Family Caregivers Spend Almost One-third Of Annual Household Costs Caring For Loved Ones 

Family caregivers are spending an average of $11,508 a year on caregiving out of pocket, representing 31% of their annual household costs.

That’s according to a study from AARP, which examined expenses among U.S. adults age 18 and older who care for an adult relative or friend.

Some of those costs include senior housing, including independent living, assisted living and skilled nursing. Families spend an average of $4,797 on household and housing annually, including food and nutrition, rent and mortgage payments, according to the report. Household costs make up around 42% of all of their expenses.

Families spend 29% of their annual household costs on medical expenses and 37% of their annual budgets on medical expenses including copayments, insurance premiums and direct payments. Family caregivers reported spending 19% of their annual household budgets on nursing homes and 11% on prescription drugs and medical equipment, supplies and medications.

Household expenses disproportionately impact low-income families, according to AARP. Families making $40,000 or less annually spend more than three-quarters of their budget on care expenses. In contrast, families with household budgets of at least $150,000 spend around 19% on care expenses annually. Huseholds making between $40,000 and $84,999 spend 17% of income on care and incomes between $85,000 to $149,999 spend 9%.

Costs vary when adding in caregivers with adult children into the mix, with an average of $17,775 spent annually and half of household income dedicated to caregiving. When caregivers and care recipients live together, caregivers devote 36% of household income to care, compared with 26% among those living separately, according to the report.

This all comes at a time when affordability is top of mind for senior living providers. According to NIC MAP data, the monthly cost of senior living across the continuum is $4,335 for independent living, $6,787 for assisted living and $8,612 for memory care, as of the final quarter of 2025.

“The findings point to the need for financial relief that addresses essential household and medical expenses and reflects the added costs of dementia and intensive care,” the report’s authors wrote. “Policy options including caregiver tax credits, access to affordable home care and respite, paid job-protected family leave and opportunities to compensate eligible relatives who provide care.”

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