Costs of Careing for an Aging Parent

In addition to the emotional issues involved, caring for an aging parent often stretches a family’s financial resources. According to Consumer Reports, taking in a parent can add $7,000 or more to household expenses, including higher utility, food, and transportation costs and, possibly home remodeling. A 2004 study of long-distance care providers estimated a monthly cost of $392 ($4,700 a year), which includes travel, medicine, phone bills, meals, and home maintenance. The cost is much higher when the value of lost wages and retirement plan savings, as a result of caregiving, is included. Fortunately, there are community services and tax benefits to decrease or offset caregiving costs. Three “big-ticket” financial issues related to long-term care of an aging parent are: a parent moving in with an adult child, moving a parent into an assisted living facility, and assisting a parent financially.