One of the scariest parts of making money decisions is knowing that your actions impact not just yourself but also the family members for whom you are financially responsible. It is a pressure-filled and lonely position to be in, so we wanted to share resources and strategies that focus on the financial needs of caretakers and their families.
We discuss this in greater detail in our previous blog about managing your finances in a multigenerational household. Still, it is so important it’s worth repeating: build a budget or money plan that works for everyone.
Budgeting is an ongoing challenge. It is often more difficult when you are the only income-earner in your household or if your combined income is volatile or too low to meet your needs. With that in mind, there are still ways you can change your mindset and incorporate new habits.
You have enough on your plate as a caretaker for a child or dependent adult. That’s why it is critical you seek out additional support or resources in your community.
If you are responsible for a dependent (a child or other relative who relies on someone else for financial support), then you may be able to claim an exemption on your tax return.
By definition, a dependent has limited, if any, ability to contribute to the household financially. But there are many ways for dependents to work together with their families to make a meaningful, realistic contribution.
Ultimately, you cannot take care of someone else without first taking care of yourself. Nobody is perfect, and you can only do so much. While you can always try to improve, don’t be too hard on yourself. Practice self-care and give yourself credit for what you can do without berating yourself for what you cannot.
Money Management E-Newsletter: February 2022