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Travel costs are down a little bit versus last year, data shows.
There are tested ways to save money on your next trip, such as traveling outside of peak season, booking early, going midweek and looking outside the hot spots, experts said.

Travelcouples | Moment | Getty Images

Jan. 30 is National Plan for Vacation Day — and travelers mapping out their next excursion have a few reliable money-saving hacks at their disposal.
Total travel costs — including airfare, hotels, rental cars, dining out and entertainment — are down an average 2% in the past year, according to the NerdWallet Travel Price Index. Jetsetters can expect travel this year to be a bit cheaper relative to 2023, especially for domestic trips, experts said.

Here are some top ways to stretch your budget.

1. Avoid peak season

Traveling during a destination’s shoulder or off season — and avoiding its busiest periods — is a surefire way to save big bucks, experts said.
“Shifting away from the peak, peak months, even weeks, is key,” said Hayley Berg, lead economist at Hopper, a travel app.
Peak and off seasons fluctuate based on location. June through August are generally among the busiest months for domestic and overseas trips — and that often means higher prices.

For example, on average, travelers can save 32%, or $112, on round-trip domestic airfare by going during September and October instead of peak summer months, according to Hopper data. Savings on hotel rates are harder to predict but would generally also be “considerable,” likely about 30% on average, Berg said.

Traveling during the shoulder and off seasons may have additional benefits such as thinner crowds and weather sometimes being as good or better.
Of course, some sites, attractions or restaurants may be closed, especially during off months, experts said. In addition, not everyone has the luxury of flexibility. Parents may be beholden to school schedules, for example. Even then, traveling in August instead of June or July is generally cheaper, Berg said.

2. Travel midweek — for most destinations

For most locales, airfare and lodging are significantly cheaper midweek relative to the weekend, meaning flexible travelers can score big savings.
“The easy rule: The dates that are probably the most convenient are probably the most expensive,” Berg said.
Sunday is generally the most expensive day to fly, data shows.
Domestic airfare is, on average, 24% lower by flying on a Tuesday, translating to savings of about $85 a ticket, according to NerdWallet.
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Domestic and international flights that leave on a Monday, Tuesday or Wednesday have historically been 12% cheaper than weekend departures, according to Google Flights data.
The midweek rule of thumb generally applies regardless of destination, Berg said. The one exception: Oceania, where the cheapest day to fly is Sunday, according to Hopper data.
Travelers can use online tools such as Google Flights, which displays a calendar of prices for comparison by day, said Sally French, travel expert at NerdWallet.
Travelers will also pay a 20% to 23% premium, on average, for nightly hotel rates on a Friday or Saturday, Hopper found. Those weekend premiums can be especially high in top domestic and overseas areas. In Las Vegas, average nightly rates nearly double.

3. Book early

The Covid-19 pandemic led Americans to defer trip purchases to the last minute, and that behavior has persisted. However, waiting too long to book, airfare especially, can be costly.
“The reality is, you need to book your flights in advance,” French said.
Experts recommend booking flights about one to three months ahead for U.S. trips, and even further ahead, maybe three to six months or more, for international trips.
Ideal booking times depend on your specific route, “so planning and booking early is usually a good idea,” according to the Google Flights analysis.
Hotels are a bit trickier. In big cities with many options, the best prices will be just 48 hours ahead of check-in, Hopper found. However, best prices are typically one to two months out for popular destinations such as Miami or Cancun, and rooms in popular vacation cities can book up early.

4. Try a ‘dupe’

Cartagena, Colombia.
Luca Montes | Moment | Getty Images

Data shows many travelers sought out cheaper duplicates, or “dupes,” of pricey destinations in 2023.
Applied broadly, tourists should look beyond the tourist hot spots and consider less-popular areas to save money, experts said.
“This is huge, especially for travelers who are looking to stretch their budget a little further,” Berg said.
For example, Europe is consistently the top destination for Americans traveling abroad. Round-trip airfare can easily cost more than $1,000 to many top European locales. Flying to certain cities can be much cheaper, though. For example, a flight to Lisbon or Porto in Portugal averages about $650 to $700, Hopper said.
Similarly, flying to Athens instead of Santorini can save almost $400 on a round-trip ticket, while going to Naples instead of Palermo in Italy would save about $125, according to Hopper.
Likewise, those eyeing a trip to South America would spend $375 for an average round-trip ticket to Cartagena, Colombia, compared to about $900 to Buenos Aires, Argentina, it found. Those going to Australia pay an average $1,214 to Sydney, but almost $1,500 to Melbourne.Don’t miss these stories from CNBC PRO: More

Workers are not feeling the same strength as labor data shows.
“A big reason for the disconnect is the unevenness in how different cities and states have recovered,” said Alí R. Bustamante, labor economist and deputy director of the Worker Power and Economic Security program at the Roosevelt Institute. 

