A roadmap for financial success

What you need is a roadmap to show you how to successfully manage the money you have and make the most of every dollar. As a certified financial education instructor and parent of an autistic son, I will show you how! I’ve been on this journey myself, and my husband and I have learned how to budget effectively, paid off debt, invested and taken advantage of financial resources available to our son to help pay for his autism services and care.

It isn’t easy, but if you are intentional and apply the learnings from this book, you can make the most of your dollars and be more successful with your family finances, even while dealing with the realities of autism and its related expenses.

What “Autism and Your Family Finances” offers you

I am a big believer that every person can learn to manage money to their best of their abilities (including our autistic children). “Autism and Your Family Finances” covers many topics that are important to parents of autistic children, including:

• Part I: Financial Foundation
  • Chapter 1: The Financial Burden of Autism
  • Chapter 2: Understanding and Improving Your Money Mindset
  • Chapter 3: Creating a Financial Foundation with Insurance
  • Chapter 4: Navigating the Health Care System
  • Chapter 5: Ensuring You Can Cover Emergencies
• Part II: Everyday Finances
  • Chapter 6: Using a Household Budget
  • Chapter 7: Paying Off Debt
  • Chapter 8: Investing
  • Chapter 9: Finding and Applying for Autism Grants
• Part III: Planning for the Future
  • Chapter 10: Estate Planning
  • Chapter 11: Income for Child
  • Chapter 12: Guardianship vs. Supported-Decision Making
  • Chapter 13: Housing and Independent Living
  • Chapter 14: Preparing Your Child for College, Post Secondary Education or Work
• Bonus Chapter 1: 28 quick money tips to help you make the most of every dollar
• Bonus Chapter 2: Establish these 6 daily financial habits to make the most of your money
• Bonus Chapter 3: Financial Goals Guide

How can you purchase “Autism and Your Family Finances”?

“Autism and Your Family Finances” is available from Amazon Kindle. Don’t have a Kindle reading device? No worries – you can download the Kindle app to your computer, tablet or phone and read the book on your device!

You can purchase the eBook via this Amazon link (affiliate link).

The post <strong>“Autism and Your Family Finances” can help you take control of your money, build wealth and secure your child’s future</strong> appeared first on Autism & ADHD Connection.

As a reminder, we are using the book ““I Want More Pizza: Real World Money Skills For High School, College, And Beyond” (affiliate link) by Steve Burkholder for these lessons. Steve is a certified public accountant and has worked in the finance department in higher education. He has a passion for teaching teens and young adults about personal finance, and I found his book a few years ago when looking for a good resource for J, my son with autism and ADHD, to learn about money.

Lesson #6: Understanding Debt

Read the “4th Slice” (pages 65-76) of “I Want More Pizza” (affiliate link) with your teenager. I found it is best to let your teen read it on their own before the lesson. You can read it aloud together, but you may want to break it up into two sessions.

Debt takeaways to share with your autistic teen

• Debt is when you borrow money from a bank, family member, friend or any other organization or person. It is also referred to as a loan or credit.
• Debt comes with two risks:
  • The first is that you have pay interest on the amount of money borrowed as you pay it back.
  • The second is that you risk overspending, or spending above your means. (Meaning you consistently spend more money than you have in cash. This is generally called living beyond your means.)
• Too many people make bad decisions with debt, especially credit cards.
• Credit cards can be a convenient way to pay for stuff and track your expenses, however, you have to pay the full balance every month. If you are responsible with a credit card that has a low balance limit, it can be a good way to build credit.
• Paying for stuff with a credit card and then not paying the full balance due each month can be a financial disaster for many people. That is because the interest on credit cards is very high! (Steve provides a great real-world example on page 69 – be sure to study the chart.) Paying only the minimum due each month leads to your debt building and paying potentially thousands dollars more in interest payments.
• Debt can be good if you have a mortgage to pay for a home. At reasonable amounts and interest rates, student loans can be helpful in paying for a college education. (Although you should try for as many scholarships and other types of financial assistance before resorting to student loans. Even then, using savings and having a part-time job to cover as much as the cost as possible is preferable!)

