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Families sacrifice time and money caring for loved ones. A new caregiver calculator reveals the high cost.
Across the U.S., family members caring for loved ones provide an estimated $600 billion in unpaid services each year, sacrificing time, money and often their well-being to care for aging loved ones, according to an AARP survey.
As Congress considers a bill that would provide family caregivers a tax credit, quantifying how much that time is worth is proving to be difficult.
Amy Goyer understands the challenge. Caring for her aging parents meant turning her life upside down. Her mother had a stroke in her late 60s and her father was diagnosed with Alzheimer’s disease.
Family caregivers face a financial toll
Pictures line the walls of Goyer’s home in Chandler, Arizona. They’re filled with memories of a lifetime that became a source of stress and financial strain. As a caregiver for her parents, she had to pay for renovations to safety-proof her home. She also lost money and time when she could have been working more to care for her parents.
“It was financially devastating for me,” Goyer said. “I don’t have regrets about anything I did in caring for my family, but I ended up in bankruptcy after my dad passed away.”
Goyer, also a caregiving expert for AARP with more than 35 years of experience, was not immune to the financial strain of caring for her parents.
“How are you supposed to take care of yourself, your family and your home when you’re working two jobs — one paid and one unpaid for your loved ones?” she asked.
The burden Goyer faced is becoming more common across America. According to a Harvard Business School report, 73% of American workers surveyed provide some type of caregiving at home.
Calculating the cost
Shon Lowe has been caring for her mother, Terrie Montgomery, since her Alzheimer’s diagnosis a decade ago.
The financial toll on families can be high. AARP calculated family caregivers spend an average $7,242 of their own money each year, according to a 2021 survey. That doesn’t include the time they spend taking care of things, such as managing medication, finances and food prep.
Salary.com and Otsuka Pharmaceuticals, maker of medications for neurological disorders like dementia, said they created a new tool, which offers a clearer picture of the financial cost of caregiving. The cost is often hidden but felt deeply by families everywhere.
Lowe tried the Family Caregiver Calculator, which calculates the financial value of caregiving based on geography, time spent, and the type of work done for family caregivers. When she entered the hours she and her siblings spend caring for their mother, the result was $270,103 per year.
“It’s unbelievable,” Lowe said. “Something should be done about that.”
Financial help is available for families
The creators of the Family Caregiver Calculator hope to urge policymakers to pass legislation, which supports unpaid family caregivers and help families budget for caregiving expenses.
“We largely don’t have enough support,” said Amy Goyer.
She added that without more resources, the financial burden will only grow for future generations.
“We’re putting our caregivers’ financial security in jeopardy,” she said. “They’re not going to have the money to pay for someone to care for them.”
While some states have programs that allow family caregivers to receive compensation, Goyer explained these opportunities are limited.
A recent report to Congress by the Recognize, Assist, Include, Support and Engage (RAISE) Family Caregiving Council proposed several potential solutions to ease this burden, including a federal tax credit for family caregivers, immigration reform to expand the caregiver workforce, and expanding grant programs for states.
These solutions offer hope to families struggling under the burden of caregiving but require congressional action. If passed, the Credit for Caring Act, introduced in Congress this year, would provide a federal tax credit of up to $5,000 to qualifying caregivers.
AARP is advocating for the passage of this bill, stressing it would bring much-needed relief to caregivers who are often financially stretched while caring for their loved ones.
Without financial help, Goyer said families end up passing down debt from one generation to the next.
“What we’re doing is we’re putting the financial security of our caregivers in jeopardy in the future,” Goyer said. “So they’re not going to have the money to pay for somebody to take care of them.”
contributed to this report.
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FBI warning about scams surrounding hurricane relief
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FEMA crews forced to relocate amid reported threats from armed militia over hurricane relief efforts
As the nearly 65,000 residents of hard-hit Rutherford County, North Carolina, struggle to clear endless mud and debris left behind by Hurricane Helene, help has hit a roadblock.
Federal Emergency Management Agency crews in North Carolina were forced to relocate due to a reported armed threat against workers, first reported by The Washington Post. Out of an abundance of caution, FEMA said its disaster assistance teams will be stationed at fixed locations instead of going door-to-door, which has been the agency’s common practice in the past.
FEMA said search and rescue efforts are still underway and disaster recovery centers remain open.
The move comes after an email sent by the U.S. Forest Service to federal responders in Rutherford County, alerted them of an apparent standdown after National Guard troops reportedly encountered armed militia saying they were “hunting FEMA.”
Helene made landfall on Sept. 26 as a powerful Category 4 storm near Perry, Florida. It tore through six states, leaving more than 225 people dead, most in North Carolina.
“FEMA continues to support communities impacted by Helene and help survivors apply for assistance. For the safety of our dedicated staff and the disaster survivors we are helping, FEMA has made some operational adjustments. Disaster Recovery Centers will continue to be open as scheduled, survivors continue to register for assistance, and we continue to help the people of North Carolina with their recovery,” FEMA said in a statement to CBS News.
The North Carolina National Guard sent CBS News the following statement, saying, “The NCNG has no reports of our soldiers or airmen encountering any armed militia, any threats and any type of combatants. We are continuing to serve all those counties in need of our assistance.”
False claims have surfaced online including that the federal government planned to halt search and rescue efforts in order to seize and bulldoze Chimney Roc and that victims were only receiving $750 in aid. Many of the conspiracy theories have prompted FEMA to create a page on its site discrediting rumors and false information about its response to Hurricane Helene.
Former President Donald Trump has repeatedly spread misinformation, suggesting FEMA money for hurricane victims was diverted and given to migrants. Although FEMA does sometimes provide aid to immigrants, the source of funding is separate from disaster relief.
“We have individuals in need of assistance who are entitled to assistance who aren’t seeking it because of the false information,” Homeland Secretary Alejandro Mayorkas said on “Face the Nation with Margaret Brennan” on Sunday.
Last week, President Biden addressed false claims, including one that said the government can control the weather, promoted by some Republican politicians.
“Marjorie Taylor Greene, the congresswoman from Georgia, is now saying the federal government is literally controlling the weather, we’re controlling the weather. It’s beyond ridiculous. It’s so stupid, it’s got to stop,” Mr. Biden said in his remarks from the White House.
Over the weekend, Mr. Biden visited Florida for a second time in just over the week to tour the storm damage after Hurricane Milton slammed the Gulf Coast of the Sunshine State as a Category 3 storm. On Sunday, the president announced $600 million in aid for areas impacted by Helene and Milton.
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