Hiraman | E+ | Getty Images

It wasn’t so long ago that workers had the power to “quiet quit” or join the great resignation. That is no longer quite so easy.
Some laid-off employees report they are having a hard time in their job search or making it through hiring processes. In fact, 55% of job seekers have been searching for new roles for so long that they feel completely burnt out, according to a survey from Insight Global, a national staffing company. The survey was conducted in July among 501 unemployed adults actively looking for employment.

Workers are feeling the brunt of a labor market that — on paper and to economists’ understanding — is in fact strong. In part, that’s because the broader data doesn’t reflect local trends that come into play.
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“A big reason for the disconnect is the unevenness in how different cities and states have recovered,” said labor economist Alí R. Bustamante, deputy director of the Worker Power and Economic Security program at the Roosevelt Institute, a New York-based think tank. 
On average, the country as a whole is showing resilience, but some areas continue to have elevated levels of unemployment on top of an increased cost of living, Bustamante said.

Companies aren’t ‘adding staff in great numbers’

The number of job openings in December was nine million, a slight increase from November, yet a decline from a series-high of 12 million in March 2022, the U.S. Bureau of Labor Statistics reported in its monthly Job Openings and Labor Turnover Survey. 

On top of that, both layoffs and hires are at low levels, meaning companies may not be recruiting new workers like once before, said Julia Pollak, senior economist at ZipRecruiter.
Layoffs and discharges changed little at 1.6 million, remaining at a rate of 1% for the fourth consecutive month. Meanwhile, hires in December slightly grew to 3.6%, which is still well below the 3.9% average of 2019, Pollak said.

In November, the hires rate fell to 3.5%, the lowest rate since 2014 outside of the Covid-19 pandemic recession. For all of 2023, the hires rate averaged 3.8%, making it only the 11th best year out of 23, she said. 
“Companies are not growing, expanding or adding staff in great numbers,” said Pollak. “It’s tricky if you’re a new graduate, for example — not the easiest time to kick-start a career.” 

‘You would expect job growth would slow’

“As we continue on this road, you would expect job growth would slow because you’re getting closer and closer to full employment,” said Elise Gould, a senior economist at the Economic Policy Institute, a nonpartisan think tank. “The reserves of workers are getting smaller because more people have jobs.”
There were more job openings a few years ago because of the high turnover. Employers were constantly hiring because employees were frequently quitting and getting hired elsewhere, Gould said.
“There was just a lot more churn and that certainly slowed down pretty dramatically,” she said.

Some states still have elevated unemployment

There are two reasons why the worker sentiment is disconnected from the broader job market data: geography and the “economic trifecta,” Bustamante said.
Some states still have elevated unemployment rates that exceed the national average and are even higher than they were pre-pandemic.
“The reason why this is happening is because states are very different from each other. When you delve in deeper in some areas, you see a lot of variation [in] how communities are recovering … the economic sentiment figures reflect that,” Bustamante said.
From October to November, job opening rates decreased in four states, increased in two and were little changed in 44 states and the District of Columbia. Hire rates decreased in Montana (1%), Arizona and Oregon (0.7% each) and California and Connecticut (0.6% each), according to the Bureau of Labor Statistics.

Second, the economy recently hit a “trifecta” across the board of economic conditions that are really strong: the Federal Reserve paused interest rate hikes last July, inflation peaked in September 2022 and wage growth reached record highs in 2023.
While these are recent improvements in the economy at large, they aren’t yet reflected in worker sentiment. Wage growth didn’t strengthen consumers’ buying power because of inflation. The Fed’s pause on interest rate hikes will take time to materialize in borrowing costs.
“When you look at the positive news across the board of no more interest rate hikes, inflation is under control and wage growth is still happening … that kind of trifecta has only been around for a handful of months,” Bustamante said.
It will be a matter of time to see the sustained effects of the economic condition in consumer sentiment, Bustamante said.
In terms of national labor data, there is a risk of over-cooling, said ZipRecruiter’s Pollak. Key indicators such as quits and hires have deteriorated further from 2019 levels. These measures will continue to decline if rates hold steady, she said.Don’t miss these stories from CNBC PRO: More

Smart Tax Planning

Congress is still negotiating a $78 billion tax package with retroactive changes, including a boost for the child tax credit.
If enacted, the child tax credit changes could affect 2023 filings this season, but taxpayers shouldn’t wait to file returns, IRS Commissioner Danny Werfel said.
By law, filers claiming the child tax credit or earned income tax credit won’t receive refunds until Feb. 27 at the earliest, according to the IRS.

