As April ushers in the spring season, it also marks National Financial Literacy Month—a time dedicated to raising awareness about the importance of financial education and empowering individuals to make informed money decisions.

For caregivers, this observance carries special significance. Whether caring for an aging parent, a disabled spouse, or a child with special needs, understanding the financial aspects of caregiving is crucial for today’s responsibilities and future care needs.

What is Financial Literacy Month?

This month-long observance highlights the importance of financial education and encourages Americans to establish and maintain healthy financial habits. For caregivers—who often face unique financial challenges—developing strong financial literacy skills is particularly important.

Caregivers juggle not only the day-to-day expenses of their own lives but also navigate the complex financial landscape of healthcare costs, insurance claims, benefit applications, and long-term care planning for their loved ones. Moreover, they must simultaneously prepare for future care needs, creating a multi-dimensional financial challenge requiring specialized knowledge and strategic planning.

When is Financial Literacy Month 2025?

April is Financial Literacy Month. Established in 2004, the United States designated April National Financial Literacy Month, connecting Americans with money-saving tips for families to increase their financial security.

How Caregiving Affects Finances

The financial impact of caregiving extends far beyond direct out-of-pocket expenses. According to recent studies, family caregivers spend an average of $7,000 annually on caregiving expenses, with long-distance caregivers spending nearly $12,000. These figures, however, only tell part of the story.

Direct Financial Costs

• Out-of-pocket expenses: Caregivers often pay for medications, medical equipment, home modifications, transportation, and professional services not covered by insurance.
• Household contributions: Many caregivers contribute to their care recipient’s household expenses, including rent/mortgage, utilities, and groceries.
• Legal costs: Estate planning, guardianship proceedings, and other legal services represent significant expenses for many caregivers.

Indirect Financial Costs

• Reduced work hours: Nearly 60% of caregivers report reducing their work hours to accommodate caregiving responsibilities.
• Career sacrifices: Many caregivers decline promotions, training opportunities, or job transfers that would conflict with their caregiving duties.
• Early retirement: Some caregivers retire earlier than planned, reducing lifetime earnings and retirement savings.
• Lost benefits: Reduced work hours may result in the loss of employer-sponsored health insurance and retirement contributions.

Long-term Financial Impact

The actual cost of caregiving becomes apparent when we also examine the long-term effects:

• Reduced Social Security benefits: Lower lifetime earnings translate to reduced Social Security payments in retirement.
• Depleted retirement savings: Many caregivers tap into retirement accounts to cover caregiving expenses.
• Increased debt: Credit card debt and loans often accumulate as caregivers struggle to balance expenses.
• Delayed financial goals: Caregivers may postpone or abandon ideas of homeownership, education, and other financial milestones.

This financial strain doesn’t just affect current stability—it significantly impacts the caregiver’s future care planning, creating a cycle that can extend across generations.

Ways Caregivers Can Save Money

Despite these challenges, informed caregivers can navigate the financial aspects of caregiving more effectively. The following are key strategies to consider during Financial Literacy Month.

Understanding Insurance Coverage

Insurance literacy is essential for caregivers. Take time this month to:

• Review your loved one’s health insurance policy in detail, including coverage limitations, co-pays, and deductibles
• Learn which preventive services are covered at 100%
• Understand prior authorization requirements to avoid denied claims
• Appeal insurance denials when appropriate
• Explore supplemental insurance options that might fill coverage gaps

Many caregivers don’t realize that some insurance plans cover services like home health care, medical equipment, or even home modifications when prescribed by a physician. This insurance for caregivers may help ease the financial burdens often connected with caring for a loved one. A thorough understanding of these benefits can save thousands of dollars annually.

Leveraging Employer Benefits

Many employers offer benefits specifically designed for caregivers, yet these resources often go underutilized. This Financial Literacy Month, explore:

• Flexible spending accounts (FSAs) or health savings accounts (HSAs) that can be used for eligible medical expenses
• Employee assistance programs (EAPs) that may provide free counseling, legal consultation, or referral services
• Paid family leave options beyond what’s legally required
• Flexible work arrangements that can help you maintain employment while caregiving
• Dependent care assistance programs
• Mental health benefits that support caregiver well-being

Some progressive employers offer specialized caregiver benefits, including subsidized backup care, caregiver navigation services, or direct financial assistance for caregiving expenses.

Connecting with Support Communities

Knowledge sharing within caregiver communities can provide valuable insights and money-saving tips:

• Join employee resource groups (ERGs) focused on caregiving or work-life balance
• Participate in online forums and support groups where caregivers share cost-saving strategies
• Attend virtual workshops or webinars on financial topics relevant to caregiving
• Connect with local caregiver support organizations that may offer grants or financial assistance
• Explore disease-specific organizations that provide resources for caregivers (such as the Alzheimer’s Association or American Cancer Society)

These communities can provide practical advice on everything from negotiating medical bills to finding affordable respite care—knowledge that can significantly reduce caregiving costs.

Navigating Government Programs

Government benefits can substantially reduce caregiving costs, but many individuals fail to use the programs due to their complexity:

• Medicare: Understand what services Medicare covers for those 65+ and how Medicare Advantage plans differ from traditional Medicare
• Medicaid: Explore eligibility requirements and covered services, which can include home and community-based care options not covered by Medicare
• Veterans’ benefits: If your loved one served in the military, research Aid & Attendance benefits, VA home care, and other specialized programs
• Social Security: Learn about disability benefits and how they interact with other income sources
• Tax benefits: Explore dependent care credits, medical expense deductions, and caregiver tax credits where available

For Homethrive members, working with a Care Guide can help individuals navigate these complex systems more effectively.

