In today’s times when fees of schools are skyrocketing and raising a child needs a lot of planning, raising a child with special needs is even costlier because additional expenditures on medicines, therapies and care is needed. But, things can get easier and stress free if you plan properly or rather ahead of time. Here are few tips to help you plan out the expenses of your child so that you need no face any financial issues in the times of need or emergency.
DECIDE ON A BUDGET – Once you’re aware that your child has a disability is the time you gear up and plan on a budget depending upon factors like the type of disability, life expectancy, needs and earning ability in the future as well as your own income. Start with longer investments and scale down to monthly savings for the same. You may make division of funds depending upon the different needs of the child like school expenses, recreational expenses, therapy and medicines and more. So you get an idea of the approximate monthly expense of your child. While planning do take the inflation rate into account.
HAVE A SEPARATE EMERGENCY FUND – Setting up an emergency fund is also a top priority. This will help you live without stress and have enough money to meet your financial requirements if any expense crops up for the child. This money could be kept in fixed deposits or liquid funds so that liquidising them in times of need is real easy.
INSURANCE IS A MUST HAVE – Insurance needs to be at the top of your list and should be at least 10 times your annual income. Annuity plans are good option to be financially secure when the parents grow old and the child ages too. Investing in health insurance policies for children with special needs is also a good idea.
TRUST FOR THE CHILD – This is a part of a vision plan so that your child can receive all the benefits in case anything happens to the parents. For the same a good idea is to set up a trust and appointing a person who will act for the interest of the child.
INVEST IN YOUR CHILD’S LEARNING – A special child not only has special needs but special skills that can be honed in order to help the child to excel. It’s not just the skills that help the child to shape a career but even basic skills that help the child live a quality life like manages finances, self-care and independence, to name a few.
Special children only have special needs and if they are fulfilled, these children do blossom into beautiful flowers spreading their fragrance all around them.
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*Sourced from the Internet