Financial Preparation for Elder Care: What You Should Know

Financial Preparation for Elder Care: What You Should KnowPhoto Credit: Pete

Financial preparation is one of the most important parts of planning ahead for elder care. If you have an aging loved one, now is the time to start thinking about many of the topics presented in this article.

Your Money Now and Your Money Then

It’s important to be smart with your money. Being frugal now will allow you to save money for the future. In other words, you shouldn’t wait till your loved one needs care to start preparing. If care is already needed, there are still ways for you to save money (explained at the bottom of this article).

As an example of unexpected costs, you might need to remodel your parents’ house or your house at some point with ramps or handrails to make a safer environment for them. Obviously, this can cost a lot of money, and without savings the costs can come as a surprise.

The Senior’s Input

When planning financially for senior care, it is important to sit down and have a talk with your parent or loved one about finances. Figure out what your budget is, what kind of care is needed, and how much money can be used for care.

It’s also a good a idea to find out exactly what it is the senior wants. Decide whose money will be used for care and who will be the one making financial decisions.

What are your options?

Do your research. Figure out the best option financially for you and your loved one. Nursing homes and assisted living facilities might seem ideal, but they are costly. Nursing homes can range from $193-$213 a day, and assisted living can be up to $3,261 a month.

If these facilities are too costly, you can always turn to in-home care. Many families choose in-home care because it is more cost effective and relieves stress for the family. At CareFamily, we highly advise all families to at least consider home care, since it has so many advantages for all parties involved.

How to Save Money

There are several ways you can save on senior health care. These include long term care insurance, reverse mortgages, or government programs. Download our white paper (to the right) entitled “5 Ways to Save Big on Senior Care” to learn more about ways you can start saving on senior care right now.