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It may not be the future you dreamed of, but for many millennials, it ends up happening that way: You’re thrust into the position of being your boomer parent’s caregiver. Maybe it’s not a full-time caregiver position, but even if not, caregiving to any degree can be draining – both on your energy and your finances.
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What are some ways that millennials can best budget their time and money when caring for boomer parents? Financial experts – including one who can relate to the matter on a deep personal level – weighed in on the question, providing seven crucial tips.
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Start a Compassionate Conversation Early and Plan Things Out
You may not get the chance to do this, but hopefully you do: Talk with your aging parents before they need your caregiving services.
“Don’t wait until an accident or emergency to approach the topic with your parents; instead, save time by planning,” said Mallon FitzPatrick, managing director, principal and head of wealth planning at Robertson Stephens. “Lead with compassion, and don’t blame your parents for not doing enough sooner. Planning for aging parents is a complex, overwhelming process, so tackle it in bits and pieces.”
Don’t take over the conversation, either. Give your parents room to talk things out and be sure they understand they still hold some autonomy and accountability.
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Talk Money With Your Parent(s)
Jenny Groberg, CEO of BookSmarts Accounting and Bookkeeping was, along with her siblings, a caregiver, for her mother’s during her final eight years. Groberg recommended that the first step those caring for aging parents do in order to effectively budget their own money and time is to talk finances with their folks. Where do your parents stand?
“Ensure they have health insurance, savings and know how to budget,” Groberg said. “Are they saving for retirement? Do they have an estate plan? Start with these basics.”
Additionally, FitzPatrick recommends asking your parent’s wealth manager or financial advisor for a comprehensive financial plan.
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Delegate Responsibilities
FitzPatrick was quick to note that this is easier said than done, but: If you have family or close friends who are willing to step up and help out with your aging boomer parent, bring them in.
Otherwise, you can bring in professional help. “This will free up time for you to focus on your own workload and help prevent burnout,” FitzPatrick said. “If you hire professional help, research local agencies and consider part-time options to balance costs. Become familiar with key individuals, such as your parents’ attorney, CPA, advisors, doctors and care management team. Knowing who these people are might prevent future elder fraud/abuse.”
Prioritize Your Own Financial Situation
It’s all too easy, particularly when in the role of caregiver, to put our own financial situation on the back burner and be consumed by what the people we’re caring for are going through. Don’t fall into this trap.
“Once you’ve addressed their needs, focus on your own financial situation,” Groberg said. “Many people can’t afford to set aside money for their parents while also paying a mortgage and saving for their children’s education. Most Americans face this reality. It’s also a reality that your parents are aging. Do what you can, even if it’s small to start saving for your role as caregiver.”
Need to Leave Work? Review Your Finances and Have a 3-6 Month Buffer
If you need to take time off work to care for your boomer parent(s), set yourself up for success by completing an unflinching review of your money situation.
“Start this process with a comprehensive review of their finances,” said Travis Forman, portfolio manager at Strategic Private Wealth Counsel — Harbourfront Wealth Management. “That includes preparing for any unexpected costs or the possibility of extending the leave. The appropriate buffer would be about three to six months of expenses.”
Remember, this financial buffer should be in addition to your emergency fund (at least three months’ worth of expenses) and retirement savings.
Check Community Resources
You may feel lonely in your role as a caregiver to your aging parent(s). But know that there may be some available support not too far from your doorstep. And they can help you budget your time and money.
“Local communities are often more resourceful than many of us think,” said Kristy Kim, CEO and founder at TomoCredit. “Look into the local community services that offer support for caregivers. Many non-profit organizations and community centers provide free or low-cost services like transportation, meal delivery and respite care.”
Utilize Technology and Products for Care Management
FitzPatrick recommended using an app or other tool to create a shared schedule so, if there are multiple caregivers, each knows who’s doing what and when.
“A calendar also helps set up a routine, which can ensure you budget enough ‘me time,’” FitzPatrick said. “Use apps to handle tasks like scheduling medical appointments, managing meds and tracking health data.
“Even a simple pill box labeled with the day of the week can help aging parents or their caregivers manage medications,” FitzPatrick said. “These tools save time and cut down on unnecessary trips, which means saving money and reducing stress.”
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This article originally appeared on GOBankingRates.com: 7 Ways Millennials Can Budget Time and Money When Caring for Boomer Parents
