Budgeting as a caregiver

Knowing where all the money is coming from—and where it's going—is essential for keeping everything on track as a caregiver. And it doesn't have to be hard to do.

Figure out how much money is in your loved one’s accounts. 

Identify all their sources of income, such as earnings from work, Social Security, investments or pensions. If you've already gathered the account info together, you're ready to go.

Then plot out their expenses. 

Start with fixed ones like the cost of their rent or house payment. Don’t forget about other regular home expenses, such as water, electricity, heat, cable or Internet.

“For budgeting, it’s really helpful to work with a financial advisor, and also include an elder law attorney,” says Margaret Barrett, owner, founder and attorney at Safe Harbor Estate Law in St. Paul. You can also explore budgeting classes available within your community.

Use online resources to make budgeting easier. 

Look for free downloadable budget templates online. Or, try low or no-cost web-based programs such as mint.com (free) or youneedabudget.com or YNAB (free trial, then $7/month). Mint.com links different bank accounts and tracks your income and spending in one place. YNAB coaches you as you learn to allocate dollars according to a plan, rather than just spending till you run out.

Keep your distance. 

While it seems like a good idea, Barrett doesn’t recommend caregivers be added to their loved one’s bank accounts or credit cards.

“It’s cleaner if they’re not joint,” Barrett says. “Ideally, if your loved one has a trust or can make a trust, then the caregiver could be a co-trustee or trustee, which has more power and more flexibility even than a power of attorney."