The economic impact of caregiving

The results from Homethrive’s Financial State of Family Caregivers Survey are in—and they paint a clear picture. While economic pressures are affecting workers across the board, caregivers are impacted especially hard.

When we talk about caregivers, we’re referring to anyone who provides support for a child, aging parent, or loved ones of any age with neurodivergence, disabilities, or chronic health conditions. Currently, 73% of adults in the U.S. are caregivers in some capacity.

Their challenges are real—and so are the implications for financial institutions and for the workplace. This presents a clear opportunity: by better supporting caregivers, credit unions can support financial wellbeing for their members and empower their employees to show up more focused, engaged, and effective at work.

The quantitative Financial State of Family Caregivers Survey, conducted by YouGov, gathered responses from more than 2,000 U.S. adults, nearly 500 employed individuals who also serve as unpaid family caregivers. You can download the full report here to find the survey data.

According to the Cost of Living Index, the average U.S. household spends $61,334 a year on expenses, yet governmental policy for caregiver support in the U.S. continues to fall short of other high-income countries.

However, the financial impact of caregiving goes beyond the average American’s spending habits, with studies finding that family caregivers spend an average of over $7,200 annually on caregiving expenses alone. On average, that equated to 26% of the caregiver’s income per year.

For those caring for more than one person’s health and well-being, finances must be stretched even further. This includes “sandwich generation” caregivers, individuals who are responsible for aging parents and dependent children.

It isn’t just the financial burden that impacts a caregiver’s ability to work. There are also financial, emotional, and logistical factors to consider.

Given the financial demands of caregiving—both direct and indirect—it’s no surprise that the majority of caregivers are concerned about issues like rising healthcare costs, more expensive cars, and increasingly unaffordable housing.

Examples of direct costs of caregiving can include:

Perhaps even more impactful, indirect costs may affect a caregiver’s overall paycheck or career trajectory. These sacrifices, consequently and inevitably, impact their credit union and employer as well as they choose to forgo any significant promotions or training opportunities that may demand more time commitment or travel.

In optimistic news, a study by Edward Jones found that 80% of the caregivers they surveyed confirmed that a caregiving role could be both rewarding and fulfilling.

However, the emotional toll that it takes often leads to both physical and mental exhaustion. Sometimes, conditions like Caregiver Stress Disorder or PTSD may also result from a caregiving situation. Research from AARP states that 60% of caregivers report clinical levels of stress, and 40% experience depression.

Caregiving duties, on average, can take 20 hours a week or more, leaving less time for self-care in every sense. As social activities, holidays, and free time dwindle, working caregivers are left with a continuous mental load to shoulder.

Signs of burnout in a caregiver include:

Workplaces, especially those lacking support or with cultures that do not prioritize mental health and well-being, can often exacerbate this condition. Managers who fail to encourage transparency and understanding, or those who model an unhealthy work-life balance themselves, result in caregivers feeling as though they must choose between caring for their loved one and succeeding at their job.

Much of the logistical work that goes into caregiving happens during the workday. Running errands while shops are open, transporting someone where they need to go, making insurance calls, scheduling future appointments, speaking with doctors, and checking in with at-home caregivers or childcare providers all occur during the day, which means flexibility becomes a necessity.

This presenteeism is also coupled with absenteeism, with more days used not only for caregiving duties, but to deal with the fallout of this high-stress position. For example, the physical repercussions of caregiving sometimes lead to damaging results.

Caregivers, stretched thin as it is, will oftentimes neglect their own health, due to exhaustion or simply not having time in the day to worry about themselves. This equates to more sick days and longer recovery times when issues are eventually addressed.

In light of these findings, credit unions have a clear opportunity to invest in stronger caregiving support—before the financial, logistical, and emotional strains of caregiving begin to impact their members and their employees.

From childcare to loss support, Homethrive covers the full spectrum of caregiving challenges faced by credit union members and employees. The all-in-one platform blends predictive technology with access to a live expert Care Team to deliver proactive, personalized support for every family.

Solutions like Homethrive are proven to reduce stress and confusion for caregivers by providing access to resources 24/7, plus direct assistance that includes answering healthcare questions, providing emotional support, scheduling appointments, and researching local services.

Learn more at www.homethrive.com.