Caring for a loved one is a true act of love and compassion, but despite how important this role is, it often becomes a serious challenge for your wallet, time, and nerves. Many caregivers in the U.S. don’t fully realize how much constant caregiving can affect their finances and emotional well-being. As a result, many of them often face a difficult choice: to help the one who needs it or to maintain their own balance.
If you are taking care of an elderly parent, partner, or relative with a chronic illness, you’ve probably already faced growing costs. You may need to pay for long-term treatment, medication, and transportation. And caregiving may also reduce earned income if work hours are cut. Over time, fatigue, depression, anxiety, and burnout start to build up.
This article was created to give you real, practical advice on how to manage caregiving expenses without sacrificing your mental health.
The Real Cost of Caregiving Today
In 2025, about 63 million Americans were providing unpaid care for their relatives — that’s almost one in four adults. According to AARP, the financial cost of caring for relatives averages about $7,200 per year, which caregivers pay out of their own pocket. This money goes toward food, medications, transportation, and the daily needs of the person receiving care.
Hiring professional help significantly increases costs. In-home care usually costs between $25 and $35 per hour, but in large cities, the price can exceed $40 per hour. The cost of caregiving in a nursing home averages $70,800 per year, while 24-hour home care can cost more than $20,000 per month, depending on the region. A more affordable option is adult day care, which allows you to leave your loved one under supervision during the day. The average cost of such services is about $103 per day.
But the expenses don’t end there. There are also many hidden costs — unpaid time off work, home repairs and modifications, transportation, additional medical bills, emergency hospital visits, and reduced retirement savings. It’s especially challenging for those caring for people with dementia. Caring for someone with Alzheimer’s disease takes an average of about 31 hours per week, and such caregivers are more likely to experience stress and health problems than others.
How Financial Pressure Impacts Mental Health
Financial stress is rarely an isolated problem — it affects almost everything: how you think, sleep, and handle everyday challenges. People who constantly live under money pressure are more likely to experience anxiety, depression, and emotional burnout.
- When you worry about bills every day, it becomes hard to stay calm. You may lie awake at night, thinking about how to stretch your paycheck, whether you’ll have enough for medications or utilities. Lack of sleep makes you irritable, exhausted, and less able to make good decisions.
- Over time, a sense of guilt appears. Many caregivers believe they are not doing enough, even when they are already overwhelmed. This feeling pushes them to take on even more, neglecting rest and their own needs.
- Financial tension often affects relationships, too. Money can become a source of arguments with siblings over shared expenses or a cause of conflict with a partner. All this adds to fatigue and a feeling of isolation.
The Centers for Disease Control and Prevention (CDC) warns that chronic stress, which is common among long-term caregivers, can lead to high blood pressure, heart problems, and a weakened immune system.
When your emotional health declines, your financial habits often follow. People start postponing bill payments, missing due dates, or taking out loans to cover short-term expenses. But it’s important to remember: recognizing these patterns is not a sign of weakness. It’s the first step toward regaining control and slowly restoring your inner balance.
Ways to Protect Your Mental Health While Managing Care Costs
Here are some practical steps you can take to help protect your finances and mental health:
Seek Help from the Government and Nonprofits
Many people who care for their loved ones don’t realize that there are several official programs in the U.S. designed to help them. One of them is the National Family Caregiver Support Program (NFCSP). This federal initiative funds services such as counseling, temporary relief care, and caregiver training. To learn what options are available in your area, you can contact your state’s Department of Aging or your local Area Agency on Aging (AAA).
If your loved one receives assistance through Medicaid, it’s worth looking into home care waivers and Home and Community-Based Services (HCBS) programs. These programs allow certain family members to receive payment for providing home care.
In addition, veterans and their spouses may qualify for benefits through the VA Aid and Attendance program. It provides monthly payments to help cover long-term care or in-home assistance.
These programs exist because the U.S. government recognizes that caring for someone is real work, often unpaid.
Take Advantage of Tax Incentives
If you pay most of your relatives’ living expenses and their income is below the IRS threshold, you can claim them as a dependent. This allows you to receive tax deductions and credits. In addition, you can deduct part of your medical expenses if they exceed 7.5% of your adjusted gross income.
If you hire a caregiver to continue working, you may qualify for the Child and Dependent Care Credit. It applies not only to minor children but also to adult relatives under your care. Congress is currently considering the Credit for Caring Act, a bipartisan initiative that would provide up to $5,000 in federal tax credits to help cover long-term care expenses.
Some states already have their own tax programs. For example, Oklahoma and Nebraska introduced new caregiver tax credits in 2025. The amount of these credits depends on the caregiver’s income and the health condition of the person receiving care.
To properly file your tax return, it is recommended to consult a Certified Public Accountant (CPA) or a registered tax agent experienced in family caregiving cases.
