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🔥 Refuel | Issue #3
A Newsletter from Faith + Gasoline
📅 Subject: The Cost of Caregiving: How Will You Pay for It?
🛠️ Welcome to Refuel
Hey Fam,
Caregiving isn’t just an emotional and physical challenge—it’s a financial one, also. Right now, there are an estimated 53-55 million unpaid caregivers in the U.S., many of whom are sacrificing work, savings, and financial security to care for aging parents.
Unpaid caregivers in the United States provide an estimated $873.5 billion worth of care annually. UNPAID.
The reality? Long-term care is expensive, and most people don’t have a plan. Whether you’re providing unpaid care or facing the possibility of needing professional help down the road, understanding the financial side of caregiving is crucial.
Today, we’re diving into the business of caregiving—what it costs, who pays for it, and how you can prepare.
📖 Verse of the Week:
"The prudent see danger and take refuge, but the simple keep going and pay the penalty." – Proverbs 27:12
Planning ahead isn’t just wise—it’s necessary. If your parents don’t have a financial plan for long-term care, you might be the one shouldering the cost.
🚗 Story from the Road: When I Realized Caregiving Was a Financial Decision
I decided to be the primary caregiver because it made the most sense financially.
I never considered the cost of caregiving until I had no choice. It started with small things: helping with bills, picking up prescriptions, and covering groceries. But then came the more significant expenses—and that conversation begins when you realize that your parent(s) can’t live alone or be alone for any significant amount of time.
The moment that hit me hardest? When I realized my mother’s plan to cover her care was non-existent. She planned to die in her house, and that was it. Um…what?
Like so many, we were unprepared. She never planned to get sick, and my siblings and I never thought she would. She was very meticulous about diet and exercise her whole life. But God had other plans. And my mom had a secret sweet tooth 🦷. More on that later…
Caregiving isn’t just about time and love—it’s about money. If you’re not thinking about the financial side of caregiving now, trust me—you need to start.
💰 The Reality of Paying for Caregiving
✅ The Cost of Care:
Assisted Living: $54,000/year (national average)
In-Home Care: $27/hour (can exceed $60,000/year for full-time) - our caregivers were $29.95 an hour with a 4-hour minimum 🕰️⌚🕒
Nursing Home: $100,000+/year
Memory Care: $5,000–$7,000/month to start
(These are rough estimates but close to what I researched in MO. Search your area to get an idea of how much you need 💰💰💰💰 for private pay.)
✅ Who Pays for It?
Medicare – Covers short-term rehab stays but not long-term care.
Medicaid helps with long-term care only if your loved one has few assets. In MO, you can only make $750 a month to qualify instantly. Check your state’s requirements today.
Long-Term Care Insurance – Only 3-4% of Americans have it. And read the fine print if you do have it!!! There are many stipulations on how it can be used.
Out-of-Pocket Costs – Most families pay out of pocket, often depleting their savings. However, it is frequently the most cost-effective strategy. If your parents worked and drew any retirement income, they may not qualify for Medicaid. You may want to consult an estate planning attorney to guide this process because your parents may not be rich enough for private pay but not poor enough to get sick and use Medicaid. An attorney can advise on how to proceed and quash any issues siblings, or other relatives have about how the estate gets divided.
📌 Reality Check: If your parent needs long-term care, how will it be paid for?
⛽ Quick Refuel: How to Financially Prepare for Caregiving
💡 1. Get the Hard Conversations Started
Ask your parents about their savings, insurance, and financial plans.
If they don’t have a plan, start researching options now.
💡 2. Look Into Medicaid Planning
Medicaid covers long-term care, but only if assets are below a certain level.
Some families spend down assets or use trusts to qualify—this takes planning. If there are multiple assets, like homes, investment accounts, and cars, this may be a good time to contact an elder care lawyer.
💡 3. Explore Financial Assistance Programs
Veterans Benefits – If your parent served in the military, they may qualify for aid.
State and Local Programs – Some states offer caregiver stipends or tax breaks.
💡 4. Protect Your Own Finances
Don’t drain your savings. Many caregivers cut work hours or quit jobs—plan ahead before making big decisions. You may have to negotiate a flex schedule.
Look into caregiver tax credits and employer assistance programs.
📚 Refuel Reads: This Week’s Book Recommendation
📖 Women With Money – Jean Chatzky
💡 Why you need this book: Many unpaid caregivers are women who take financial hits due to caregiving. This book helps you rethink money, security, and planning for your own future.
📌 Takeaway Tip: Your future matters, too. Plan for your loved one’s care—but don’t sacrifice your own financial well-being.
➡️➡️➡️My advice is to make a plan for your family now⏳⏰🕰️⌚🕒…MadLove (episode dated 1/3/2025)
🛤️ Faith in Motion: A Simple Prayer
"Lord, help me to be wise in planning for the future. Please give me the strength to make financial decisions with clarity and the courage to have the hard conversations while leading with patience and love. Amen."
📌 Next Steps
📢 Share Refuel with a friend who needs this info. Please forward this email or send them this link: https://refuelbyfaithandgasoline.beehiiv.com/
🎥 Now Playing: A Faith + Gasoline YouTube video on “Estate Planning: You have to start now!”
Caregiving is a calling, but it’s also a financial commitment. Be prepared, and remember to Refuel.🚀💙
These are crazy times. You will need money. I’m not a financial advisor, but…this is something I know. Buy gold where I have bought gold since 2019: Acre 🏆💛✨
We have Refuel swag ☕😊 - yeah, I am deeply into a good cup of coffee.
If you enjoyed this newsletter, share it with someone you love. We are in this together. Community is the new currency 💙💙💙💙💙💙
Go be great. Love you 🚀💙
With faith & fuel,
Judith A. Culp
Founder, Faith + Gasoline