Debt and credit discussion tips with your autistic teen

• Talk about how to use a credit card responsibly. Ask your teen how they could manage their credit card usage to avoid building up debt.
• Discuss the risks of debt and why it’s best to avoid it as much as they can by saving up for purchases and looking for other ways to pay for something (e.g., scholarships for college instead of a student loan).
• If your teen is planning for college, make a plan to search and apply for scholarships on a regular basis during their junior and senior years. Did you know there are college scholarships specifically for students with autism? The CollegScholarships.org website is a good place to start. Also, some autism grants also aid with college costs. Be sure to research local scholarship opportunities as well.

Practical Money Activity

Use this credit card payoff calculator from Bankrate to find out how long it would take to eliminate different credit card balances.

The post Kids Money Skills, Lesson 6: Help your autistic teen understand debt and its potential for negative consequences appeared first on Autism & ADHD Connection.

As a reminder, we are using the book “I Want More Pizza: Real World Money Skills For High School, College, And Beyond” (affiliate link) by Steve Burkholder for these lessons. Steve is a certified public accountant and has worked in the finance department in higher education. He has a passion for teaching teens and young adults about personal finance. I found his book a few years ago when looking for a good resource for J, my son with autism and ADHD, to learn about money.

Check out the first four lessons of this series:

Kids Money Skills, Lesson 1: Why autistic teens should learn about personal finance

Kids Money Skills, Lesson 2: Encourage a positive money mindset in your autistic teen

Kids Money Skills, Lesson 3: Teach your autistic teen how to set money goals and prioritize their spending

Kids Money Skills, Lesson 4: Learning how to budget and save sets your autistic teen up for future financial success

Lesson #5: The importance of compound interest

Read the “3^rd Slice” (pages 43-59) of “I Want More Pizza” (affiliate link) with your teenager. This section is quite long. I found it is best to let your teen read it on their own before the lesson.

Savings and Investments Basics for your teen

• There are several basic investments that can be used to save or invest money. They include:
  • Savings account – an account at a bank, credit union or brokerage firm where you can deposit money and earn a little bit of interest each month.
  • Certificate of Deposit (CD) – an account that is similar to a savings account, but you let the bank keep your money for a certain number of months. CDs pay a higher interest rate than a savings account.
  • U.S treasury bonds – bonds enable you to loan the U.S. government an amount of money for a certain length of time. The government pays you interest for the loan. (Businesses do this too with bonds that you can purchase individually or through bond mutual funds.)
  • Stocks – these are individual shares of a company that you can buy. Stocks are the riskiest of the investments. Yet, they also bring the greatest reward and can grow your money the most. Depending on what type of stock you purchase, your risk may be moderate to high.
  • Mutual funds – these are “portfolios” of stocks or bonds that you can purchase and are professionally managed by a financial expert. Because the fund has a variety of stocks, bonds or other types of investments, they are called “diversified.” This means that many mutual funds are less risky overall than purchasing individual stocks.

Takeaways to share with your teen

• These accounts grow your money because the bank (or mutual fund company, government, etc.) pays you interest for giving them access to your money. Interest in the amount of money they pay you each month. They usually give you a percentage they will pay you, called an interest rate.
• Savings and investment accounts come with different levels of risk. The safest are savings accounts, which are federally protected and insured up to $250,000 per depositor per insured bank. That means that if something bad happens to a bank, your money is backed by the government for this amount. CDs and bonds are then the next less risky, with mutual funds and stocks being riskiest.
• Investing in stock and mutual funds may sound scary, but the rewards are worth the risk to grow your money over time. The important thing is to learn to manage your risk. Putting all your money in one stock is the riskiest investment you can make. However, if you spread your money out over different stocks, mutual funds, bonds, CDs and savings accounts, you diversify your investments and reduce your overall risk while achieving a greater reward of growth for your money.
• Investing your money long term will grow it over time through “magic” called compound interest. Investopedia defines compound interest as “the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.” That means that over time, you are earning money on the original amount you invested but also the additional money that accumulates from more money you deposit plus all the interest you earn over time. (See the tables that Steve shares on pages 53 -55.)
• As Steve notes, compound interest is your BFF when it comes to growing your money!
• The younger you begin to save and invest, the more time your money has to grow and the more wealth you will build throughout your life!