Get Support from a Group or Caregiver Organization
When a person stays alone with their problems for too long, even minor difficulties can feel overwhelming. Support from people who understand you and go through similar situations helps you realize that you’re not alone.
The Caregiver Action Network offers online support groups and webinars where participants can share their experiences and get advice from professionals. The Alzheimer’s Association also provides both in-person and virtual meetings. Hospitals and local nursing homes often organize similar programs.
Talking with other caregivers helps not only emotionally but also practically. People share useful information about where to find local resources, which grants are available, and which healthcare providers are the most reliable. In addition, you can use the Eldercare Locator, a federal online tool that helps you find nearby programs and organizations that support those who care for elderly or ill relatives.
Plan Expenses and Decision-Making in Advance
Impulsive decisions often lead to extra expenses. The earlier you start planning, the calmer and more stable your financial situation will be.
Start by figuring out exactly how much you spend each month. Include all paid in-home care hours, supplies, medications, transportation, and home expenses. Be honest with yourself: write down real numbers, not the ones you’d like to see. Use modern apps to simplify tracking. Mint, You Need a Budget (YNAB), and EveryDollar sync with your bank and categorize expenses automatically. Each shows spending trends so you can cut waste.
Discuss the plan with your family members or anyone who helps you care for your loved one. It’s important to assign responsibilities in advance: who pays the bills, who manages the insurance, and who tracks expenses. This will reduce stress and help avoid confusion.
Keep all important documents, medical records, contracts, insurance policies, and powers of attorney in one place. To make sure nothing gets lost, make digital copies and save them in cloud storage such as Google Drive or Dropbox.
Try to save about 5% of your monthly income, as having an emergency fund will help you avoid panic in the event of an unforeseen event. Review your financial plan at least every few months or whenever your loved one’s needs change. Regular check-ins will help you spot potential problems early and prevent a crisis.
Consider Temporary Financial Support Options
If your expenses suddenly increase, don’t panic — there are ways to close the budget gap. Start with local nonprofit organizations. Many foundations and community centers offer small grants to caregivers. You can find such programs through the 211.org platform, which lists verified resources across the country.
Sometimes families turn to loan options from 1F Cash Advance to cover urgent caregiving expenses and treatment costs, especially when government aid or community support isn’t enough. If you own your home, you may consider a Home Equity Line of Credit (HELOC) — but only if you’re confident that you can repay it without straining your budget. Otherwise, you risk falling into long-term debt.
And most importantly, before taking out a loan, check whether the service provider offers a flexible payment schedule or an income-based payment plan. This can help you avoid unnecessary financial pressure and keep control over your finances.
Make Time for Rest and Personal Activities
When you constantly forget about yourself, it eventually affects the person you are caring for. Without rest and recovery, it’s impossible to take care of others effectively. Try to give yourself small breaks every day. Even ten minutes of quiet, a short walk outside, or a few deep breaths can help you calm down and regain focus. Once a week, set aside some time just for yourself — watch your favorite show, meet a friend, or simply read a book.
Don’t neglect your own health. Visit your doctor regularly, get checkups, eat well, and drink enough water. If you have access to respite care, use it.
Reach Out for Emotional Support When Needed
If you notice that you’ve been feeling sad, irritable, or emotionally drained more often, don’t ignore these signs. Asking for help is normal. Today, many professionals offer online sessions through platforms like BetterHelp and Talkspace. They accept insurance or provide flexible payment options to make therapy more affordable.
You can also call a free caregiver support hotline available 24/7. The national SAMHSA helpline (1-800-662-HELP) operates 24/7 and provides confidential consultations to help you find the right resources.
Try using apps for stress relief and mindfulness, such as Calm, Headspace, or Insight Timer. Even short daily sessions can reduce anxiety and help restore emotional balance. Don’t isolate yourself. Find at least one person you can talk to openly, who alone can make a big difference.
Pay attention to warning signs like constant fatigue, insomnia, irritability, or worsening health, as they indicate it’s time to pause and take care of yourself. Asking for help is not a weakness. It’s a conscious step that helps you preserve your strength and continue caring for the ones you love.
The Real Takeaway: Care Without Losing Yourself
Caring for someone is one of the most selfless things you can do. But if you exhaust yourself or fall into financial ruin, the situation helps no one. By learning how caregiving costs work, using available programs, and protecting your mental health, you create a sustainable path.
Image by freepik from freepik
The editorial staff of Medical News Bulletin had no role in the preparation of this post. The views and opinions expressed in this post are those of the advertiser and do not reflect those of Medical News Bulletin. Medical News Bulletin does not accept liability for any loss or damages caused by the use of any products or services, nor do we endorse any products, services, or links in our Sponsored Articles.