Guide to Financial Planning
Financial planning for a family is a hefty duty that parents and caregivers carry–but for those that have children with autism, that duty is oftentimes heavier. The typical costs of raising a child are now combined with therapies, specific schooling, activities, and more to help cater to your child’s needs. According to the United States Department of Agriculture, the average cost of raising a child in the United States is now just around $300,000. That comes out to roughly $18,000 annually. However, according to Mint, a financial education company, the cost of raising a neurodivergent child raises these costs to about $1.4 million, which is $60,000 annually–at the very least. Additionally, if their needs for services continue into adulthood, those costs continue as well.
Finding resources and understanding how they can apply to you can be complicated to navigate, and we hope this outline can alleviate that.
Types of Benefits
Public Benefits
Public benefits are forms of assistance provided by the government, usually directed to individuals and families in need. They are meant to provide resources for well-being and economic assistance. For many people with autism and their families, public benefits provide financial assistance and vital services.
Supplemental Security Income (SSI)
This program provides monthly cash payments to people with disabilities. It is administered by the Social Security Administration, and payments vary based on financial need.Supplemental Security Disability Insurance (SSDI)
This program provides benefits to individuals that have paid Social Security taxes, and partially covers the disabled individual’s spouse and/or dependents. The program is administered by the Social Security Administration and is not based on financial need.
Medicaid
This program has waiver programs that provide assistance with long-term care. Eligibility is determined based on your income, and the application process will vary slightly depending on the state you reside in.
ABLE Accounts
The Achieving a Better Life Experience (ABLE) Act, enacted in 2014, allows those with disabilities to create tax-advantaged savings accounts. Through this account, one can save money without losing eligibility for other federally funded programs such as SSDI. The money in ABLE accounts can be used for qualified disability-related expenses, such as education, housing, and transportation.
There are many different government programs available to you, and it’s important to utilize them to the best of your ability! To better understand these benefits and how they may apply to you, check out our webinar that discusses these topics in great detail.
Grants and Scholarships
Grants are typically funds that are given to the caregiver or individual based on financial need. Some, but not all, are applied to specific needs such as education, therapy, equipment, etc. Scholarships are generally funds for educational purposes, and the students apply themselves. They are often based on an individual's academics and extracurricular. For example, recreational scholarships are funds that are usually devoted to non-educational activities, such as sports or camps.
Information about recreational, educational, and service dog scholarships and grants and their applications can be found here. You may also access funding sources specifically for assistive technology resources.
Tips for Financial Assistance
Sifting through resources can be overwhelming. We compiled some factors that may be helpful to keep in mind when researching grants or scholarships you may be applying for, as well as tips to help you when applying for them. See our guide here.
Budgeting for Parents
Finances are an extremely important part of life. For parents or caregivers, it can be extremely helpful to navigate increased costs through budgeting. Evaluating current finances and planning for the future can help parents feel well-prepared and may alleviate financial stressors. For tips on how to build a budget, visit our 7 Steps to Building a Budget Guide here.
While financially planning for your family can be a daunting task, it is certainly not impossible. By planning ahead and obtaining helpful information, you can ensure that you are not alone on this journey.