Handling Money as a Caregiver

Handling money, – even when it’s your own, – can be a touchy subject. There may be lots of differing opinions on how to spend or save, and who should have control over those decisions. When you are placed in the position of being a caregiver for someone else, handling their money can become a sticky situation. It may cause resentment, tension, and suspicion. The bottom line is that once a person’s functioning is at a level of needing caregiving assistance, it will be essential to discuss finances and money management decisions.

Some families elect to divide up responsibilities, with one person handling the finances and the other taking care of the daily caregiving routines. Other situations require hiring caregivers to assist. In some cases, it may be necessary to apply for a conservatorship, which is a legally appointed determination on who is allowed to handle the finances for someone else’s care.

Many older adults are reluctant to let others, even their adult children, know about their financial situation. They may be fearful of being taken advantage of, or of others mishandling their resources.

As a family caregiver, you may find yourself helping your loved one with money matters like shopping, bill paying, or checkbook oversight. It’s important to handle these tasks with care, transparency, and accountability to protect both your loved one and yourself. Here are some suggestions:

• If you need to write checks on your loved one’s behalf, never make them out to “cash” or in your own name. Keep payments directly to businesses, utilities, or service providers.

• When using your loved one’s money for shopping, review the amount together before you leave, keep receipts, and return any change promptly. Consider keeping a simple notebook or folder to track purchases.

• Avoid using your loved one’s ATM card or PIN. Instead, work with the bank to set up systems that allow you to assist safely, such as joint signatures, online bill pay, or power of attorney when appropriate.

• Never use your loved one’s credit card for personal needs. If you are assisting with their card, keep all receipts and account statements accessible for review.

• Think carefully before becoming a co-owner of a bank account. In many cases, setting up power of attorney or being added as an authorized signer is a safer option.

• Keep personal finances and your loved one’s finances separate. Do not borrow money or blend funds, even temporarily.

• If your loved one needs more help than you can reasonably provide, reach out for support. Local agencies, trusted professionals, or financial advisors can guide you in creating safe systems for money management.

Whether you’ve hired a caregiver who is helping with purchases, or you are the caregiver handling money, it is best to clearly document the following:

• Who handled the funds, and why you could not handle the funds yourself
• Where the funds came from
• When and where they shopped
• What was purchased, including itemized receipts
• How much change was left over and where it was placed.

Consider taking pictures of the receipts for your record. Taking these steps with each transaction will help avoid undue suspicion, and alleviate concerns of mishandling of funds.