While it’s impossible to fully plan how much it will cost to care for an aging loved one, you want to try at least to be in the correct ballpark as you plan for your caregiving costs. A loved one could turn out to have a seemingly endless array of health challenges — or be a super-ager, a term for someone over 80 who generally is as mentally or physically fit as their younger counterparts.
An AARP study that came out in 2021 (its most recent study on the topic) suggested that Americans spend, on average, $7,200 a year on caregiving for an elderly relative. Adjusted for inflation, that’s now a little over $8,800.
Here are some common misconceptions surrounding the costs of caregiving, as well as the realities to expect.
Myth: Many people age in place with no caregiving costs.
Your aging relative may never move to an assisted living facility, but unfortunately, there’s a good chance that other care-related costs will still increase over time.
“Costs can escalate quickly, especially if a loved one’s condition worsens unexpectedly,” says Emma Dickison, CEO and president of Home Helpers Home Care, a Cincinnati, Ohio-based nationwide franchise offering home health care services. “Families may start with just a few hours of weekly support, but complications can rapidly require full-day care.”
Dickison says that even without a home health care aide, over the years, as your older relatives age, you could find yourself spending money on the following:
— Home modifications like grab bars, ramps or stairlifts
— Medical equipment, such as hospital beds or walkers
— Transportation to appointments
— Incontinence products
— Emergency respite care for a family caregiver
Dickison says that you shouldn’t forget that as those caregiving costs go up, your own income may take a hit.
“One of the most overlooked expenses is the impact on family caregivers themselves,” she says. “Many reduce their work hours or leave their jobs entirely, resulting in lost income and retirement savings. These hidden costs can be financially and emotionally draining over time.”
There also may be costs that come way out of left field, says Joy Loverde, a Chicago-based author of “The Complete Eldercare Planner, 4th Edition” and “Who Will Take Care of Me When I’m Old?”
She offers the example of an aging parent who can no longer pay for or take care of a pet.
“If pet insurance is not in place, adult children may incur temporary boarding fees or, worse, expensive vet bills, medications or even surgical expenses,” she says.
True, you might end up taking in a pet and be happy to have some furry companionship, but the point is that if a parent or older relative starts to have financial problems, they could quickly become your own financial problems. And if you plan for it, at least you won’t be completely surprised when hidden costs from caregiving crop up.
Myth: In-home care is covered by insurance.
For assistance at home or nurse visits, it’s easy to assume health insurance or Medicare will pay for the costs. In some cases, such as home infusions or blood pressure checks, you might find that insurance provides coverage. However, in most instances, you’ll need to find other ways to pay for daily help at home.
“One of the most damaging misconceptions about long-term and in-home care is that Medicare and private insurance will cover the costs,” says Jon Levinson, founder and CEO of Clara Home Care, a website that helps people find home health care aides.
“Medicare and most private health plans do not cover daily living support like bathing, dressing or meal preparation, whether at home or in a facility,” Levinson says. “Unless you have a long-term care policy or a hybrid life insurance plan with care benefits, these costs will likely come out of your own pocket.”
Myth: It’s easy to calculate how much in-home care will cost.
The exact cost of in-home assistance can vary greatly. It can also vary based on your family situation. If some relatives help during the weekend or on certain days, you might only pay for a few hours of help during the week. But if somebody needs a lot of help, and there aren’t a lot of family members, such as siblings, able to pitch in, your costs could escalate.
“People often assume that in-home care is always cheaper than facility care,” Dickison says.
As a general rule, that’s true. But you may want top-notch home care that turns out to be more expensive than an inexpensive nursing home, or you may find that home care is cheaper than a nursing home, but it still puts you in the proverbial poor house.
According to CareScout’s 2025 Cost of Care Survey, a nonmedical caregiver costs $35 per hour on average, or $6,066 monthly (at 40 hours per week). A private-duty nurse averages $95 per hour, or more than $15,000 per month. Conversely, a semi-private room in a nursing home costs $9,581 per month, and a private room in a nursing home averages $10,798 monthly.
“While home care can be flexible and cost-effective, depending on the needs, it still represents a significant financial commitment,” Dickison says.
Levinson echoes those sentiments: “Most people drastically underestimate how much care will cost.”
Myth: The highest cost of caregiving is financial.
If you are spending hours every week caring for a loved one, you may face struggles in other areas of your life as you burn out.
After all, you might find you have less time for your spouse, kids or other family members. You may also be sleeping less, especially if you’re getting up in the middle of the night to care for a parent or relative. You may miss your own medical appointments since you’re taking your loved one to so many. You may exercise less. What you’re doing is noble, but it can be damaging to your well-being.
If you’re caring for an elderly parent all of the time, you may feel like you’re in a nursing home as well; it’s just that you’re one of the workers.
Myth: You definitely can’t afford a caregiver.
You may be right, but there is no need to create a self-fulfilling prophecy. It’s easy to read about the high cost of caregiving and decide, “Nope, can’t do it.”
But even if you can’t afford a live-in caregiver, you may find that you can afford one to come in for several hours a week to help out with various tasks.
Myth: You will only need to be a caregiver for one person at a time.
“Most committed couples expect to journey through life at the same rate as their partners and typically don’t make plans for the day their needs begin to diverge,” Loverde says.
The same thing could happen with your parents or in-laws. You may not be imagining that you could be a caregiver twice over the years or simultaneously, but either scenario could happen.
“One parent might suffer a debilitating fall or medical crisis while the other remains comparatively healthy,” Loverde says. “Caregivers are rarely prepared for parents to live separately when illness strikes, and one parent enters into assisted living or a nursing home.”
In other words, you could find yourself in a variety of situations, such as trying to keep your own life humming along while having a parent in a nursing home and another parent at their own home, with a home health aide checking in on them.
Myth: A conversation about finances can wait until care is needed.
Even if your loved one is currently in good health and living at home, setting up an aging plan is still a good idea. That way, if a crisis such as a fall or an unexpected hospital visit happens, everyone is prepared.
“The most important step is to start planning early, before a crisis occurs,” Dickison says. “Have open, ongoing conversations with aging loved ones about their wishes, values and care preferences.”
She says you’ll want to discuss what your parents have in savings, the equity in their home, long-term care insurance and eligibility for any other benefits, among other things.
Dickison also recommends consulting a financial advisor with eldercare experience and an elder law attorney.
“These professionals can help with legal tools like powers of attorney or Medicaid planning,” she says.
If talking about this with a loved one is challenging, Dickison has a suggestion.
“You might ask for guidance for your own retirement,” she says.
With any luck, maybe your loved one will start talking about what they’ve been planning for their elder years, and that may be an organic, natural way to get into an in-depth conversation.
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7 Myths About Caregiving and Home Care Costs originally appeared on usnews.com
Update 04/01/26: This story was previously published at an earlier date and has been updated with new information.
