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The True Cost of Caregiving: Insights into Caregiver Spending Habits
Date Updated: April 7, 2025
Written by:
Sheri Atwood, a former Silicon Valley executive, knows firsthand how financial stress impacts work, health, and relationships. From her parents' bitter divorce to conflicts over financial responsibilities with family, an ex-spouse, and siblings, she saw how money disputes create distractions, drain productivity, and take a toll on well-being. She wished her employer had provided a solution—something to help her focus at work instead of constantly managing financial conflicts at home. That’s why she founded SupportPay, the first platform designed to help employees streamline shared financial responsibilities, reducing stress and improving workplace productivity.
Edited by:
Victoria Lurie is a copy editor, writer, and content manager. She started in legacy media, progressing from there to higher education, reviews, and health care news. During the course of her career, Victoria has corrected grammar on hundreds of domains (and the occasional subway wall). She has a BA in Writing from Christopher Newport University.
Victoria is passionate about making information accessible. She lets the math scare her so it doesn’t scare you. When it comes to caregiving, Victoria's experience is mostly product-centric: hoyer lifts, blood pressure cuffs, traction stickers. But she’s dabbled in estate planning and long-distance care, and hopes to use her experience to make that path smoother for others.
Caregiving is not just an emotional commitment — it’s a financial one. With tens of thousands of caregivers using SupportPay’s platform, we have a unique view into the real costs associated with caregiving.
From essential household expenses to medical costs and even financial sacrifices, the data reveals just how much caregivers are spending and how they are managing their financial responsibilities. In this article, we’ll explore the key trends behind caregiving expenses, providing a clearer picture of the financial burdens caregivers face and how they navigate them.
The Financial Burden of Caregiving
Significant out-of-pocket expenses
Caregiving comes with a hefty price tag. According to AARP, on average, family caregivers spend $7,242 annually on caregiving-related expenses, amounting to 26% of their income. This financial strain forces tough decisions, with 22% of caregivers depleting their short-term savings and 12% exhausting their long-term savings. The financial commitment of caregiving often extends beyond what many initially expect, placing added stress on families.
How caregivers are managing shared expenses
Most caregivers are not handling these costs alone. SupportPay’s platform data shows that 80% of the time, caregiving-related expenses are split between multiple individuals, typically among two to four family members. While there is no single average bill amount, this data suggests that families are working together to ease the financial load where possible.
SupportPay makes this process seamless by allowing each user to split, track, and share expenses in a single platform. The app enables each family member to maintain their own financial identity while collaborating on expenses. However, SupportPay goes further by automating tracking, providing certified records, and allowing direct payments to service providers—eliminating the need for manual reconciliation and reducing financial disputes.
Caregiving-Related Spending Habits
Where the money goes
Top caregiving-related spending categories provide insight into caregiver priorities. The spending categories also highlight where caregivers could use the most assistance.
The most significant caregiving spending categories include:
- child support
- education
- clothing
- groceries
- health care
The breadth of these categories highlights the broad variety of financial responsibilities caregivers manage. In terms of transaction frequency, child support, education, and health care remain the most common spending categories, underscoring the ongoing and essential nature of these costs.
How often caregivers engage with their finances:
Caregivers are highly engaged with their finances, using the SupportPay platform 2-4 times per week to track and manage expenses. This frequency demonstrates the need for ongoing oversight and careful financial planning in caregiving. Additionally, the average caregiver manages expenses for four family members, reinforcing the imbalance of caregiving responsibilities.
The financial toll of caregiving is undeniable. With hundreds of thousands of caregivers using SupportPay, the data tells a clear story: Caregivers shoulder significant financial burdens, splitting costs amongst family members to alleviate pressure, and having to not only stay on top of their own finances, but of their care recipients as well.
With annual caregiving costs surpassing $7,000 for many, it’s evident that financial planning and support systems are crucial. As caregiving needs continue to grow, understanding these financial trends can help caregivers, policymakers, and organizations develop better strategies to support those providing care for loved ones.
Sources
- AARP research shows family caregivers face significant financial strain. (n.d.). AARP
- Caregiving in the U.S. (2020). AARP | National Alliance for Caregiving