Financial wellness means more than covering monthly bills. It reflects whether people feel steady, prepared, and confident about the future. For many credit union members, that sense of stability erodes quietly. Income may stay the same, and spending habits may not change much, yet pressure builds in ways that are not obvious on a balance sheet.
Life responsibilities often drive that pressure. Supporting aging parents, managing health changes, or stepping into a caregiving role can disrupt even careful financial planning. These responsibilities rarely come with advance notice. They arrive alongside emotional stress and demand immediate attention.
Financial wellness becomes harder to maintain when decisions feel urgent and emotionally charged. Members may feel they are doing everything right but still falling behind. This disconnect creates anxiety and uncertainty, even for households that previously felt secure. When financial wellness weakens, it affects more than money. It impacts confidence, long-term planning, and the ability to make thoughtful decisions. Understanding what undermines financial wellness is the first step toward protecting it.
The Hidden Costs of Caregiving
Caregiving introduces costs that families often underestimate at the start. Many caregivers expect to help occasionally or temporarily. Over time, care needs expand, and expenses follow. What begins as helping with transportation or errands can evolve into ongoing financial responsibility.
Research shows that 78 percent of family caregivers have taken or are considering actions that negatively affect their financial well-being to manage care costs. These actions often include using emergency savings or taking on high-interest debt. These choices reflect necessity, not poor planning.
Caregiving costs feel unavoidable because care feels non-negotiable. Loved ones depend on it. Caregivers prioritize immediate needs over long-term consequences, even when they understand the trade-offs. This pattern repeats month after month. The financial impact of caregiving often stays hidden because it spreads across many small decisions. Individually, each choice seems manageable. Collectively, they create lasting strain that reshapes a family’s financial future.
Caregiving Expenses Add Up Over Time
Out-of-pocket caregiving expenses rarely stay flat. They grow as care needs increase and circumstances change. Families may pay for medical supplies, transportation, uncovered services, or home support that insurance does not fully cover.
On average, family caregivers spend about $7,200 each year, often representing roughly 26 percent of their personal income. For many households, this level of spending reshapes priorities and limits flexibility. Unlike predictable household expenses, caregiving costs fluctuate. One unexpected medical need can change a monthly budget overnight. Planning becomes difficult when expenses feel uncertain and open-ended.
As costs continue to rise, caregivers often feel trapped between providing care and protecting their own financial health. Without guidance, they may assume these expenses are unavoidable, even when better options exist.
Why Caregiving Financial Stress Often Goes Unspoken
Many caregivers do not talk openly about the financial impact of care. Some feel responsible for handling it quietly. Others worry about appearing unprepared or burdening others with their concerns. Caregiving also changes how people view their role. Many prioritize the needs of the person receiving care over their own well-being. Financial strain becomes something to absorb rather than discuss.
Because the stress remains unspoken, warning signs often go unnoticed. Savings decline gradually. Credit balances rise slowly. Financial pressure builds in the background without triggering immediate concern. This silence makes it harder for caregivers to access help. Without conversation, support arrives late or not at all. By the time financial strain becomes visible, options may feel limited and recovery more difficult.
Emotional Stress Shapes Financial Decisions
Caregiving places people under constant emotional pressure. Worry, fatigue, and uncertainty affect how decisions feel and how risks are perceived. Even simple financial choices can feel overwhelming. During emotional stress, people seek relief. Using savings or credit may feel like the quickest way to solve a problem. These choices provide short-term stability, even if they create long-term risk.
Stress also affects how information is processed. Complex explanations feel harder to absorb. Repeated instructions may feel frustrating rather than helpful. This makes navigating financial systems more difficult during caregiving.
Support that acknowledges emotional strain helps caregivers think more clearly. When guidance feels calm and patient, people regain confidence. Emotional understanding becomes a practical tool that improves financial decision-making.
Why Financial Education Alone Isn’t Enough
Financial education supports healthy habits, but caregiving introduces challenges that go beyond budgeting and saving. Caregivers must navigate insurance rules, Medicare options, and eligibility requirements that directly affect costs.
Understanding how to save money does not explain which services are covered or how to reduce unnecessary expenses. Many caregivers learn through trial and error, which can be expensive and stressful.
Caregiving also requires coordination. Families manage appointments, paperwork, and deadlines across multiple systems. Without guidance, this complexity increases the risk of missed opportunities or avoidable costs. Effective support focuses on navigation as much as knowledge. Caregivers benefit from knowing where to start, what to prioritize, and how to avoid common pitfalls that drain resources.
Caregiving Competes with Long-Term Financial Goals
Caregiving does not replace other financial responsibilities. It competes with them. Families must balance care costs alongside housing, education, retirement savings, and daily living expenses.