IRS Commissioner Danny Werfel testifies during the Senate Finance Committee hearing on the fiscal 2024 IRS budget and the IRS’ 2023 filing season, in the Dirksen Building in Washington, D.C., on April 19, 2023.
Tom Williams | CQ-Roll Call, Inc. | Getty Images

As the tax season kicks off, Congress is still negotiating a $78 billion tax package with retroactive changes, including a boost for the child tax credit.
If enacted, the child tax credit changes could affect 2023 filings this season. But taxpayers shouldn’t wait to file, according to the IRS.

“We urge and encourage taxpayers to file when they’re ready,” IRS Commissioner Danny Werfel told reporters Friday during a press call. “Don’t wait on Congress.”

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

If enacted, the child tax credit changes could expand access, increase the refundable portion of the tax break and add future inflation adjustments.
Eligible families stand to receive an average tax cut of $680 for 2023, according to estimates from the Urban-Brookings Tax Policy Center.
But the bill’s path forward remains unclear.
During a “Squawk Box” appearance on Tuesday, House Ways and Means Committee Chairman Jason Smith, R-Mo., said he expects a House vote on the tax bill “in the next couple of days.”

But there’s still pushback from some House Republicans who want relief for the $10,000 cap on the federal deduction for state and local taxes, known as SALT.

How to handle retroactive child tax credit changes

Meanwhile, there are lingering questions from tax professionals about how to handle possible tax law changes for 2023, especially for those who file early.
“It would be a waste of time to file your return and then find out you’re entitled to a bigger tax credit and have to amend,” said Bill Smith, national director of tax technical services at financial services firm CBIZ MHM.
While questions remain, Werfel provided some clarity on Friday, noting the agency has “deep experience in assessing and reviewing” retroactive tax law changes.

If there’s a change that impacts your return, we will make the change, and we will send you the update — whether it’s an additional refund or otherwise without you having to take additional steps.

Danny Werfel
IRS Commissioner

“If there’s a change that impacts your return, we will make the change, and we will send you the update — whether it’s an additional refund or otherwise — without you having to take additional steps,” Werfel told reporters during the press call.
However, the originally filed tax returns must be accurate, he added.
A press release from House Ways and Means Republicans on Friday said the IRS has already confirmed plans “to make necessary systems updates by around six weeks after the date of enactment” if Congress approves the tax package.
By law, filers claiming the child tax credit or earned income tax credit won’t receive refunds until Feb. 27 at the earliest, according to the IRS.

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The Department of Education says it fixed a problem with outdated inflation figures in the new FAFSA, which may affect the timing of financial aid offers.
This is just the latest complication in a rollout that has already proven problematic.

The U.S. Department of Education says it recently updated a key part of the new Free Application for Federal Student Aid formula, but, as a result, colleges won’t receive FAFSA applicant information until early March, instead of late January as initially estimated.
“Our ‘North Star’ here is trying to make sure that students get the help they need for college,” a senior Education Department official said on a press call Tuesday, adding that the “major” undertaking to update the form was imposed by Congress without additional funding or resources.

The new, simplified FAFSA soft launched Dec. 30 after a monthslong delay. Since then, the 2024-25 form has been plagued by problems.
“These continued delays, communicated at the last minute, threaten to harm the very students and families that federal student aid is intended to help,” said Justin Draeger, president of the National Association of Student Financial Aid Administrators.
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One of the issues has been specifically related to the new FAFSA’s affordability calculation, called the “Student Aid Index,” which estimates how much a family can afford to pay. At launch, the new FAFSA relied on old consumer price index figures from 2020, before the recent runup in inflation.
Just last week, the Department of Education said it planned to update this part of the new FAFSA formula, which will mean an additional $1.8 billion in aid for college-bound students this year.

