Parents of special needs children face unique financial challenges as they strive to provide for their kids’ long-term well-being. It’s crucial to have a solid financial plan in place since special needs children often require ongoing support and care throughout their lives. Today, we share some important tips on financial planning for special needs children and steps to take for the benefit of your child.
(Guest article by Elena Stewart)
Calculate and evaluate your assets
The first step in financial planning for your special needs child is to evaluate your current assets. Take stock of your finances, including your savings, investments, and any retirement accounts. Doing so will help you determine your current financial standing and provide a baseline for future planning.
You can also consult a financial advisor for guidance through the process.
Develop a budget
The next step is to create a budget. A good budget will help you track your income and expenses while planning for future expenses related to your child’s needs. These might include medical costs, therapy sessions, equipment, and other related expenses.
Be sure to include all costs related to your child’s care in your budget (and leave some wiggle room for unexpected ones!).
Use any employee benefits you have
Many employers offer estate planning benefits to their employees. You may be able to take advantage of these perks to create a special needs trust for your child. A special needs trust will help protect your child’s financial future by allocating funds for their care while safeguarding their eligibility for government benefits.
See if you’re eligible for a pension plan, 401(k) plan, and/or stock options too. Consult with your employer’s HR department to learn what benefits are available to you!
Keep your essential documents organized
It’s crucial to have all your essential documents in order (e.g., will, insurance policies, property deeds, etc.). Make sure you have copies of these files stored in a safe place, so they’re readily available when you need them. Keeping these documents organized will help ensure your wishes and plans for your child’s future are followed.
Consider digitizing all your paper records and combining everything into a PDF. That way, instead of rifling through stacks of papers or folders, you can easily find the necessary information with a few clicks. Using PDFs will also make it much easier to share documents with others and keep backups in case of an emergency.
Find an online tool that lets you delete, rotate, and reorder pages on the spot. You can also use free online tools to insert additional information into your document. That way, you’ll also free up physical space in your home office and eliminate the need for bulky file cabinets!
Make wise investments
Investing in a diversified portfolio is a wise way to create wealth and ensure financial stability for your child (and your whole family!). However, it’s essential to consult with a financial advisor who has experience in special needs planning. That way, you can ensure your investments align with your child’s long-term needs without compromising your current lifestyle.
Prevent debt
Avoiding bad debt is crucial to fostering financial stability for your family. Create a budget, and stick to it to avoid overspending. Don’t take on more debt than you can handle so that you can stay financially secure and able to provide for your special needs child when necessary.
Wrapping up
Planning for your child’s financial future when they have special needs requires careful consideration and strategy. By taking the right steps, you can ensure your child’s long-term well-being and give them the support and care they need to live a fulfilling life.
Remember to go through your assets, make a budget, organize your documents, invest wisely, and implement the other tips above. And don’t hesitate to speak with a financial advisor who specializes in special needs planning to help you through each step of the process.
This article should provide some insight into the things to consider in financial planning for special needs children. Feel free to leave a comment below, or let us know if you have any questions!
