How to plan financially for children with special needs


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Parents of special needs children must establish financial preparations for the next two generations. They must provide for their personal needs as well as the current and future requirements of their child. Planning is required for the time when they will not be around to provide direction and support.

The cost of raising a child is prohibitively expensive. Raising a special needs child necessitates an even more dedication. It is difficult to plan for the current and future financial demands of the child.

The cost of medication, counselling, specialised care and education must all be considered by parents. They must also consider the significant inflation of healthcare prices. It is also necessary to create a monthly budget that accounts for these expenses. This budget will assist them in developing a financial plan for the child’s future requirements.

Raising special needs children can be difficult, but it can also be extremely rewarding. It is critical to ensure that parents have a happy and meaningful life. They must seek help from friends and relatives who care about them and their children.

Let us take a closer look at the factors to consider while developing a financial plan for your special needs child.

Start early

When it comes to long-term planning, it is vital to begin as soon as the condition is discovered. Most parents take a long time to accept their predicament, and even longer to seek medical help and begin financial planning.

Starting early is critical not just because a greater corpus is required to cover a longer period of time, but also because medical help and education are more expensive.

Aside from medical intervention and special education, all therapy (speech, behavioural, educational, and occupational) are prohibitively expensive.

Therapies can cost up to Rs 1,000 per session, and the frequency can be increased to 3-4 times per week, or even daily for major events. Education expenditures are often exorbitant due to the scarcity of special schools.

Define financial goals

Set specific goals, distinguishing everyday and extremely short-term goals from medium and long-term goals, once you’ve determined the level of financial planning required. Most parents with special needs children are risk-averse and invest all of their money in secure investments such as fixed deposits and regular insurance policies. It is critical to have a percentage of your corpus in equity because it will need to grow if it is to survive for an extended length of time.

It is also critical to have your own home so that your child does not have to rely on others after your death. You may need to renovate or modify the house to accommodate his special medical demands.

Life and health insurance

Given your child’s high level of dependency and expenses, purchase more life insurance by assessing the child’s projected cost of living, caring, and medical bills. The death benefits can also be placed in trust upon your death, providing a tax-free option for your child’s financial requirements.

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