Savings discussion tips with your teen

• What are your feelings about risk when it comes to money? Does risking your money for reward and growth scare or excite you? Try this risk calculator to help you determine your level of risk tolerance.
• How can you best manage your risk for your savings and investing?
• Do you understand compound interest? How can it help you build your money over time?

Practical Money Activity

Use this online calculator from Nerd Wallet to see how money grows through the magic of compound interest!

The post Kids Money Skills, Lesson 5: Teach your autistic teen the importance of compound interest to grow their savings appeared first on Autism & ADHD Connection.

As a reminder, we are using the book “I Want More Pizza: Real World Money Skills For High School, College, And Beyond” (affiliate link) by Steve Burkholder for these lessons. Steve is a certified public accountant and has worked in the finance department in higher education. He has a passion for teaching teens and young adults about personal finance, and I found his book a few years ago when looking for a good resource for J, my son with autism and ADHD, to learn about money.

Check out the first three lessons of this series:

Kids Money Skills, Lesson 1: Why autistic teens should learn about personal finance

Kids Money Skills, Lesson 2: Encourage a positive money mindset in your autistic teen

Kids Money Skills, Lesson 3: Teach your autistic teen how to set money goals and prioritize their spending

Lesson #4: Basic budgeting and the importance of savings

Read the “2^nd Slice” (pages 27-37) of “I Want More Pizza” (affiliate link) with your teenager. This section is quite long, so I found out it is best to let your teen read it on their own before the lesson.

Saving and budget takeaways to share with your autistic teen

• The opening quote from Warren Buffet really sums it up: “Do not save what is left after spending, but spend what is left after saving. If you buy things you do not need, soon you will have to sell the things you need.”
• It is important to understand the reasons to save money. Sometimes, people save money in one area to buy something nicer in another area. Saving money for unexpected expenses is always smart. In addition, saving to grow your money over time is what leads to secure finances and the ability to build wealth in retirement accounts, save for college, put a down payment on a house or be able to take your dream vacation one day.
• Everyone can save money, no matter how much they make. It may be just $1 to start, but every little bit grows over time. When teenagers first begin working, they don’t make much money. However, it’s important to put a little money away in a savings account from each paycheck to put toward savings goals.
• One easy way to save is to do it automatically, or what Steve refers to as an “auto-saver.” Your teen will need two bank accounts – a savings account and checking account. Once they are earning a consistent income from jobs (e.g., part-time job, lawn mowing, babysitting, etc.), then they can set up an automatic transfer from their checking to their savings account once a month. This allows them to save automatically instead of making the manual transfer every month.
• It’s important to know how we spend each dollar, so tracking expenses is really important. Your teen can write down the money they’ve spent in a small notebook or use a budgeting app like You Need a Budget (referral link), which is my favorite and what my boys will use once they have a regular part-time job.
• Once your teen has been tracking expenses for a month or so, they will see that small purchases really add up and make better decisions on how they want to spend their money. They can then make their first budget!

Discussion tips with your teen

• Discuss why it is so important to have savings and how you would worry about paying for unexpected expenses or being able to afford something if you didn’t have any savings.
• Talk about checking and savings accounts and their unique functions. Then discuss how your teen can set up an auto-saver for their money. That could be done either now or in the future when they have a regular part-time job and income). How much money could they start saving each month? Even $5 or $10 will add up over time.
• How does your teen spend their money? Discuss how small purchases really add up and whether they are moving them toward or away from their savings goals.
• Plan a time for Lesson 5.

Practical Money Activity

Find a small notebook (or purchase one if necessary) and have your teen write down their expenses for a month. They will have a better understand of how they are spending their money. Then your autistic teen can develop their first budget based on their learning.