Understanding Tax Implications

Tax planning represents a significant opportunity for caregivers to reduce overall expenses:

• Determine if you can claim your care recipient as a dependent on your tax return
• Track and document medical expenses that exceed the threshold for deduction
• Explore the Child and Dependent Care Credit if you’re working while paying for care
• Understand potential tax deductions for home modifications made for medical reasons
• Consider filing as “Head of Household” if eligible, which provides more favorable tax rates

Consulting with a tax professional who understands caregiving situations can often identify additional savings opportunities.

Ways Employers Can Help Caregivers Save Money

Employers play a crucial role in supporting the financial well-being of their caregiving employees. During Financial Literacy Month, organizations should consider implementing or enhancing the following caregiver-friendly initiatives.

Providing Comprehensive Caregiver Benefits

Forward-thinking organizations recognize the need for specialized benefits that address caregiving employees’ unique financial challenges. Benefits like Homethrive save time and money for the caregivers on your team by offering a combination of live support and access to a personalized digital portal.

Homethrive provides instant recommendations for local caregiving products and services, and access to an assigned social worker that can help caregivers navigate insurance coverage, research affordable respite and transportation options, and find senior communities in their budget.

These benefits save caregivers money and reduce absenteeism and turnover, creating a positive return on investment for employers as well as caregivers.

Supporting Employee Resource Groups

Employer-sponsored ERGs focused on caregiving provide valuable support:

• Allocate budget and resources for caregiver-focused ERGs
• Ensure leadership participation and visibility
• Create platforms for knowledge sharing among caregiver employees
• Use ERGs to inform company policies and benefits
• Provide educational opportunities through ERG programming

These groups foster community while offering practical financial strategies tailored to caregivers’ unique situations.

Creating a Caregiver-Supportive Work Culture

Organizational culture significantly impacts caregivers’ ability to maintain financial stability:

• Train managers to understand and accommodate caregiving responsibilities
• Implement flexible work arrangements without career penalties
• Normalize conversations about caregiving challenges
• Reduce stigma associated with utilizing available benefits
• Ensure promotion and advancement opportunities remain accessible to caregivers

Caregivers who can maintain their career trajectory while fulfilling their caregiving responsibilities preserve financial stability and future earning potential.

Offering Financial Incentives

Direct financial support can make a meaningful difference:

• Caregiving stipends or reimbursement programs
• Student loan repayment assistance for employees with caregiving responsibilities
• Retirement plan matching contributions that continue during caregiving leaves
• Performance bonuses that account for caregiving challenges
• Tuition assistance for career advancement despite caregiving responsibilities

These financial incentives help offset caregivers’ substantial costs while maintaining their commitment to work and family responsibilities.

How Caregivers Can Financially Prepare for Their Future

Perhaps the most overlooked aspect of caregiver financial literacy is planning for one’s own future care needs. This Financial Literacy Month, consider these essential steps.

Facilitating Family Discussions

Open communication forms the foundation of future care planning:

• Initiate candid conversations with family members about care preferences and expectations
• Discuss potential roles and responsibilities before a crisis occurs
• Document these discussions to avoid future misunderstandings
• Revisit the conversation periodically as circumstances change
• Address potential financial contributions and limitations honestly

These challenging but necessary conversations help establish realistic expectations and prevent family conflicts that can deplete resources.

Estate Planning

Proper estate planning is essential for current caregivers and future care recipients:

• Create or update your will
• Establish powers of attorney for healthcare and finances
• Consider advance directives that clearly outline your care preferences
• Explore trust options that may protect assets while ensuring care access
• Review beneficiary designations on all financial accounts and insurance policies

Estate planning isn’t just for the wealthy—it’s a fundamental component of financial literacy that ensures your wishes are honored while preserving family resources.

Insurance Planning

Several insurance products specifically address future care needs:

• Long-term care insurance: Evaluate policies that cover home care, assisted living, and nursing home care
• Life insurance: Consider policies with living benefits or accelerated death benefits
• Disability insurance: Protect your income if you become unable to work
• Critical illness insurance: Provides lump-sum benefits upon diagnosis of specific conditions

Try to obtain these policies well before they’re needed, as premiums are more affordable, and underwriting is less restrictive.

End-of-Life Planning

While no one likes to consider end-of-life planning, it’s a critical aspect of financial responsibility:

• Research funeral and burial costs
• Consider prepaying for funeral arrangements
• Explore less expensive alternatives like cremation or green burial
• Document your preferences to prevent family members from overspending during emotional times
• Designate funds specifically for these expenses

These preparations ensure your wishes are honored and prevent financial strain on your loved ones during a difficult time.

Embracing Financial Literacy as a Caregiver

As we observe Financial Literacy Month this April, caregivers should recognize that financial education isn’t just about managing today’s expenses—it’s about creating sustainability for the entire caregiving journey, including their own future needs.

Employers, meanwhile, have both an opportunity and responsibility to support the financial well-being of their caregiving employees. By implementing comprehensive benefits, fostering supportive communities, and creating flexible work environments, organizations can help caregivers maintain economic stability while providing quality care.

The financial aspects of caregiving may seem overwhelming, but with proper education, planning, and support, caregivers can navigate these challenges successfully. This Financial Literacy Month, take at least one concrete step toward stronger financial literacy—reviewing an insurance policy, joining a support group, or initiating a family conversation about future care needs. Remember that financial preparation isn’t just about spreadsheets and savings accounts—it’s about creating peace of mind and ensuring quality care across generations. By embracing financial literacy today, caregivers can build a more secure tomorrow for themselves and their loved ones.

By partnering with Homethrive, you can help employees reclaim valuable time and energy to focus on their work, families, and personal 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.