That update has now been completed, the Department of Education said Tuesday, and, as a result, 1.3 million students will see larger Pell Grants, a type of aid available to low-income families.

It was initially unclear whether making those numbers current would cause further delays. The Department of Education previously said that once students successfully submit a completed FAFSA form, that information will be sent to schools in late January.
Now, the Department of Education says batches of FAFSA information will go out in the first half of March. “Updating the tables is a factor on the timeline,” a senior Education Department official said Tuesday.
“With this last-minute news, our nation’s colleges are once again left scrambling as they determine how best to work within these new timelines to issue aid offers as soon as possible — so the students who can least afford higher education aren’t the ones who ultimately pay the price for these missteps,” Draeger said.
Schools are waiting on the FAFSA information to begin building financial aid packages and to give students and families enough time to review and compare financial aid offers.
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Housing is typically one of the biggest expenses in someone’s budget.
Sometimes, it’s possible to pay rent with a credit card — but experts say it’s risky.
“This is a very large payment. It could rapidly spiral in terms of additional interest rate costs,” said Susan M. Wachter, a professor of real estate at The Wharton School of the University of Pennsylvania.

Svetikd | E+ | Getty Images

Housing is typically one of the biggest expenses in someone’s budget, and it’s natural to wonder about the best way to pay that bill.
For renters, sometimes it’s possible to pay with a credit card. While you could earn rewards and build credit by doing so, experts say it’s typically not a smart move.

“This is a very large payment. It could rapidly spiral in terms of additional interest rate costs,” said Susan M. Wachter, a professor of real estate at The Wharton School of the University of Pennsylvania.
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Your landlord might not even agree to accept payment via a credit card, as they may be subject to paying processing fees.
They simply “may not want the hassle,” said Matt Schulz, senior credit analyst at LendingTree.
Here are three things to consider before you charge your rent payment to a credit card.

1. Processing fees chip away the rewards

An appeal of paying your rent with credit might be earning rewards on that expense. The typical cash back card offers 1.5% to 2% back.
But most third-party payment services and large property management companies charge credit card processing or transaction fees. Those can run between 1% and 3% of the rent charge.
“The cost of that fee may eat into the value of any rewards you might earn, so it might not even be worth it,” said Melissa Lambarena, a credit cards expert at NerdWallet.
The median apartment rent nationwide was $1,964 in January, according to Rent.com. That would generate nearly $60 in monthly credit card processing fees, or more than $700 over the course of a year.
Make sure you review the terms before you decide which card to use. Processing fees vary, and there are some cards that do not charge them, such as the Bilt Mastercard.

2. You run the risk of accumulating interest

If you do not pay the card balance in full by the end of the statement period, you risk adding interest charges on top of your monthly rent.
“Don’t pay rent with a credit card if you’re going to be charged interest,” said Ted Rossman, an industry analyst at Bankrate.
Due to inflation, more people have been racking up and carrying debt, whether from credit cards or buy now, pay later loans. High interest rates can make some of these balances harder to pay off.
The average interest rate for all credit cards by the end of 2023 was 21.47%, the highest annual percentage rate since the Federal Reserve began tracking in 1994, according to LendingTree.

3. Your credit score may dip

Using credit cards for large transactions can affect your credit utilization rate, the ratio of debt to total credit, which weighs heavily into your credit score, Lambarena explained.
“Putting rent on your card’s credit limit could hurt your credit score,” she said. “It’s usually recommended by experts not to use more than 30% of your amount of available credit.”
If you want to put the rent payment on your card, a good buffer is to make sure you have enough available balance. You can ask for a credit limit increase from your card issuer to minimize the effect to your score.Don’t miss these stories from CNBC PRO: More

Finding extra money to set aside for cash savings is a difficult goal for many Americans.
Financial advisors say they use these tips to help people build better savings habits and find extra cash in their budgets to set aside.

Jgi/jamie Grill | Tetra Images | Getty Images

If you’re like most people, you may not have an emergency savings fund.
It’s not necessarily our fault, experts say, as our brains are programmed to focus on our needs today.

“We’re just not wired to save,” Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance, recently told CNBC.com.
He and other financial advisors typically recommend having at least three to six months’ living expenses set aside in case of an abrupt change in income or unexpected event.
Yet, research shows Americans’ cash balances often fall short of that goal. A new Bankrate survey released last week found just 44% of Americans could pay for an unexpected $1,000 expense with savings.
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Changing our instincts to spend today requires us to build new habits.

