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This arrangement involves a caregiver residing in the home of the person receiving care, providing services like personal care, companionship, and household assistance. In return, the caregiver receives free housing and meals, rather than a traditional monetary wage, although sometimes a small stipend is also provided. This type of agreement often arises in situations where the care recipient has limited financial resources but needs consistent, on-site support. A typical scenario might involve an elderly individual with mobility issues who benefits from having someone present to help with daily tasks.

The primary benefit of such an arrangement lies in its affordability for the care recipient and the provision of a stable living environment for the caregiver. For individuals or families facing financial constraints, it offers a viable alternative to costly professional care services. Historically, informal care arrangements based on reciprocity have been common, often within families or close-knit communities. The formalized version, using a caregiver from outside the immediate circle, provides a structured way to ensure consistent care while addressing housing needs.

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