Because care feels urgent, long-term goals often take a back seat. Retirement contributions may slow. Savings goals may shift. These decisions feel temporary but can last for years. Over time, delayed planning compounds. Missed contributions reduce growth. Reduced savings limit future options. Caregivers may struggle to regain momentum once care responsibilities ease.
Protecting long-term goals during caregiving requires awareness and support. Without it, families risk sacrificing future security while trying to meet present needs.
Caregiving Disrupts Long-Term Planning
Long-term planning often feels impossible during caregiving. Families focus on immediate tasks and postpone conversations about the future. Estate planning and multigenerational planning frequently fall to the bottom of the list. Delays create vulnerability. Without clear plans, families face greater stress later. Legal documents may be outdated or hard to locate. Decisions become more complicated under pressure.
Caregiving also affects how families think about the future. Uncertainty makes planning feel abstract or overwhelming. Without support, families may avoid it altogether. Addressing planning alongside caregiving helps families maintain continuity. Clear plans reduce future stress and support long-term financial wellness across generations.
Financial Wellness Must Include Care Support
Financial wellness reflects real life. For many families, caregiving is not a short-term disruption. It is an ongoing responsibility that shapes financial decisions for years. Supporting financial wellness means addressing caregiving directly. Guidance on insurance, Medicare, and care logistics helps families manage costs before they increase.
Care support strengthens confidence. When caregivers understand their options, they feel more in control. This clarity supports better financial outcomes over time. Financial wellness improves when families feel supported, informed, and prepared to manage both present responsibilities and future goals.
How Credit Unions Can Support Members Through Care
Credit unions already hold a trusted place in their communities, which positions them well to support members facing caregiving responsibilities. Members often turn to familiar institutions during times of uncertainty, especially when financial decisions feel complicated or emotionally charged. This trust creates an opening to offer support that goes beyond traditional banking services and speaks directly to real-life needs.
Support is most effective when it prioritizes guidance over products. Caregivers need help understanding options, navigating systems, and identifying next steps rather than evaluating new financial offerings. Clear explanations and practical direction help members make confident decisions during stressful moments. When guidance feels accessible and patient, members are more likely to engage and ask questions rather than avoid decisions.
Care support also strengthens the credit union’s role as a long-term partner. When members feel understood and supported during caregiving, they see the institution as invested in their well-being, not just their accounts. This perception deepens trust and encourages ongoing engagement across different life stages.
Including caregiving within financial wellness efforts reflects a genuine commitment to members’ daily realities. It acknowledges that financial stability depends on life circumstances, not just income or savings. By addressing caregiving needs, credit unions reinforce their community mission and build stronger, more resilient relationships with the families they serve.
How Homethrive Helps Support Financial Wellness
Homethrive helps families navigate caregiving while protecting financial stability. By offering guidance on Medicare, insurance, and care logistics, Homethrive helps caregivers manage costs more effectively. This support reduces unnecessary spending and helps families avoid high-interest debt. Caregivers gain clarity and confidence when decisions feel overwhelming.
Homethrive complements a credit union’s mission by extending support beyond traditional financial tools. Families receive help from live experts and 24/7 digital access that feels personal and steady. This dual approach supports members without straining internal teams and strengthens long-term relationships built on trust.
Supporting Caregivers Builds Long-Term Trust
Support during caregiving shapes how families remember an institution long after the crisis passes. When people feel overwhelmed, they notice who takes the time to help them understand the next steps and who offers steady guidance without pressure. These experiences serve as reference points that shape how families define trust.
When members feel supported during financial stress, trust grows in a practical way. They become more confident in reaching out with questions and more open to conversations about long-term planning. Trust formed during caregiving does not rely on promotional messaging or product offers. It develops through consistent, human support when decisions feel heavy and time feels limited.
Care support also reframes financial wellness as something lived, not abstract. It shows that support goes beyond account balances and budgeting tools. By dealing with real-life challenges, credit unions demonstrate that they understand what members face and are willing to stand alongside them.
Trust built during caregiving carries forward into future financial decisions. Families who feel supported remain engaged, deepen relationships, and view the credit union as a long-term partner rather than a transactional service.
A More Complete Approach to Financial Wellness
Financial wellness includes preparation for life’s challenges. Caregiving shapes financial outcomes for many families. Credit unions that recognize caregiving as part of financial wellness can help members protect stability and plan confidently. Support during caregiving works with credit union missions and strengthens long-term relationships. By addressing caregiving, credit unions help members build financial wellness that endures.
By partnering with Homethrive, credit union members reclaim valuable time and energy to focus on their work, families, and financial well-being.
Show your team they don’t have to choose between their careers and caregiving responsibilities. Contact us today to explore how Homethrive can enhance your employees’ well-being and productivity.