The post Kids Money Skills, Lesson 4: Learning how to budget and save sets your autistic teen up for future financial success appeared first on Autism & ADHD Connection.

As a reminder, we are using the book I Want More Pizza: Real World Money Skills For High School, College, And Beyond (affiliate link) by Steve Burkholder. Steve is a certified public accountant and has worked in the finance department in higher education. He has a passion for teaching teens and young adults about personal finance, and I found his book a few years ago when looking for a good resource for autistic son J.

Lesson #3: Setting money goals and prioritizing spending

Read Slice #1 (pages 15-21) of I Want More Pizza (affiliate link) with your teenager (either out loud or individually before the lesson).

Takeaways to share with your teen

• Steve underscores the importance of people, especially teenagers, understanding personal finance.
• He discusses the importance of determining what your money goals are so that you know what you are working toward.
• Prioritization of your expenses is key to understanding how you spend your money. This helps you make mindful decisions about what you will spend per month on different items. This is called budgeting.
  • He gives a great example of saving for a new digital tablet. If you choose not to spend $5 on coffee five times per month and instead drink coffee from home, then you can save $25 per month toward your tablet. Then that $25 per month will add up over time. That allows you to achieve your goal of buying a new tablet.

Discussion money tips with your autistic teen

• Show them the prioritized list on page 10 and talk about what their priorities are for saving, spending and giving. What would be important to them? How would they prioritize their own lists?
• Do the practical money activity below and ask your teen to determine their own money goals.
• Plan a time for Lesson 4.

Practical Money Activity

Ask your teen to determine their top three money goals. Give them a sheet of paper and have them write them down. Do they want to save for a car or find ways to help save for their college? Do they want to be able to pay for their own clothes or start a Roth individual retirement account (IRA) with some money from their part-time job?

The post Kids Money Skills, Lesson 3: Teach your autistic teen how to set money goals and prioritize their spending appeared first on Autism & ADHD Connection.

As a reminder, we are using the book I Want More Pizza: Real World Money Skills For High School, College, And Beyond  (affiliate link) by Steve Burkholder. Steve is a certified public accountant and has worked in the finance department in higher education. He has a passion for teaching teens and young adults about personal finance, and I found his book a few years ago when looking for a good resource for my autistic teen J to learn about money.

If you missed Kids Money Skills, Lesson 1, you could always start with it first and come back to this second lesson.

Lesson #2: Helping your autistic teen develop a positive money mindset

Read the introduction (pages 5-12) of I Want More Pizza (affiliate link) with your teenager (either out loud or individually before the lesson).

Takeaways to share with your teen

• Earning money through babysitting, lawn mowing, or part-time jobs is great, but you need to learn how to make the most of that money.
• One of things you’ll learn in these lessons is the importance of saving money and seeing how it can grow over time. Steve provides a good example. If you save $25 each month, then that is $300 per year. If you continue to do that for 40 years, you will have $12,000. And that is without something called compound interest that would make it grow even more! (Don’t worry – we will talk about that later.)
• It’s important to understand that personal finance is “a set of tools that make it easier for you to keep your hard-earned money and to make it grow as quickly as possible.”
• Even though personal finance provides tools, money is emotional. So understanding your emotions and being able to overcome mental blocks can help you have a better relationship with money and make it work for you.
  • Many people deal with money stress. Steve notes about 70 percent of Americans indicate they are stressed about money (according to the American Psychological Association.)
  • Many people talk negatively to themselves and others about money. They put up blocks like “I don’t make enough money for that,” “I’m young: I’ll do it later,” and “I can’t understand it.”
  • Increasing your knowledge about finance will help you have a positive money mindset and avoid the excuses that are mental blocks.

Discussion tips about money with your autistic teen

• Ask them what worries they have about money now and how do they think those cause mental blocks.
• Talk about your own money mindset and how you’ve had to overcome your own mental blocks when it came to money – even if you are still working on it!
• Ask your teen to describe what they think a positive money mindset is and what they can do to have this type of mindset.
• Plan a time for Lesson 3.

