If you have an elderly loved one who is looking to transition to senior living or requires assistance with daily tasks, you may be wondering how to plan a monthly budget that will meet their needs. Of course, your target amount will depend on several factors, such as the level of care required and whether your aging parent prefers to age in place or make the move to a retirement community. In this article, we share with you some tips for helping your aging parent plan a monthly budget.
Expenses You Will Need to Cover
When planning a monthly budget that will meet all your loved one’s needs, the cost of care is not the only factor to consider. You will also need to account for the following aspects:
- Medical care
- The cost of upkeeping the home
- Transportation costs
- Entertainment expenses
- Insurance premiums
- … and more!
To calculate how much you should budget as a result, it’s important to answer some critical questions.
What to Consider When Budgeting
Ideally, budgeting for senior living should take place long before an actual need arises. It’s always best to be prepared for any eventuality, from a best-case scenario where an individual stays relatively healthy into old age to a worst-case scenario where they require a high level of care.
Ask yourself the following questions when planning out a budget:
- How long do you anticipate that you or your loved one will require senior care? For instance, is there a hereditary condition that runs in the family?
- What is the current health condition of your aging parent? Do they have any chronic conditions that are progressive and/or require careful management?
- How do you or your loved one wish to spend life in your golden years – aging in place or in a lively retirement community? Keep in mind that as much as you wish to stick to this goal, circumstances can change, or you may require respite care.
- Are there any financial sources or benefits you can tap into, such as VA benefits and long-term care insurance? Would you or your loved one consider selling or renting out your current home upon transitioning to residential senior living?
Depending on your answers to the above questions, you may find that the amount you require differs.
Organizing Your Budget
Once you have a goal in mind, it’s time to take actionable steps towards achieving it. Below are some tips you can follow:
- Speak to your doctor about your risk of developing certain health condition(s) and plan accordingly.
- Discuss the cost of care with family members, including siblings. If you intend to help your aging parent out, be it financially or in other aspects, everyone will need to be in agreement on their role.
- Incorporate the money you are setting aside for senior living into your monthly family expenses.
When you follow the tips above, you will find that budgeting for senior living need not be hard!