Hey everyone!
Navigating the financial landscape of life can be challenging for anyone with neurotypical children…
For families like ours with special needs or neurodivergent loved ones, financial planning becomes a crucial component of long-term security, stability, and enables peace of mind so you can live your best life.
I mean all parents worry about their children’s future, but when your child has disabilities, is neurodivergent, or has special health care needs, it’s normal to have additional concerns.
Things like:
- What kind of life will my child want to live and where?
- If my child can’t work, how can I make sure to cover their expenses like rent and transportation?
- How do I set aside money for my child’s future without affecting their government benefits?
- What will happen to my special needs child when I am gone?
- How do I ensure they properly manage their inheritance after I’m gone?
- Who will be there to help them when I’m not here?
Does any of that sound familiar?
Want to know how I know this?… because I had the same concerns too!
Being a parent of 3 special needs children with varying levels of independence, proper financial planning was a necessity for my wife and me.
We wanted to ensure they had a good quality of life in the event we were not there to help them when needed.
Add to that until recently, we were a single income family, so our financial game had to level up by quite a bit!
Below are 10 reasons why thoughtfully planning your child’s financial future is SO important.
Some are simple, some are challenging; some cost nothing, and some require paying legal fees.
Get started on some of these today, so you’ll have peace of mind tomorrow.
1. Doing Nothing And Hoping For The Best Is NOT A Plan
Many families delay and put off working on their own planning.
Procrastination can be even more common when there are special needs children involved.
It often feels like there is so much to do and so much to learn that the totality of it all is just too overwhelming.
You don’t know where or how to start, so you end up staying put and doing nothing.
But there are real consequences to not having a plan including the potential loss of very important benefits for your loved ones with disabilities.
The good news is that it’s never too late to take that first step towards making a plan.
2. Ensures Adequate Care
One of the primary reasons for special needs financial planning is to ensure that individuals receive the necessary care throughout their lives.
The costs associated with medical care, therapies, and daily living assistance can be overwhelming.
According to a report by the National Disability Institute, households containing an adult with a disability that limits their ability to work require, on average, 28% more income (or an additional $17,690 a year) to obtain the same standard of living as a similar household without a member with a disability.
Proper financial planning helps a family budget for these ongoing expenses, ensuring their loved ones receive the care they need.
3. Protects Government Benefits
Many individuals with special needs rely on government programs like Supplemental Security Income (SSI), Social Security Disability Income (SSDI), and Medicaid for essential services.
However, accumulating or inheriting assets can jeopardize eligibility for these benefits.
Proper special needs planning is crucial to protecting your loved ones’ eligibility for these government benefits.
My wife and I learned this lesson the hard way.
My son took up a part-time job while on SSDI.
No one told us that his benefits are income- and asset-dependent.
We learned the hard way when his benefits were cut.
It was a scary time, but we learned some tools to help avoid this from happening again.
There are several legal tools and government regulations such as Special Needs Trusts (SNTs), ABLE Accounts, and the Americans with Disabilities Act (ADA) that are critical for allowing families to save for their loved ones without affecting eligibility for these programs.
Want to learn more about special needs trusts and how they work? Check out this article from ARC’s website.
4. Provides for Long-Term Stability
Long-term financial stability is vital for individuals with special needs.
Establishing a well-structured financial plan that includes savings accounts, investments, and trusts can create a stable foundation for the future.
According to the Special Needs Alliance, a comprehensive plan addresses not only immediate needs, but also prepares you and your loved ones for future challenges.
A comprehensive plan will also ensure financial resources are available when needed.
5. Covers Education and Vocational Training
Special needs financial planning also extends to education and vocational training.
Many families want to ensure that their loved ones receive a quality education and have access to job training opportunities.
Special education opportunities can help ensure equality of opportunity, enable independent living, and provide economic self-sufficiency.
Financial planning allows families to allocate funds for specialized educational programs, training, and even college expenses which will pave the way for greater independence for your special needs loved one.
