Market coverage note: This article draws on sources from both Korea and the United States. Each piece of information is labeled 🇰🇷 Korea or 🇺🇸 U.S. in the text to indicate which country it applies to.
When caregiving for a parent begins, the first thing to shake is your sense of the household finances. What starts as a few tens of thousands of won for medication and a handful of taxi fares can swell, almost without notice, into several million won every month. Even so, many caregivers resist looking at the specific numbers. The thought that "this is money we have to spend anyway" keeps pushing the financial review off, while the bank account quietly shrinks.
🇰🇷 Korea A Bank of Korea BOK Issue Note (March 2024) found that the staffing shortage in care services is leading to "a level of cost burden that ordinary households can barely manage," and warned that the problem will deepen further, centered on elderly care, as the population ages. According to data from the Ministry of Health and Welfare and the Central Dementia Center (2024), the annual care cost per dementia patient is approximately 26,390,000 won, an increase of 18.9% compared to the previous year. For nursing home use, the total monthly benefit cost for a Grade 1 beneficiary as of 2025 is approximately 2,713,500 won; applying the 20% co-payment rate, the amount the beneficiary pays out of pocket comes to 542,700 won per month. When non-covered costs such as food ingredients and premium room charges are added, the actual burden on the family is higher still.
🇺🇸 U.S. The "Caregiving in the US 2025" report published by AARP and the National Alliance for Caregiving found that the number of family caregivers in the United States has reached 63 million, an increase of approximately 50% compared to 2015. One in 5 caregivers experiences serious financial strain due to caregiving, and 1 in 4 has gone into debt. According to an AARP survey (March 2025), the average annual out-of-pocket caregiving cost for a family caregiver in the United States is approximately $7,200 (roughly 10,000,000 won), which represents about 26% of income. For caregivers managing care from a long distance, the annual cost can rise as high as $8,728.
Financial stress is frightening not simply because money runs out. 🇺🇸 U.S. A study published in 2025 (PMC) found a clear tendency among family caregivers experiencing financial strain to put off their own health care. It becomes a vicious cycle: caregivers cut back on their own medical expenses because of caregiving costs, and their health deteriorates as a result. When worries about money and worries about health grow at the same time, the physical and emotional reserves that keep a caregiver going are depleted rapidly.
So what realistic options are available? 🇰🇷 Korea Beneficiaries of the 노인장기요양보험 (National Long-Term Care Insurance) may be eligible for a co-payment reduction based on their income and assets. For home-visit benefits, the standard co-payment rate is 15%; those eligible for a 40% reduction pay 9%; those eligible for a 60% reduction pay 6%; and basic livelihood recipients pay 0%. For facility benefits (nursing homes), the rates are 20%, 12%, 8%, and 0% respectively. Eligibility for a reduction is determined based on health insurance premiums, so it is important to check your parent's premium level and household income in advance. 🇺🇸 U.S. In the United States, a federal caregiver-specific tax credit has not yet been enacted into law. The Credit for Caring Act is pending in Congress and would provide a tax credit of up to $5,000 per year, but as of 2026 it is not yet in effect. In the meantime, a practical starting point is to make full use of existing provisions that may apply if your parent is registered as a dependent: the Credit for Other Dependents (up to $500), the Child and Dependent Care Credit, and the medical expense deduction. Some states — including Oklahoma and Nevada — already have their own state-level caregiver tax credits in place, so be sure to check what your state offers separately.
The best way to manage caregiving costs is not avoidance but documentation. When you record every expense that was actually paid each month, it becomes visible where spending might be reduced and which programs you have not yet used. If no one in the family is in a position to take on this role, reaching out to a local social worker or care manager for help is a valid option. Not trying to shoulder financial issues alone — that is the first step toward sustainable caregiving.
Sources: Bank of Korea BOK Issue Note No. 2024-6, "Measures to Ease the Staffing Shortage and Cost Burden in Care Services" (March 2024); Ministry of Health and Welfare and Central Dementia Center, "2023 Dementia Epidemiological and Status Survey" (2024); Ministry of Health and Welfare press release, "2025 Long-Term Care Insurance Premium Rate Frozen" (October 2024); Senior Talk Talk, "Monthly Cost of a Nursing Home Based on 2024 Standards" (citing Ministry of Health and Welfare and National Health Insurance Service statistics); AARP & National Alliance for Caregiving, "Caregiving in the US 2025"; AARP press release, "New State-by-State Data Expose the Crushing Financial Strain of Family Caregiving" (October 2025); Caregiver Action Network statistics page (2025); U.S. HHS ASPE Issue Brief, "Review of Federal and State Caregiver Tax Credit Laws and Bills" (September 2025); American Caregiver Association, "Caregiver Tax Credit 2026."
Note: This article was compiled by AI from the sources cited above. We strive for accuracy, but for decisions about your specific situation, please confirm the latest guidance from a professional or the relevant agency.