiving
Q: How much do family caregivers typically spend out of pocket?
A: On average, caregivers in multigenerational households spend $500/month—often without realizing it. Over time, that adds up to thousands of dollars annually.
Q: What kinds of expenses should I track?
A: Track anything connected to caregiving—like medications, doctor visits, mileage, groceries, home safety items, and even time off work. Once you see where the money is going, you can make a more informed plan to manage the cost of family caregiving without feeling overwhelmed.
Q: Are there programs that can help with caregiver costs?
A: Yes! Start with your Area Agency on Aging. You can also explore BenefitsCheckUp.org, Family Caregiver Alliance, or local churches and nonprofits.
Q: Is it normal to feel overwhelmed by caregiving finances?
A: Absolutely. Most caregivers face hidden financial strain. Talking about it, getting support, and setting boundaries can make a big difference.
👉 Continue to—Part 4: Rediscovering Yourself Beyond the Caregiver Role
👈 Return to— Part 2: Recognizing and Recovering from Caregiver Burnout
👉 See the full Sandwich Generation Caregiver Series Menu here