Practical Money Activity: Practice giving back change

Being able to count change is a practical money skill that not only will help your autistic teen with their own money but also a valuable skill for when they begin a part-time job. Many jobs that our teens have during high school and even college include accepting payment for services. When cash is paid, then they need to know how to calculate and provide change back to the customer!

For this activity, you will need:

• A calculator
• Small bills such as $1 and $5
• Coins (whatever you have on hand. We have a coin jar, so I use that.)

This activity is simple:

• Separate the coins into piles of pennies, nickels, dimes and quarters.
• Provide your teen with a few dollar bills.
• Give your teen a price that something costs that you are “paying” for and give them some cash. (For example, I’m “buying” something for $2.63, and I hand my son a $5 bill.)
• Have them use the calculator to determine how much change you are owed and then have them count out the change to give back to you.
• Repeat several times with different amounts to allow them to practice calculating and giving back change.

The post Kids Money Skills, Lesson 2: Encourage a positive money mindset in your autistic teen appeared first on Autism & ADHD Connection.

Therefore, I’m going to share the financial literacy lessons that I’ve been teaching my own teenagers, including my son J who has autism and ADHD.

We are using the book “I Want More Pizza” (affiliate link) by Steve Burkholder. Steve is a certified public accountant and has worked in the finance department in higher education. He has a passion for teaching teens and young adults about personal finance. I found his book a few years ago when looking for a good resource for J to learn about money.

Lesson #1: Why autistic teens should learn about money

Autism is a spectrum, so our teens will have variable abilities and capabilities to manage money. However, I am a big believer in teaching children and teenagers to handle their personal finances to the best of their abilities. The more they can learn about money, the more independent they can be.

This is a great place to start with many autistic teens (or any teenagers or older children really) to teach them about money. See the lesson below.

Read the preface of “I Want More Pizza” (affiliate link) with your teenager

Takeaways to share with your teen:

• Steve shares his personal story. He talked about working part-time jobs in high school and college. He shared how his mom opened a “Christmas” savings account for him. He was required to save half of the money he made in his savings account.
• Saving half his money taught him the importance of saving money, and he managed to accumulate $5,000 in his account by the end of high school.
• Steve shares he was looking for ways to earn more money. Unfortunately, he made the mistake of investing in the stock market without understanding it or how to properly choose which stocks to invest.
• He discusses how everyone faces financial difficulties. It could be credit card debt, student loans, low income from low-paying jobs or other money problems.
• His hope is that by reading his book, teens and young adults will learn about personal finance and not make as many mistakes with money.

Money discussion tips with your autistic teen:

• Share your personal finance story with your teen. Talk about the types of jobs you had when you were younger. Discuss how you learned about money. You may even confess if you still have a lot to learn, and you both can learn together!
• If your teen has a savings account, take it out and discuss the purpose of it, the current balance and how to increase their savings.
• Ask your teen what they hope to learn most about money.
• Plan a time for Lesson 2.

The post Kids Money Skills, Lesson 1: Why autistic teens should learn about personal finance appeared first on Autism & ADHD Connection.

Is my autistic child eligible for Supplemental Security Income (SSI)?

The Social Security Administration has strict eligibility requirements for SSI payments. Those requirements cover both income levels and severity of the disability. SSA considers the family’s income when the child lives with their family. It is also considers it if they live elsewhere but return home intermittently (e.g., they go away for school).

As of 2022 (income requirements change annually), children may be eligible if:

• The child or teen (not blind) is not working and not earning more than $1,350 per month. If the child or teen is blind, they must not be working and not earning more than $2,260 per month.
• The child’s medical condition or combination of medical conditions must result in “marked and substantial limitations.” In other words, the medical condition(s) must severely limit your child’s abilities and activities.
• The conditions must have resulted in disability for the previous 12 months or expected to be disabling for at least 12 months, or the disabilities are expected to result in death.

While these are some general eligibility requirements, SSA provides much more detail on their website at the link above. This includes household income limits and other information that you will want to review before determining if your child may be eligible.

How do I apply for SSI for my child?

