Financial planning for autism: Raising a child with autism brings unique challenges, and ensuring their financial security is paramount. We all want our children to succeed on their way to a prosperous life. However, autism spectrum disorder (ASD), particularly on the severe ends of the spectrum, can limit independence well into adulthood. This predicament means that the family unit becomes vital for caring for one another.
A well-thought-out financial plan can provide stability for your child and ease the burden on the entire family. This plan not only ensures the long-term stability of your child with autism but also alleviates the financial strain on the whole family, allowing you to focus on what truly matters—supporting your child’s development and happiness.
Although financial planning for autism can seem overwhelming, ABA Centers of America has your back. From basic budgeting to accessing state resources, establishing a trust, and exploring specialized savings accounts, this article will guide you through the essential steps of family financial planning for autism. We will also discuss the experts you can consult to navigate this journey effectively.
1. Basic Budgeting: A Solid Foundation
Creating a comprehensive budget is the first step toward effective financial planning for families with a child on the autism spectrum. A budget provides a clear overview of your income, expenses, and savings goals, allowing you to allocate resources effectively and make informed financial decisions. Think about the following parameters when creating a budget:
- Income Assessment: Begin by calculating your total household income, including salaries, wages, and any other sources of income. Consider both regular and irregular income streams for a realistic view of your financial resources.
- Autism-Related Expenses: These may include therapy sessions, specialized education, assistive technology, medical appointments, medications, dietary requirements, and other necessary supports. Research and estimate the costs of these services to include them in your budget.
- Essential Living Expenses: Allocate a portion of your budget to cover necessary living expenses such as housing, utilities, groceries, transportation, and insurance.
- Discretionary Spending: Set aside a portion of your budget for discretionary spending, including entertainment, dining out, vacations, and non-essential purchases. While enjoying life and creating lasting memories is essential, be mindful of balancing your financial goals and discretionary expenses.
- Emergency Fund: Prioritize building an emergency fund to handle unexpected expenses or income disruptions. Aim to save at least three to six months’ worth of living expenses in a separate account easily accessible when needed.
- Savings and Investments: Allocate a portion of your budget towards savings and investments to secure your family’s long-term financial stability.
Budgeting won’t happen overnight, and there will be growing pains. Luckily, there are specific resources for financial planning for autism you should know.
2. Savings Accounts for Individuals with Disabilities
Savings accounts designed specifically for individuals with disabilities are structured to provide them and their families with a way to save money while maintaining eligibility for means-tested government benefit programs. The two prominent examples are Achieving a Better Life Experience (ABLE) accounts and Special Needs Trusts (SNTs)
- ABLE Accounts: Contributions made to ABLE accounts are not subject to federal income tax, and the funds grow tax-free. Additionally, withdrawals used for qualified disability expenses are tax-free. Funds in an ABLE account can pay for various disability-related expenses, such as education, housing, transportation, assistive technology, healthcare, employment support, and personal support services.
- SNTs: By placing funds in this type of trust, individuals with disabilities can maintain eligibility for government benefit programs like Medicaid and Supplemental Security Income (SSI), which have strict income and asset limits.
By leveraging these specialized savings accounts, individuals with disabilities can accumulate funds, maintain crucial government benefits, and secure their financial future.
3. Accessing State and Federal Resources: Maximizing Support Programs
As a society, we have decided that it is a core principle to care for each other to the best of our ability. These programs aim to assist families in managing the financial burdens associated with autism-related expenses. Let’s explore some popular options that you can tap into:
- Medicaid: Medicaid is a state and federal program that provides healthcare coverage for low-income individuals and families. It is a crucial resource for families of children with autism as it can cover a wide range of medical services, therapies, and prescription medications. Medicaid waivers, such as Home and Community-Based Services (HCBS) waivers, may be available in your state to provide additional support, including respite care, behavioral support, and in-home services.
- Supplemental Security Income (SSI): SSI is a federal income assistance program administered by the Social Security Administration (SSA). It provides financial support for individuals with disabilities, including children with autism, who have limited income and resources. The program offers monthly cash benefits that can help cover basic living expenses and medical costs.
- Individuals with Disabilities Education Act (IDEA): IDEA is a federal law that ensures children with disabilities, including autism, have access to free and appropriate public education (FAPE). Under this law, children with autism receive special education services, therapies, and related support. These services are provided through an Individualized Education Program (IEP) or a 504 plan. By leveraging IDEA, families can access educational resources and services that significantly benefit their child’s development.
- State Autism Insurance Mandates: Many states have enacted autism insurance mandates requiring health insurance companies to cover certain autism-related services. These mandates often include coverage for diagnostic evaluations, Applied Behavior Analysis (ABA) therapy, and other evidence-based treatments. Familiarize yourself with the specific coverage details and limitations provided by your state’s autism insurance mandate to maximize the benefits available to your child.
- Respite Care Programs: Caring for a child with autism can be physically and emotionally demanding, and you must also take care of yourself. Respite care programs aim to provide temporary relief to caregivers by offering short-term breaks. State agencies or community organizations provide funding and trained professionals who can look after your child while you take some time for self-care.
To access these resources, contact your state’s Department of Developmental Disabilities, Department of Health and Human Services, or Department of Education. These agencies can provide information about eligibility criteria, application processes, and available programs specific to your location.
4. Assembling an Expert Team
Not everyone will have the time to monitor all financial planning aspects closely. Navigating these complexities of autism may require the expertise of various professionals. Consider consulting the following experts:
- Financial Advisor: A financial advisor can help you assess your overall financial situation, develop investment strategies, and provide guidance on managing resources effectively.
- Special Needs Attorney: Engaging a special needs attorney is essential for creating a trust, navigating legal complexities, and ensuring your child’s eligibility for government benefits.
- Tax Advisor: Consult a tax professional who understands the intricacies of autism-related tax deductions, credits, and other financial benefits available to families.
- Social Worker or Case Manager: These professionals can guide you through accessing state resources, understanding eligibility requirements, and maximizing the available support systems.
- Therapists and Educators: Collaborate with therapists and educators who work with individuals with autism. They can provide insights into potential costs, funding options, and practical strategies for managing your child’s unique needs.
ABA Centers of America and Autism
Financial planning for autism is part of broader life planning, which includes giving your child the best options to guarantee well-being and happiness. ABA Centers of America can help ensure their long-term success. We specialize in Applied Behavior Analysis (ABA) therapy, the recognized best therapy for those diagnosed with ASD. Through compassionate, individualized plans, kids on the spectrum can develop critical skills to make their life easier and family life more pleasant.
If you want to check your financial options and see what resources are available, call 844-923-4222 or reach out on our website.
