Autism Financial Planning: 4 Strategies for Your Child’s Financial Future

Given the findings from Research in Autism Spectrum Disorders, which estimate the lifetime cost of supporting an individual with an autism spectrum diagnosis at $3.6 million—a figure that may rise to $11.5 billion by 2029 if current prevalence rates persist— families cannot overstate the importance of autism financial planning. Ensuring the proper care and support for your loved one with this condition requires a strategic approach to financial planning.

Here are four essential strategies to embark on this critical journey:

1. Develop a Basic Budget:

The cornerstone of autism financial planning is establishing a comprehensive budget. This budget should give a clear overview of the family’s income, expenses, and savings goals, enabling effective resource allocation and informed financial decisions. When crafting your budget, consider the following steps:

• Assess your income: Begin by calculating your total household income, including all wages, salaries, and other sources of both regular and irregular income.
• Autism-related expenses: Your budget should account for the costs associated with therapy, specialized education, medical consultations, medications, assistive devices, specific dietary needs, and other essential supports.
• Fixed living expenses: Your budget must include essential expenses such as housing, utilities, groceries, transportation, and insurance.
• Additional expenses: It’s important to allocate funds for discretionary spending, including leisure activities, dining out, non-essential purchases, and vacations, to ensure a balance between enjoying life and meeting financial goals.
• Emergency fund: An emergency fund can cover unexpected expenses or income interruptions. We recommend saving an amount equal to three to six months’ worth of living expenses in an account that’s easily accessible.
• Savings and investments: Dedicate a segment of your income to savings and investments to secure your family’s financial future over the long term.

While budgeting can be a demanding and intricate process, it is vital for the financial health of your family. Thankfully, there are specialized resources available for autism financial planning, offering families the guidance and support needed to navigate this essential task effectively.

2. Explore Specialty Savings Accounts for Autism Financial Planning:

In the realm of autism financial planning, selecting a specialty savings account is a strategic move to ensure your child maintains eligibility for vital federal benefits. These accounts are tailor-made for individuals with disabilities, allowing for savings that do not affect eligibility for government assistance programs, which often have stringent income and resource thresholds. Forbes highlights that, for instance, to be eligible for Supplemental Security Income (SSI), an individual’s savings must be at most $2,000. Consider these two pivotal options for specialty savings accounts:

• ABLE Accounts: Contributions to ABLE accounts are exempt from federal income taxes, and the funds accrue interest tax-free. Additionally, withdrawals made for qualified disability expenses incur no taxes. The versatility of ABLE accounts means parents can allocate funds towards a wide range of disability-related costs, such as education, housing, transportation, assistive technologies, medical care, employment support, and personal assistance services.
• Special Needs Trusts (SNTs): Establishing a Special Needs Trust is another effective strategy to preserve a person with disabilities’ eligibility for government assistance programs like Medicaid and SSI, which impose strict limits on income and assets. By placing assets in an SNT, individuals with disabilities can safeguard their access to essential benefits while managing their finances to support their unique needs.

Both ABLE accounts and Special Needs Trusts offer families engaging in autism financial planning valuable tools to secure their child’s financial future without forfeiting crucial government benefits.

3. Navigate State and Federal Support Options:

State and federal initiatives are crucial in alleviating the financial strain of autism, offering substantial support to families working on autism financial planning. Below are several key support options that can provide relief:

• Medicaid: As a joint state and federal venture, Medicaid extends medical coverage to individuals and families with limited income, proving indispensable for families with children on the autism spectrum. It encompasses an array of medical services, therapies, and medications. Certain states, including Florida, present Medicaid waivers like the Home and Community-Based Services (HCBS), offering further aids such as respite care, behavioral assistance, and in-home services.
• Supplemental Security Income (SSI): The Social Security Administration oversees this program, which supplies financial aid to individuals with disabilities, including minors with autism, who face constraints in income and resources. SSI aims to cover basic living expenses and healthcare needs.
• Individuals with Disabilities Education Act (IDEA): IDEA ensures children with disabilities, encompassing those with autism, access to free and suitable public education. Through this act, autistic children benefit from tailored educational services, therapies, and support facilitated via an Individualized Education Program (IEP) or a 504 plan.
• State Autism Insurance Mandates: Certain states, such as Florida, have enacted legislation like the Senate Bill 2654, or the Florida Autism Insurance Bill (2008), compelling insurance providers to cover crucial autism services like Applied Behavioral Analysis (ABA) therapy for individuals under 18. This mandate helps families secure necessary treatment coverage. For detailed insights into ABA coverage in Florida, you can explore resources like the ABA Centers of Florida guide.
• Respite Care Programs: These programs offer a much-needed pause and deliver both physical and emotional support to caregivers of children with autism. Funded by state agencies or community organizations, they temporarily provide professional care for children, allowing caregivers a moment of reprieve.

For families looking to utilize these supports, reaching out to your state’s Department of Developmental Disabilities, Department of Health and Human Services, or Department of Education is a constructive first step. These entities can offer guidance on accessing resources and understanding eligibility criteria, simplifying the journey through autism financial planning.

4. Assemble a Dedicated Team for Effective Autism Financial Planning:

Embarking on autism financial planning requires not just intention but expert guidance. Engaging with a team of specialized professionals can significantly streamline this process, ensuring your financial strategy is both robust and tailored to meet the unique needs of autism. Below is an overview of key experts who can offer invaluable support:

• Financial Advisors: Skilled in evaluating your financial landscape, these advisors play a pivotal role in formulating investment plans and providing advice on resource management. Their expertise is crucial in optimizing your financial approach to cater specifically to the requirements of autism care and support.
• Special Needs Attorneys: Navigating the legal intricacies related to trusts and benefits for your child can be complex. An attorney specializing in special needs will guide you through establishing trusts and ensuring your child retains eligibility for essential government benefits, thereby safeguarding their future.
• Tax Advisors: Specialized tax advisors have a deep understanding of autism-specific tax considerations. They can help you leverage state resources and understand eligibility for various support systems. Their guidance ensures you can maximize financial benefits while adhering to optimal financial practices.
• Specialized Therapists and Educators: Beyond financial and legal advice, the insights from therapists and educators familiar with autism can illuminate the potential costs and funding avenues related to autism care. They provide practical advice tailored to address your child’s individual needs, promoting their well-being and overall development.

By building a team composed of these professionals, families can confidently navigate the complexities of autism financial planning. This collaborative approach not only secures the necessary financial groundwork but also ensures a comprehensive understanding and application of resources available for autism care and support.