Klontz said he prefers to catch young professionals as they’re starting out, when they go from having little income as a student to feeling wealthy. At that point, it doesn’t feel like as much of a stretch to set aside 20% of your income toward retirement and 5% toward an emergency fund.
“It’s great if you can catch it early, because then it’s not painful at all,” said Klontz, who is a member of the CNBC Financial Advisor Council.
“But when you’re already stretched to the max, which most Americans are, [saving] becomes a painful exercise,” he said. “And that’s why many, many people don’t have it.”
Financial advisors often see this barrier to savings with their clients and have their own tactics for nudging clients to set aside more cash and free up flexibility in their budgets.

1. Start with building a habit

When interest rates were low, it was sometimes a tough sell to get clients to set aside more cash, admits Marguerita Cheng, a CFP and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland.
“[Now] savers are earning more interest, so it’s a lot more compelling,” said Cheng, who is also a member of the CNBC FA Council.
Still, reaching the minimum three-month threshold for emergency savings can be discouraging because it is so high.

To help combat that, she encourages clients to focus on building a habit, not on the amounts they initially start setting aside.
For example, a family may start by setting aside $10 every time the paycheck comes in.
“It sounds small,” Cheng said. “But it actually works because they can achieve that goal.”
Then, when other balances are paid down, such as a credit card or car loan, Cheng said she advises clients to put that extra money to increase their savings contributions. That way, $10 per paycheck may increase to $25, $50, $100, $200 or more, she said.
There can be some flexibility. For example, if a $425 monthly car payment comes to an end, she tells clients to put half of that sum in savings.
“It’s ok if you spend half to enjoy your life,” Cheng said she tells clients. “But what I need you to do is save the other half … so that you can enjoy your life in the future.”

2. Trim spending where you can

To free up more money to devote to savings, it also helps to cut back on discretionary spending.
Two big culprits advisors say they often see taking cash away from clients’ budgets are dining out and entertainment costs.
“The big one is cable,” said CFP Cameron Valadez, partner at Planable Wealth in Riverside, California.
By switching from a traditional cable plan that costs $250 per month to an online provider, it might be possible to cut that bill to $65 or $70 per month — extra cash that can be used to boost emergency savings, he said.

3. Revisit your insurance coverage

One monthly cost many people do not pay enough attention to is insurance, including home, automobile and other policies, according to Valadez, who is also host of the “Retired-ish” podcast.
To save on those policies, it helps to shop carriers more often, such as once a year, to make sure you’re getting the best deal, he said.
“Most people get their homeowners insurance when they buy their home, and they never look at it again,” Valadez said. “And that’s a huge mistake.”
Bundling home and auto insurance may be another way to save, he said.

In addition, policyholders may find extra savings by seeing if their current or prospective insurance carriers will offer discounts, such as for workers in civil servant positions. This may also apply to your homeowners policy if you’ve made upgrades that qualify, such as deadbolt locks, an alarm system or fire sprinklers, Valadez noted.
Once you have some emergency cash set aside, you may want to consider increasing your deductibles on these policies, which can reduce your monthly payments. But be prepared to pay a larger upfront sum if an emergency does occur, Valadez said.
By increasing your homeowners policy deductible from $1,000 to $2,500, for example, you may be able to shave 10% to 12% on your annual costs, he said.
Importantly, before making any policy changes, it is crucial to consider whether you can still financially withstand a devastating event, Valadez said.Don’t miss these stories from CNBC PRO: More

TikTok has become one of the most popular sources for financial tips and advice, particularly among Generation Z.
However, “finfluencer” content often lacks sufficient disclosures, which can make it hard to tell if the information you are getting is accurate and unbiased.
Only 20% of the finfluencer content that contained investment recommendations included any form of disclosure, the CFA Institute found.

Between girl math, loud budgeting and cash stuffing, the trendiest financial advice is increasingly born on TikTok.
That has helped financial TikTok, also known as FinTok, take off.

Now it’s one of the most popular sources for financial information, tips and advice, particularly among Generation Z. The hashtag #FinTok, representing just the financial TikTok community, has more than 4.7 billion views on the platform.
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In fact, Gen Zers are nearly five times more likely to say they get financial advice — including stock tips — from social media than adults in their 40s or older, according to a CreditCards.com report.
Young investors, especially those ages 18 to 25, look to so-called “finfluencers” for money-saving, or money-making, wisdom, other research also shows.
With less access to professional advisors and a preference for obtaining information online, Gen Zers are more likely than any other generation to engage with finfluencer content on TikTok, YouTube and Instagram, according to a recent report by the CFA Institute.

