Financial Planning Guide for People with Disabilities


For people living with a disability, financial planning is an essential part of managing life on their own. It allows them the security and peace of mind that their finances can provide for their future needs and goals.

Financial planning includes:

  • Developing a budget
  • Setting up accounts to cover immediate needs and long-term goals
  • Understanding resources available
  • Monitoring income and expenses
  • Strategizing ways to achieve financial independence and more.

Depending on individual needs, some of these tasks may require specialized help from professionals such as financial advisors, tax advisors, or attorneys.

Making informed decisions about money matters can require understanding disability-related laws and entitlements. This guide provides an overview of the tools needed to plan a secure future for those living with disabilities – from identifying sources of income to expanding savings options to protecting assets alongside entitlement benefits.

Benefits of Financial Planning

Financial planning has long been essential to financial security, but it is crucial for people with disabilities. Financial planning can help you set a budget, save for the future, and manage your money more effectively. Effective financial planning gives you more control over your financial future and gives you greater financial security and independence.

Let us explore the benefits of financial planning for people with disabilities in more detail:

Understand Your Rights and Entitlements

Understanding your rights and entitlements under emerging disability laws is essential to developing a sound financial plan. Knowing the various benefits available based on your condition can also save money that could be used for other aspects of planning.

For example, people with disabilities may be eligible for Social Security Disability IncomeSupplemental Security IncomeMedicaid, or other government-funded benefit programs. Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) provide income support to individuals with disabilities who meet specific income, resources, and medical documentation requirements. In addition, most states have disability assistance programs, such as the Medicaid Buy-In program in California, that aids disabled individuals of all ages in obtaining medical care and assistance from a health insurance provider.

Individuals with special needs can also use tax credits to assist people with disabilities and their families. Depending on the individual’s circumstances and state of residence, credits can range from those designed to defray medical expenses related to special education costs for children to the purchase of adaptive equipment for adults. The base eligibility criteria must be met to qualify for these credits; however, some result in direct cash payments or reduced taxable income owed when filing taxes annually.

You must look into all options available as each case is unique and varies by jurisdiction or state law. Working closely with an experienced financial planner skilled in navigating the complexities around disability benefits will help ensure you understand how best to use them as part of an overall financial plan tailored specifically for you.

Plan for Long-term Care and Support

For those who are living with a disability, financial planning can provide major benefits by helping them prepare for unexpected costs associated with their care. In addition, planning financially can help people with disabilities afford the long-term care and support services that may become necessary down the road.

When planning for long-term care, individuals should consider creating a trust—a legally binding document that helps ensure funds are managed according to their wishes, even if they become incapacitated or unable to decide the future. With asset protection trusts, financial resources may be safeguarded from depletion due to long-term care and support needs. Established trusts should also prevent governments from disqualifying an individual’s need for certain aid or services.

Individuals may also opt for particular types of insurance policies that cover certain kinds of extreme medical costs and things like transportation costs and modifications needed at home due to a disability. Additionally, many states and local governments offer independent living initiatives wherein individuals set aside funds to pay for various supports in the future, such as therapy sessions and caregiver assistance.

Individuals may also create an advance directive to ensure finances are managed responsibly over time. This legal document communicates specific instructions about desired medical treatments if an individual cannot make decisions later in life. In addition, it helps family members and healthcare professionals know how an individual with a disability wants healthcare decisions made in their name if they cannot make them independently due to a chronic illness or disability.

For those with disabilities, planning financially can provide great peace of mind—ensuring plans are already in place. Hence, individuals receive the long-term care and support they need when finances become tight, or disability worsens unexpectedly.

Protect Your Assets

Financial planning helps protect your assets. A plan can help ensure your assets and savings stay safe in an emergency, disability, or death. A knowledgeable financial planner can be a great resource to help ensure you have plans to protect your assets and your loved ones’ future financial security.

It is important to create trust-based plans for individuals who are disabled – including guardianship and conservatorship if needed – as well as for people with special needs such as disabilities or long-term medical conditions who receive public benefits such as Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

Many financial planners also specialize in helping disabled people create wills and advance directives, which guide how their finances should be handled if they become incapacitated. Additionally, planners can offer advice about investing, insurance coverages, tax planning strategies, estate planning documents such as the power of attorney forms, and retirement investments specific to people with disabilities.

Creating a Financial Plan

Creating a financial plan is essential in managing your finances and ensuring you can stay on track with your goals. However, people with disabilities may face additional challenges in creating a financial plan due to their income limitations and other issues that may arise.

This guide will focus on helping people with disabilities create a financial plan that works for them:

Set Financial Goals

When creating a financial plan, it is essential to have clear goals in mind. Financial goals can vary from short-term to long-term and should be based on your needs. You can successfully build a financial plan that meets your requirements by properly setting and monitoring your short-term and long-term goals.

You must consider your current age, income level, and lifestyle to set financial goals. Your financial goals will change over time as your circumstances change. Short-Term Goals, such as setting up a budget or working towards establishing credit, often immediately impact your day-to-day finances. In contrast, Long-Term Goals, such as retirement planning, require sustained effort over time to meet their objectives.