How do I apply for SSI for my child?

If you believe your autistic child may be eligible for SSI from the Social Security Administration, then you will need to submit a Child Disability Report through their website. They also make a SSI disability child starter kit available. This can help you gather the information you will need for the submission.

A representative from SSA will call you within a few days after you’ve submitted the report to discuss whether or not your child is eligible and can continue with the application process.

What type of information does SSA review during the application process? It can include:

• Your child’s medical records
• School records
• Interviews with doctors, teachers and other professionals who work with your child and can attest to their medical condition
• Interview with you, the parent

How long does the application process take?

According to SSA’s web page, the eligibility determination can take up to three to five months, and this is completed through your state’s agency.

If your child has a severe disability and is in need of payments, they may make them immediately for up to six months. According to SSA’s “Benefits for Children with Disabilities” guide, some of those could include:

• A child with total blindness or total deafness
• Children with Down Syndrome, Cerebral Palsy or Muscular Dystrophy
• Children with severe intellectual disabilities (diagnosed after age 4)
• A child with a symptomatic HIV infection
• A child with a birth weight under 2 pounds, 10 ounces and failure to thrive as infants and toddlers.

If your state’s agency decides that your child’s condition is not severe enough, the SSA notes that you would not have to pay back the payments you already received. (Double check this with your SSA contact in case this changes in the future.)

Ongoing eligibility reviews

If eligible, your child will have ongoing reviews to determine if there is any changes in their medical condition or income that affects your child’s eligibility.

Currently, the Social Security Administration will re-evaluate your autistic child’s disability at least every three years before age 18. This is especially true for those children whose autism may improve over time.

Once your child turns 18 years old, then they will be evaluated according to the adult with disabilities criteria to determine if they will continue to receive Social Security Disability Insurance (SSDI) payments as adults.

Is applying for Social Security Income for my autistic child worth it?

If your child has severe autism and your income is limited, looking into Social Security Income for your child is worth the time to research it. Parents of autistic children can really struggle financially to provide the care and services their children need. If you are having a hard time affording care for your child, looking into SSI is a good option.

If you have more questions about Social Security benefits for disabled children, check out this page from SSA that has some links to additional information.

The post Does your autistic child qualify for Social Security Income? appeared first on Autism & ADHD Connection.

What is an ABLE account?

ABLE means Achieving a Better Life Experience. The U.S. Congress passed a law in 2014 that created them. ABLE accounts are tax-advantaged investment accounts. They allow someone with a disability or an authorized individual (parent, guardian or appointed individual through a power of attorney) to pay for living expenses that are outside of the government assistance they receive. It helps those who are disabled have a higher quality of life because if they are receiving government benefits, then they are limited to having only $2,000 in financial assets.

Who qualifies for the account?

ABLE accounts have some specific qualifications. They include:

• Onset of their disability or blindness before age 26.
• Receives Social Security Income (SSI) or Social Security Disability Insurance (SSDI).
• If does not receive SSI or SSDI, has a doctor’s diagnosis of significant functional impairment.

What if your child doesn’t receive SSI now? Does that mean you cannot set up an ABLE account when they are an adult? If they qualify for SSDI as an adult, then you would be able to set up an account for them then. You would not be able to establish an account for your child before then though.

How are ABLE accounts managed and used?

An ABLE account is established through your state’s program. However, if you like another state’s ABLE plan investment options, some states allow out-of-state residents to open an account through their program.

You can choose from a variety of different saving and investment options for the ABLE account. These can be conservative to aggressive depending on how your child wants to use their account. There is a limit of $15,000 for annual contributions. However, if the person is receiving SSI, they have a limit of $100,000 total. Anyone can contribute to the account. In fact, if your adult child works a part-time job, their earnings can be put into the ABLE account (up to the annual limit).

Money in ABLE accounts can be used for a wide variety of qualified expenses. Those can be connected to medical expenses for the disability not covered by Medicaid. It also can be an expense that improves health, wellness or quality of life. The expense isn’t required to be a medical necessity. ABLE beneficiaries can use their money in a lot of ways. They can pay for education, save for a down payment on a home, purchase medical equipment and more.