Finfluencers appeal to Gen Z investors because they produce educational and engaging content that is instantly accessible and, even better, free, the report found.
“Finfluencers now play an increasingly significant role in educating young people about finance,” said Rhodri Preece, a certified financial advisor and senior head of research at the CFA Institute.
“However, our research shows that finfluencer content often lacks sufficient disclosures, which can hinder the ability of consumers to evaluate the objectivity of the information, and some investors may be unaware when and how finfluencers are being paid to promote financial products,” he added.

The downside of FinTok

Until there is more oversight, the CFA Institute advises consumers to look into a finfluencer’s qualifications as well as potential financial motivations, and cross-check any information offered online.
To verify a certified financial planner’s background, go to the CFP Board’s website. Brokers and brokerage firms can be looked up on the Financial Industry Regulatory Authority website and investment advisors can be checked out on the U.S. Securities and Exchange Commission’s website.
For other professional designations, go to the FINRA page that lists them, which includes links to the designation organizations.

The upside of FinTok

Aside from investment or tax advice, FinTok can be incredibly helpful when it comes to tackling challenging financial topics from paying down debt to compound interest and saving for long-term goals, other experts say.
“The average American didn’t learn the basic tools in school or from their parents,” noted Michael Hershfield, founder and CEO of Accrue Savings. “That information is power,” he said.
For example, TikTok’s latest “loud budgeting” trend aims to encourage consumers to consciously stop overspending and recognize their economic limitations. That type of financial education is key at a time when most Americans say they are living paycheck to paycheck.
“Social media is a cancer but there’s good that can come from it,” Hershfield added.
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An estimated 7 out of 10 people will require long-term care in their lifetime, according to a report from Health and Human Services.
About 38 million family caregivers in the U.S. provide unpaid care valued at about $600 billion a year, according to AARP.
Medicare provides very limited coverage for long-term care — and it is vital to check your plan to find out what, if any, services may be covered.

Maskot | Maskot | Getty Images

People living longer and in poor health has become a costly trend. An estimated 7 out of 10 people will require long-term care in their lifetime.
The median cost for a private room in a nursing home is more than $100,000 a year — and it’s $60,000 or more a year for a home health aide, according to a Genworth survey. The median cost for an assisted living facility is $54,000.

“In some cases, residents and their families don’t know their total costs until they receive their monthly bill,” Sen. Bob Casey, D-Pa., who chairs the Senate Special Committee on Aging, said in a hearing Thursday on costs and transparency in assisted living facilities.
“These substantial costs and hidden fees make it nearly impossible for older adults and their families to accurately budget for long-term care,” he added.
The alternative — caring for aging family members on your own — can also come with hefty expenses.
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About 38 million family caregivers in the U.S. provide unpaid care valued at about $600 billion a year, according to a 2021 AARP report. That figure doesn’t include out-of-pocket costs related to looking after a loved one. 

“The average family caregiver spends about 26% of their income [on caregiving activities], which nationally averages out to about $7,000,” said AARP’s family and caregiving expert Amy Goyer, referring to the 2021 AARP analysis. “Some spend much more and some spend much less,” depending on their location and the care they provide, she added.
Knowing a few key terms can help you understand the services an aging parent or relative may need — and plan ahead for how to afford them.
Here are five essential terms you should know: 

Activities of daily living

Long-term care involves various services to meet a person’s health or personal care needs when they can no longer perform everyday activities independently and require assistance. These everyday tasks are often called “activities of daily living” — and can include bathing, dressing, eating, taking medications, using the bathroom and transferring from standing to a chair or bed. 

Continuous care retirement communities

There are many choices for where your loved one can live as they grow older and receive long-term care when needed. “Aging in place” while living at home or going to a nursing home are not the only two options. 
“Not everyone is going to qualify for nursing home care — not everybody needs it,” said Abbe Udochi, founder and CEO of Concierge Healthcare Consulting, a New York-based geriatric care management practice. “Nursing home care is like living in a hospital … you’re going to find people with serious functional issues and cognitive issues.” 
Continuous care retirement communities run the gamut and can be an alternative to aging in one facility or group of facilities. “The idea is to have these all on the same campus so that you can go between the levels of care as you need,” said AARP’s Goyer.