The following steps can help individuals create effective personal financial plans:

  • Analyzing income and expenses: Analyze current sources of income, expenses, loans (if any, respectively), and debts owed by monitoring monthly finances throughout the year.
  • Establishing Goals: Allocate income for both short-term (within three years) and long-term (after three years). These should be realistic objectives that are achievable within the pre-determined timeframe.
  • Developing Strategies: Create strategies focused on accomplishing each specific goal. These will serve as short-term or building blocks toward attaining the overall financial objective or outcome desired for each area of focus within the established timeline. Examples include joining disability support groups with local non-profits; setting online accounts where applicable; utilizing tax advantages when applicable; joining professional networks that could benefit you professionally and financially; etc.
  • Implementing Actions: Take actionable steps to reach the desired outcome by strategic execution of plans determined in prior stages while ensuring that they get their intended purpose based upon associated monetary costs/expenses such actions may incur/entail. Examples include actively researching disability laws relevant to each person’s respective profession/state of residence; familiarizing oneself with Social Security rules permitting people with disabilities; cultivating one’s networks both personally & professionally; etc.
  • Monitoring & Reviewing Plans: Monitor & review the ongoing progress made towards meeting all pre-determined objectives while taking corrective actions when necessary, along with tracking related expenses incurred from implementing desired activities throughout the process. Review & adjust plans based upon newly identified areas requiring attention or changes same approach previously adopted may not yield desired results if external parameters influencing original assumptions/scenarios change over time.

Assess Your Financial Situation

Creating a financial plan for people with disabilities will take time and commitment. Before you start, it’s important to assess your financial situation to understand where you stand, what you have available to work with, and what resources are available.

You may want to consider the following steps:

  1. Gather all relevant documents, such as income statements, disability benefits statements, or recent tax returns.
  2. Record your current expenses: housing costs, food and grocery bills, and travel costs, if applicable.
  3. Make a list of any debts you have and their due dates.
  4. Check your credit reports regularly and dispute any discrepancies on them if needed.
  5. Consider establishing a budget based on your income and expenses so that you can plan accordingly for the future.
  6. Review any investments or savings plans you currently have in place.
  7. Look into other sources of income, such as grants or scholarships, available to those with disabilities.

Create a Budget

Creating a budget is an essential first step in financial planning and is key to successful money management. Creating a budget allows you to understand how much money goes out each month, the amount of income coming in, and how best to manage and plan for this “cash flow.” It considers your fixed expenses (rent or mortgage payments, car payments, and insurance premiums) and your variable expenses (lunch out during the week, entertainment costs).

Financial planning also involves setting long-term and short-term goals so that you can plan accordingly. These goals should be realistic—some will be related to healthcare costs or equipment purchases; some may be related to saving for retirement or college funds, and some may involve creative ways to have more monthly disposable income. Knowing the current cost of living and project future expenses is important to identify these goals.

Once the total monthly income is figured, you should subtract all bills that need to be paid: fixed and variable expenses are taken into account, plus any other goals or campaigns, such as saving for a house or planned travel expenditures. Then, using pen and paper, you can create your budget with a spreadsheet program like Excel or a simple list. Once created, managing it can become more accessible by tracking bank accounts online to better control your spending habits outside of bills featuring credit card use or shop-at-home opportunities that are more tempting than remaining within an allotted budgeted item demands.

Develop a Savings Plan

Developing a savings plan is one of the most important steps you can take as you create your financial plan. Saving money has several benefits and should be included in any financial plan. It helps ensure you have access to funds if needed and can provide security, protection, and even peace of mind.

When developing a savings plan, there are a few key steps to follow:

  1. Determine how much money you need to save each month or year. It will depend on your circumstances and what type of lifestyle or goals you want to achieve.
  2. Choose a financial institution for your savings account, such as a bank or credit union, and make sure it’s FDIC insured so your deposits are protected.
  3. Decide if you’d like to open more than one savings account depending on the account types available, such as an IRA or special needs trust fund.
  4. Determine the best interest rate option for you and how frequently interest will be compounded (quarterly, yearly). Also, consider any fees associated with setting up an account or making deposits and withdrawals before choosing an institution for your savings needs.
  5. Fix the amount that is regularly transferred from your checking to your savings accounts at certain times so that it becomes part of your budgeting routine instead of something that only takes place by chance, ensuring you reach your desired level of saving earlier than originally expected.

Invest Wisely

When creating a financial plan, it’s important to consider the market’s ever-changing nature and prepare for any eventuality. Your spending and savings habits should be tailored to your particular circumstances.

Investing money can be an effective way to grow your wealth over time. However, investing wisely involves carefully considering factors such as stock performance, portfolio diversification, long-term goals, and risk management. In addition, those with disabilities need reliable, professional guidance when considering investments since their income may fluctuate due to health or other situations.