I know from experience. We found a great resource in the metro Detroit area called The Living and Learning Center that offered a free IT Cybersecurity training program. My son was fortunate enough to qualify, passed the course, and earned a certification in IT cybersecurity.
This education is enabling him to have a job in a field he loves, enjoy learning again, and enables him to live on his own.
6. Addresses Unexpected Costs
Life is unpredictable, and unexpected costs can arise at any time, particularly for families with special needs children.
Whether it’s an emergency medical procedure or unexpected home modifications, having a financial plan can help families manage these expenses without incurring debt.
Families of special needs children often face large, unanticipated costs that can strain their finances.
Having a proper financial safety net is essential to manage these situations effectively.
It’s why I insist on having a 6-month emergency fund PLUS sufficient life insurance coverage using both term and whole life insurance to create a safety net that covers a wide range of contingencies.
7. Supports Family Needs and Mitigates Family Stress
The impact of caring for an individual with special needs extends beyond the person to their entire family.
The psychological impact of financial stress can be significant for families with special needs, and can affect family dynamics, relationships, and overall well-being.
A well-thought-out financial plan can relieve some of this stress in the present, allowing families to focus on support and care.
A solid financial plan can also alleviate anxiety about the future, improving overall well-being for everyone involved.
According to a study published in the Journal of Family Psychology, financial worries & strain is directly linked to increased psychological stress and decreased family satisfaction.
And according to a Helpguide.org, financial stress has a cyclical link with mental health problems such as depression, anxiety, and substance abuse.
Proper planning for financial security helps alleviate these pressures and improve family life, enhances personal mental health, and enables families to focus more on quality time together.
8. Encourages Independence
One of the ultimate goals of financial planning for individuals with special needs is to foster independence.
Proper planning provides individuals with the means to make choices and live more autonomously.
Financial literacy programs tailored to those with disabilities can empower them to manage their finances effectively, promoting self-sufficiency, and lead happy, independent lives.
My son is a great example of this. It’s been a struggle for helping him learn to manage his finances.
Over time, lots of lessons, and developing a system that works for him. He has made good strides and is becoming more independent every day.
Is it perfect… nope!
Is it better now than this time last year?… hell yes! 😊
With special needs children it’s really important to measure the gain not the gap!
9. Legacy Planning
Planning for the future includes considering how assets will be distributed after one’s passing.
For families with special needs, it’s vital to ensure that our loved ones are cared for even after we are gone.
Establishing a will and utilizing special needs trusts can help protect the financial future of an individual with disabilities.
Proper legacy planning can prevent financial mismanagement and ensure that funds are used to benefit your special needs children, while also being as equitable and fair to any non-disabled children as possible.
10. Access to Professional Resources
Working with financial planners who specialize in special needs can provide families with the expertise necessary to navigate complex financial landscapes.
These professionals can offer tailored advice on trusts, benefits, and investment strategies.
Accessing these resources can be invaluable in developing a comprehensive financial plan that meets the unique needs of individuals with disabilities.
The Special Needs Alliance provides a directory of attorneys with experience in this niche area.
If you need help finding an experienced financial planner who caters to special needs families, look no further than Zeke Zimmerman!
If needing guidance, reach out to him TODAY!
Conclusion
A good special needs financial plan provides more than just financial clarity and confidence.
It also allows YOU the parent to make the decisions around your loved one’s current and future care.
A good plan places their security and well-being in your hands and not just at the whim of agencies, bureaucracies, and other forces.
A good plan also helps to ensure the maintenance of your special needs loved one’s quality of life and well-being with your directions and input.
pecial needs financial planning is essential for ensuring that individuals with disabilities receive the care and support they need throughout their lives.
From protecting government benefits to promoting independence and reducing financial stress, thoughtful planning can significantly enhance the quality of life for both individuals and their families.
It’s never too early or too late to start planning; the sooner families take proactive steps, the better prepared they will be for the future.
Live The Life You Love, Want, And Deserve! 😊
Do you need 1 on 1 coaching and guidance?
Schedule a call with my friend Zeke Zimmerman here!
