Becoming a parent is an important moment in anyone’s life. It is also a time when it becomes necessary to review your finances. While raising a child does come with significant costs of its own, caring for a special needs child is even more expensive. There are several additional costs you will have to bear in the form of therapy, medicines, doctor’s appointments and so on,. This can be extremely stressful and requires meticulous planning to be executed well. However, regular financial planning may not suffice when it comes to caring for  a special needs child. So in that case, here are few extra points that you may need to think about while planning your finances, as a parent of a special needs child:

• Draw up a detailed budget:

Planning must start as soon as you become aware of your child’s disability. The first thing you need to do is draw up a detailed budget after including costs that will be incurred on doctor’s appointments, therapy, schooling, medication, etc. You should also be aware of the fact that the costs associated with your child’s care will most likely increase over time. These changes should be considered as early as possible. Continuously reviewing your expenses is integral to making a thorough budget. 

• You must have insurance:

If you are a parent of a special needs child, procuring insurance is non-negotiable. Experts recommend that a life insurance policy of at least 10 times your annual salary, after accounting for all the liabilities, is essential to securing their future in the event of you untimely demise. Insurance must be planned in such a way that , in your absence , the expenses of your child is taken care of till her /his life expectancy .Further, you should also look for health insurance plans that are available for special needs children in particular. This can be extremely helpful, especially in the case of a medical emergency. 

• Set aside an emergency fund:

Apart from your savings, it is essential that you set aside a substantial amount for emergencies. This should primarily be composed of liquid funds and other investments like a fixed deposit, that can be liquidated whenever the need arises. An emergency fund can be extremely handy when you need to make quick cash payments. 

• Get a Financial Plan and Review your plan at regular intervals :

It is extremely critical to identify all your goals including your child’s goals . You are not only planning your goals and expenses till your life expectancy but also you will have to plan for your child’s requirement till his/her life expectancy . It is important to start actioning on your goals . You can get your financial plan prepared by a certified financial planner who will advise you and help you achieve your goals.

• Estate Plan:

Estate planning is an integral part of the financial planning process for parents with a special needs child. Putting money aside by purchasing annuities, pension schemes and other similar investments can help you deal with costs that you need to spend on the care of your child, once you retire. Forming a trust with a trustee you approve of is something that many parents are considering now. Subsequently, writing a will with clear guidelines for execution, is a good way to ensure your child’s well being after your death. A financial advisor is the best person to help you with these long term planning activities.

• Invest in skill building:

Just because your child may have a disability does not mean they cannot have a career. There are several programmes that allow your child to hone their skills, depending on the type of work he/she can manage. Investing in your child’s skills can boost their confidence and allow them to become more autonomous. 

Financial planning for parents with a special needs child can be an extremely complex task. This is especially true, since dealing with disability is a completely new experience. Therefore, it is advisable that you work with a certified financial planner or wealth management firm with ample experience. This will help you reduce a heavy burden on your part, while ensuring that your finances are organised efficiently, so as to secure the well being of your child.