Starting with “independent living,” older adults can live in a house, condo or apartment and receive several services — two or three meals daily, housekeeping and/or laundry services. 
When they need more care, they can move to “assisted living,” where they may get help with some activities of daily living, such as bathing, dressing or eating. The level of assistance can vary and costs rise as more help is needed. 
The highest level of care is “skilled nursing care” for those who are chronically ill or disabled and can no longer care for themselves. This could be a particular unit or nursing home within the community. Some communities also offer “memory care” units or facilities for residents with dementia or Alzheimer’s disease, providing more secure and specialized care. 

Within these communities, costs can vary greatly depending on the type of care and geographic location.
Some continuing care residential communities offer a monthly rental option. Others require residents to “buy in” by paying a sizeable entrance fee — more than $442,000 on average, according to the National Investment Center for Seniors Housing & Care. Then they refund a percentage of that fee when the resident leaves the community. Monthly fees may also be charged. 
Within these communities, average monthly rent for independent living is about $3,900, assisted living costs about $6,700 a month, and memory care costs about $8,400 a month, according to the National Investment Center.

Medicare and Medicaid

When it comes to paying for long-term care services and facilities, many people believe that Medicare will cover the cost, as long as you’re 65 and older and have that federal health insurance. They’re wrong. 
Medicare provides very limited coverage for long-term care — and it is vital to check your plan to find out what, if any, services may be covered. Some Medicare Advantage plans may cover specialized care, including skilled nursing, respite and hospice care.  
Medicaid pays for most long-term care services — but only for people with low incomes and little savings. 

Long-term care insurance

Depending on the plan, long-term care insurance pays for services from at-home care to assisted living, memory care, skilled nursing care, and hospice.
“There are long-term care insurance policies that will pay for care once you are unable to perform two of six daily living activities without assistance, such as bathing or showering, dressing, getting in and out of bed or a chair, walking, using the toilet and eating,” said certified financial planner Ivory Johnson, founder of Delancey Wealth Management in Washington, D.C. 
Long-term care insurance may have annual premiums that increase over time or may be included as a rider to a life insurance policy. “The latter has a death benefit if you never need long-term care, premiums that cannot be increased, and is more expensive,” said Johnson, a member of the CNBC FA Council. 
According to data from the American Association for Long-Term Care Insurance, the average annual premiums for policies with a 3% growth rate in 2021 ranged from $2,220 at age 55 for a single man to $5,265 at age 65 for a single woman, if both had some health issues. Couples paid less per person.
Employers are increasingly offering long-term care insurance as a workplace benefit. It’s worth checking to see the workplace benefits your employer may offer to help with caregiving for an older spouse, parent or relative.  

Respite care

Family caregivers may spend 20 to 40 hours a week or more caring for their loved ones. Respite care can help alleviate some of the emotional, physical and financial stress.
“It really simply just means a break from caregiving,” Goyer said. “And it’s one of the most crucial things that caregivers need.”
Asking friends and family for caregiving help is often the first step but may be unrealistic depending on their responsibilities. Other options for respite care include finding an adult day care center, paying for professional help in the home, or moving your loved one to an assisted care residence for a short stay. 

Some long-term care insurance plans provide coverage for respite care, but there may be other places to get free or low-cost assistance. Check your loved one’s Medicare plan. Military veterans may be able to get resources from the Department of Veteran Affairs to cover the cost of respite care. 
The U.S. Administration on Aging’s Eldercare Locator can connect you with a local Area Agency on Aging that can offer in-home respite care support, including sitter service and preparing meals. The ARCH National Respite Network can also help you find local respite providers.  
Coverage for respite care can vary depending on your Medicare, Medicaid or health insurance plan. Ask your provider. And ask your employer. Some companies may offer paid time off for workers to provide respite care or senior caregiving. 
If your employer offers a dependent care flexible spending account, you can typically put in up to $5,000 in this account through payroll deductions, to use for respite care and other elder care costs, as long as you claim the qualifying family member as a dependent on your tax return. 
Employers may also offer senior caregiving support by helping employees navigate Medicare and Medicaid, explore in-home and out-of-home care options, and connect them to caregiving resources.  
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— CNBC’s Stephanie Dhue contributed to this report. More