Legal & Financial Planning for Family Caregivers

The Financial Impact on Family Caregivers in California

The financial toll of family caregiving is serious—and for many families in California, it can feel devastating. According to AARP California’s latest state-level caregiving data, roughly 23 percent of adults in the state—more than 7 million people—are family caregivers, providing largely unpaid care to loved ones with health needs.

Most caregivers in California shoulder significant out-of-pocket costs. About 80 percent of caregivers report spending their own money to meet their loved one’s needs, averaging around $7,200 per year—about 25 percent of their income. Nearly half of caregivers in the state report experiencing financial setbacks like taking on debt, draining savings, or struggling to afford basics such as food and medicine because of caregiving responsibilities.

These numbers reflect a broader reality: caregiving is often financially demanding. Many caregivers must reduce work hours, switch to part-time schedules, or leave the workforce entirely in order to provide care, jeopardizing long-term financial stability while daily costs—like medical supplies, transportation, home modifications, and household bills—continue to add up.

Each January, Financial Wellness Month encourages individuals and families to focus on their financial health—especially planning, budgeting, and seeking support where needed. For family caregivers, this month is an important opportunity to:

• Review your caregiving budget and identify where your money is going.
• Explore financial resources available at the state and local levels, including assistance programs, tax credits, and caregiver benefits.
• Connect with organizations, including your local Caregiver Resource Center, that specialize in caregiver financial support and planning.
• Start conversations with employers or family members about flexible work arrangements or shared caregiving costs.

Los Angeles Caregiver Resource Center hosted a 6-week series called “Hope is Not a Plan: Legal & Financial Planning for Family Caregivers”. In this series, experts and professionals who have worked in their field for many years discuss how legal and financial planning issues can affect caregiving families. Topics covered include:

• Uncovering the Myths about Medi-Cal
• Medi-Cal and In Home Supportive Services (IHSS)
• Scams Targeting Older Adults
• Estate Planning & Trust Administration
• Wills, Living Trusts, POA 101 (Legal Docs 101)
• Navigating Medicare Benefits and Coverage

View the full series here!

If you provide regular care to your loved one, we are here for you. As a caregiver, you’re faced with new challenges every day. The California Caregiver Resource Centers are a network of eleven independent 501(c)3 not-for-profit organizations across California. They were created with you both in mind and at heart to be a free resource as you navigate the challenging role you’re in. We would love to connect you with your local Center, where they can talk more about local programs for caregivers, answer your questions, and explain how they can best support you.