Having a written financial plan makes the majority of people feel financially confident, according to Charles Schwab. When you’ve got a child that’s been diagnosed with a disability, you’re likely to worry about the financial consequences. A recent study found that the families of children with special needs are $18,000 per year worse off. But, by having a written plan and following these financial tips, you’ll be as well off as you can be.
Work from home
A study published in the American Academy of Pediatrics (AAP) found that the parents of disabled children are more likely to reduce their hours or quit their jobs following their child’s diagnosis. This is an honorable thing to do, but there are ways around this so you can continue to bring in a decent income. Flexible working and working from home have become normal over the past two years, so see if this is a possibility for you. Flex Jobs states that 80% of companies offer flexible working. Even if your current job won’t allow this type of work setup, there are plenty of employers out there that will let you do it.
Claim what you’re entitled to
The majority of the 9 million U.S. families caring for a disabled child are entitled to federal or state benefits. Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Medicaid are the most common benefits these individuals qualify for. If a child has a disability due to medical negligence, then they may be entitled to compensation. For example, hypoxic-ischemic encephalopathy, brachial palsy, and cerebral palsy can all happen at birth. A lifelong injury like cerebral palsy should be reviewed by a lawyer who will determine whether there’s a case of medical negligence and compensation is due. While waiting for confirmation of this, cerebral palsy financial assistance plans can help. These include non-profit organizations that can provide help with things such as mobility aids and service animals.
Set up tax-free savings
One study found that caring for a disabled child costs anything from $108 per year to $8,742. You never know when your child is going to need something to assist them or when you’re going to need some cash to fund an unexpected expense. Having a savings account to fall back on is wise. ABLE accounts and supplemental needs trusts allow the family of disabled children to save money without it affecting their benefit entitlements. ABLE accounts can be used to pay for the majority of your living expenses. But, the rules for a supplemental needs trust state that it can only be used to pay for items that benefits don’t cover, such as dental care and caregiving costs.
There can be a big financial squeeze when your child is diagnosed with a disability. But there are ways to ensure your cash goes as far as possible, as well as things you should do to boost your income.