Caregiving Is a Financial Event: Whether You Plan for It or Not

Caregiving is no longer a rare or short-term responsibility. Millions of Americans are balancing full-time careers while caring for children, aging parents, or other dependent family members. For many, this happens simultaneously—placing them squarely in the sandwich generation.

Yet caregiving is still rarely treated as a financial planning priority.

Most families assume caregiving will be temporary, manageable, or something they’ll “figure out as they go.” Unfortunately, that approach often leads to financial stress, missed opportunities, and difficult decisions made under pressure.

Recent research shows nearly half of caregivers experience negative financial impacts, from increased debt to reduced savings. Many also face work disruptions that directly affect income and long-term earning potential. Ignoring caregiving in a financial plan doesn’t make the risk go away—it magnifies it.

The Hidden Costs of Caregiving

Caregiving affects far more than monthly expenses. It can:

• Reduce earning capacity

• Delay or derail retirement savings

• Increase reliance on credit or emergency withdrawals

• Create long-term tax and estate complications

• Lead to physical and emotional burnout

Without planning, families often sacrifice their own financial future to meet immediate needs.

Start With the Right Conversations

Before any financial strategy is discussed, the caregiving reality needs to be clearly understood.

Key questions include:

• What type of care is required now—and what may be needed later?

• How much time and money is already being spent?

• Who has legal authority to make decisions?

• What outcomes are most important to protect?

• How much uncertainty can the household absorb?

These conversations bring structure to what often feels overwhelming.

Planning for Multiple Outcomes, Not Just One

Caregiving is unpredictable. The best plans don’t rely on a single assumption—they account for multiple scenarios.

That often means:

• Stress-testing cash flow and savings

• Creating liquidity for unexpected costs

• Adjusting retirement timelines if needed

• Coordinating insurance, tax, and estate strategies

• Planning for caregiver sustainability, not just care costs

Planning creates options—and options create confidence.

Modern Tools for Modern Caregiving

Income alone is rarely enough to absorb caregiving costs. Today’s financial planning landscape includes tools designed specifically to address health-related disruptions.

Some insurance strategies now provide access to funds while living, helping cover non-medical expenses when illness or caregiving responsibilities interfere with work. Others include access to support services that reduce stress and administrative burden.

Understanding these tools early allows families to evaluate trade-offs thoughtfully—rather than reacting during a crisis.

A More Sustainable Path Forward

Caregiving will touch nearly every family in some form. Treating it as a financial afterthought only increases stress when challenges arise.

By recognizing caregiving as a major life and financial event—and planning for it accordingly—families can preserve long-term stability while supporting the people who matter most.

The goal isn’t to eliminate uncertainty. It’s to face it with a plan.

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About Rigden Capital Strategies

Rigden Capital Strategies was founded on a simple belief: financial advice should be personal, transparent, and centered around your goals—not built on generic models or product-driven sales. With decades of combined industry experience, we’ve developed a process grounded in three core values: value, integrity, and progress.

As a fee-only fiduciary, we provide personalized, goals-based wealth planning services designed to adapt with your life. Our services include investment management, retirement and tax planning, and estate coordination. We use a mix of active and passive strategies to help clients navigate market changes with clarity and confidence.

We believe in building real relationships and delivering clear, actionable strategies—focused on long-term planning and aligned with your objectives.

Your goals, our strategies. Together, let’s make your goals happen.

Disclosure: This content is for informational and educational purposes only and should not be interpreted as financial, legal, or tax advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information provided. Investment decisions should be based on individual circumstances, and we recommend consulting a qualified professional before implementing any financial, legal, or tax strategies. Past performance is not indicative of future results, and all investments carry risks, including potential loss of principal. No investment strategy can guarantee success or protect against loss in all market conditions. Investors should carefully consider their risk tolerance, investment objectives, and financial circumstances before making investment decisions.