Can you roll a 529 for education into an ABLE account?

In 2018, Congress passed the ABLE Financial Planning Act. This allows up to $15,000 to be rolled over from a 529 college saving account to an ABLE account without penalties. However, tax and legal experts advise against this in most cases. That is because 529 college savings accounts have a waiver of the 10 percent penalty if the beneficiary is disabled, and the money is still used for that person.

This is complex, so you should probably talk to a tax or special needs legal expert to understand more about 529 college savings plan and how you can still use that money for your child. Here is an article from the Special Needs Alliance that explains some of this complexity.

How to set up an ABLE account

If your child qualifies for an ABLE account, you can check out your state’s and other state’s programs to choose the best one for your child. Many states offer state income tax deductions if you choose the program for the state where you live. You will open the account online, and here is a resource to help you with enrollment in a program, including a state-by-state comparison tool.

Still have a lot of questions about ABLE accounts? The ABLE National Resource Center has an extensive list of frequently asked questions and answers that can help.

For more personalized help, talk to your tax expert or special needs attorney about if an ABLE account would be a good financial tool for your child as an adult.

Have you established an ABLE account for your autistic young adult? What was the experience like, and do you have tips for other parents? Leave a comment so that we can share and encourage each other along this journey?

The post What is an ABLE account and can you establish one for your autistic child? appeared first on Autism & ADHD Connection.

If you have an autistic child, you too should have a medical sinking fund as a category in your budget. It will help pay for your part of your health insurance deductible, co-pays, coinsurance and fees that aren’t covered by insurance.

What is a sinking fund?

Sinking funds cover certain expenses that occur regularly but are not the same every month. Think about quarterly insurance payments, digital annual subscriptions, home improvements and gifts for the holidays. While these aren’t monthly expenses, you still need to account for them each month so that your budget isn’t sidelined when the bills come due.

Medical expenses may indeed come monthly for a family with an autistic child. Yet, those expenses aren’t the same usually every month. They come sporadically as medical bills make their way through insurance processes or when services occur.

Why do I need a medical sinking fund?

It is important to have a robust medical sinking fund when you have a child with autism and ADHD because medical bills are one of the ways that families are financially impacted by autism.

Having a medical sinking fund can ensure that you can pay medical bills when they arrive. Expenses generally vary month-to-month for most of us who have autistic children. One month may be light with a couple of co-pays and some over-the-counter medicines. Other months can be heavy in expenses. That can include the time period when you have to pay higher out-of-pocket amounts until you reach your deductible. (And be sure the provider is submitting all claims to your insurance to ensure every dollar counts toward that deductible!)

How do I find the money for a sinking fund?

So how can you build up a medical sinking fund? For me, I have a medical category in my monthly budget. I have a designated amount that I put into for each paycheck. I know expenses are going to be much higher in the early part of the year as we are paying our part of the insurance deductible. Then, it will be lower usually in the second half of the year. I don’t vary the amount – I put in the same amount knowing it will balance out over time.

In addition, I receive an annual bonus from my day job. One of our line items for our bonus spending plan is always to add to the medical sinking fund.

How can you find ways to boost your sinking fund?

• Make sure your medical sinking fund is a category in your monthly budget and ensure you are putting a good amount into it from each paycheck.
• Use a portion of any bonuses, tax returns, gifts, rebates or any other windfall money for your medical sinking fund.
• Sell unused items and put the money in this sinking fund. You can post “for sale” notices on your local Facebook Marketplace, E-bay, Craigslist, Next Door or other online marketplaces.
• If you have major expenses that you cannot manage on your own, consider crowdsourcing. You can use GoFundMe, MedGift or JustGiving. See this guide from MedGift for ideas about how to do this.

Do you have a medical sinking fund? What other helpful tips do you have for boosting it? Leave a comment so that we can share and encourage each other on this journey.

The post Medical sinking fund can help your finances when you have an autistic child appeared first on Autism & ADHD Connection.