Caring for a Family Member When Money is Tight

Caring for an elderly parent or family member is something that is becoming more and more common. There is something special about caring for the person that raised you and reciprocating the care they gave you. However, this can also be a very stressful situation and that stress is amplified with financial concerns. Caring for a family member when money is tight can be very difficult, but there are some things you can do to help alleviate some of the stress and make the best of the situation.

Open the Lines of Communication Early

One of the most important things you can do in a situation like this is open the lines of communication between yourself and the family member early. It is crucial to start communicating early on to avoid a situation where the person’s health has deteriorated before any important decisions have been made and they are unable to contribute.

Some things that should be discussed early on include details of a will and determining who gets what. Also, it is important to discuss long term living options such as whether or not the person you are caring for will continue to live at home or move into an assisted living situation or even move in with you. It is important to discuss these things early on so that you have a plan in place and can be prepared moving forward.

Create a Budget for Both Parties

As with any financial issue, it is critical that you create a budget for both yourself and the person whom you are caring for.

Generating a budget for the family member you are caring for is typically much easier as they already have a set amount of income to work with. However, creating your own budget can me much more complex as you have numerous factors to account for such as caring for the rest of your family, investments, and even your own retirement savings.

One of the biggest mistakes people make when caring for an elderly family member is that they don’t account for their own retirement and do not make the proper contributions to their own superannuation. This can be a disastrous mistake as it can lead to serious financial troubles in your own retirement. To create a budget for yourself, you must first take into account how much you must be saving for your own retirement and then go from there. There are many resources on the web that can help with this if you take the time to look around. For example, you can find a Superannuation Calculator here.

Agree to Discuss Purchases

Finally, it is a good idea to come to an agreement with the person you are caring for about discussing purchases prior to actually making them. This may be a bit awkward and uncomfortable, but it is important to make them understand that this is about protection rather than control. Unfortunately, the elderly have become prime targets for unethical practices and scams designed to take their money. Setting up this type of agreement can help protect your loved one from becoming a victim and prevent the rise of further financial pressures.

Caring for a family member is never easy and it becomes even more of a challenge when money is tight. Following some of the guidelines set forth in this article can help to navigate these strenuous times and help avert financial disaster. Although caring for an elderly family member may be difficult, it can also be one of the most cherished and rewarding times of your life.

Tags: Assisted living, Budget, Family, Finance, Line of communication, Old age, Purchasing, Retirement

Category: Budget, Family Finances