Raising a child in the U.S. comes with a lot of financial responsibilities. With the cost of living at an all-time high, healthcare expenses rising, and college tuition increasing, the financial burden on parents is undeniable. A 2023 LendingTree survey revealed that the overall costs of raising a child in the United States could equate to about $389,000 over 18 years.

Now, imagine if the child in question has special needs. Raising children with disabilities comes with unique financial challenges like specialized medical care, therapy, and more advanced educational support. Families in such situations often need support options, and we’ll discuss the best of them in this article. 

Supplemental Security Income (SSI) 

SSI is a program that provides a monthly payment for people with disabilities and older adults. The scheme is accessible to:

• Adults who are at least 65 years old, blind, or disabled 
• Children living with disabilities have limited resources.

The SSI is administered by the Social Security Administration (SSA), and it comes with as much as $967 monthly benefits for individuals and $1450 for couples. However, your eligible amount sometimes varies based on your income and where you live.

We listed limited resources as one of the eligibility factors for this fund, and what this translates to is that a family’s income must fall below a monthly maximum to be considered for the SSI. The more income you have, the lower the SSI benefit you might be able to get. This scheme aims to support families with financial constraints, so they often receive more support. 

An individual is expected to have resources under $2,000 to be eligible, and $3,000 for couples to be eligible. You might not qualify for the SSI scheme if your resources or assets exceed this limit. It’s also important to note that your state and location also matter when determining how much you’re eligible for. 

For instance, you might get more than the allotted $967 for individuals if you live in a state that provides additional monthly financial assistance. Some locations, like Alaska, Colorado, Minnesota, Texas, and South Dakota, pay and administer supplemental payments. Others, like Arizona, Tennessee, and Mississippi, do not. 

Applying for SSi is easy. You can do this through Social Security. Visit the official website and answer the eligibility questions provided online. The questions should take 5 or 10 minutes to complete, after which you get a response and an appointment date with your local Social Security office.

You can also seek professional platforms and services for some pointers. For instance, a platform like Lighthouse is experienced on SSI for autism, the application process, and other details that can help you navigate this phase easily. 

Special Needs Trust (SNT)

The next thing you should consider is the special needs trust after securing your SSI fund. What this does is to preserve the beneficiary’s eligibility with SSI or other accessible assistance programs. We’ve already established that Social Security funds have income and asset restrictions. The special needs trust allows access to additional support without jeopardizing your position with SSI and others. SNT is a legal arrangement that holds and manages assets on behalf of individuals living with disabilities. Three parties are involved: the grantor who funds the trust, the trustee who manages the trust’s assets and makes distributions, and the beneficiary who receives the benefits from the trust.

SNT can come in three forms:

• First-party SNT: funded with the assets of the person with the disability, often from an inheritance or a personal injury settlement.
• Third-party SNT: Funded by a third party, a parent or grandparent.
• Pooled SNT: a type of SNT where single non-profit organizations manage assets from different disabled beneficiaries.

ABLE (Achieving a Better Life Experience) Accounts

An ABLE account is a tax-advantaged savings account designed for people with disabilities. It allows individuals with special needs (and their families) to save money for disability-related expenses without jeopardizing eligibility for SSI, Medicaid, and other means-tested benefits. The clause to ABLE is that the person must have developed their disability before age 26 (expanded to before age 46 starting in 2026 under the ABLE Age Adjustment Act). The significant advantage of this scheme is that earnings grow tax-free and withdrawals are tax-free as long as they are used for qualified disability expenses.

Other Financial Supports & Programs 

Several other support options exist for families with special needs children, including Medicaid, Medicare, and Social Security disability insurance (SSDI). 

• Medicare and medicaid waivers are publicly funded healthcare coverage for low-income individuals and people with disabilities.
• SSDI: a U.S. federal program that provides monthly cash benefits to people who cannot work due to a disability. Unlike SSI, it’s not need-based; it’s tied to your work history or a parent’s.

Securing Support for Your Child’s Needs

Now that you know the options available, the next line of action is to apply for these programs. You can do this by visiting the official government websites and also talking to a professional. Reach out to specialists, use available guides, and begin planning for your child’s current and future needs.

Disclaimer: This article is for informational purposes only and should not be taken as financial, investment, or legal advice. Readers should conduct their own research and consult with a licensed financial professional before making any decisions.