Some tax benefits may also be available for those with disabilities seeking outside professional investment advice or services. For example, a qualified financial adviser can help you look at all facets of investing and make informed decisions about the best approach for your situation, including understanding what accounts or types of investments require additional paperwork or specialized filings (i.e., a trust account).

It is essential to review your investment portfolio regularly and make necessary adjustments based on changes in the market while keeping in mind the goals you set at the start of your plan. Additionally, remember that everyone’s financial situation must be considered individually, and all programming should serve its established purpose – safety, security, and growth. Combining knowledge gained from experience with good advice from professionals can help you smoothly manage and protect your finances throughout life’s journey with a disability.

Plan for Tax Benefits

Your created financial plan should consider potential tax benefits, as reducing taxes can help make disability-related expenses more affordable. Depending on your situation, you may be able to take advantage of tax credits or deductions, such as the Earned Income Tax Credit (EITC) or Disabled Access Credit (DAC). Additionally, certain types of medical technology may qualify for special tax considerations. Researching and talking to an experienced tax advisor about all available tax benefits you may be qualified for is essential.

Most people with disabilities have access to the same education and retirement savings plans as those without disabilities; however, there are some additional incentive programs that you should keep in mind when creating your financial plan. For example, the ABLE Act allows individuals with disabilities and their families to set up secure savings accounts called ABLE accounts, from which money can be withdrawn tax-free while still allowing individuals to maintain government benefits they may qualify for, such as Social Security and Medicaid. Furthermore, funds saved in an ABLE account do not count against means-tested benefits. Funds held in an ABLE Account will not be considered available resources when calculating eligibility for other need-based assistance programs like Supplemental Security Income and Medicaid.

A well-thought-out financial plan can help ensure both long and short-term stability: having a plan in place can help provide certainty and peace of mind during times of uncertainty or transition due to the nature of living with a disability. Talk with an experienced financial planner familiar with developing special needs trusts to understand which portions of your overall financial planning are most suitable for your future goals– don’t wait until it’s too late!


When it comes to financial planning, there are numerous resources available to people with disabilities. These resources can range from government benefits to individual programs and initiatives. This guide will provide information on the various resources available to people with disabilities so that they can make informed decisions about their finances.

Government Benefits

Government benefits are an important resource for people with disabilities. Disability benefits from the federal and state governments may provide financial assistance, health care coverage, and other forms of support. This section includes detailed information about available government benefits for people with disabilities.

The U.S. Social Security Administration provides disability benefits to those deemed medically eligible under the Social Security act. It includes such programs as Supplemental Security Income (SSI)Social Security Disability Insurance (SSDI), and Medicare or Medicaid, depending on the applicant’s eligibility requirements. In addition, these programs may provide various types of financial assistance, including cash payments, health care coverage, assistive technology devices, job training assistance, housing support services, residential assistance services, and more. Therefore, understanding each program in detail is essential to decide if you are eligible and how to apply.

State governments may also provide various disability-related resources depending on the region and state laws governing disability benefits; it’s important to research what local resources are available before applying for federal programs or services outside your region or area. Programs provided by state governments can include any of the following:

  • Housing assistance programs
  • Vocational Rehabilitation Services
  • Financial Assistance/Social Insurance Programs
  • Employment accommodations/protected leave policies
  • Residential assisted living facilities
  • Respite care services
  • Transportation access initiatives for individuals with disabilities
  • Subsidized guardianship opportunities for legal protection in some cases
  • Specialized case management in certain areas
  • Occupational aids loaner banks or other assistive technology funding initiatives

Each program has specific qualifications an applicant must meet, so it’s good to do your due diligence before committing to any one program or service provider in your area that offer support tailored specifically for people with disabilities in their regions.

Financial Planning Services

Financial planning services exclusively for people with disabilities have become increasingly available. Various organizations offer professional advice and financial guidance tailored to the needs of people with disabilities and their families. It may include information on securing government benefits, access programs for employment for people with disabilities, secure housing options, health care costs, and strategies for obtaining financial independence.

Additionally, many financial planning firms specialize in providing services designed to help individuals with disabilities and their families plan for a stable financial future. These firms typically assist clients in areas such as:

  • Estate planning
  • Tax arrangements
  • Social Security disability benefits
  • Medicaid/Medicare eligibility criteria
  • Guardianship issues
  • Direct support services

To find a list of local organizations offering disability-specific financial planning resources or support services, visit your state’s department of social service website or contact local education or rehabilitation offices. Additionally, various online resources provide information about disability-related financial planning topics, including, which offers an up-to-date listing of national and state resources provided by multiple entities to assist those with disabilities.

Financial Education Programs

Financial education programs are designed to help those with disabilities to understand their rights and the topics related to managing their finances. These programs provide individuals with information about government benefits, resources for budgeting and savings, insurance options, and credit-building tips. Financial governments certify financial educators to create courses that meet specific educational objectives. Many of these courses are accessible online or through in-person events such as workshops and webinars.

One example of a financial education program is the National Financial Educators Council (NFEC) which offers a variety of educational products geared toward providing financial literacy instruction for people with disabilities and special needs. The NFEC has created specialized curriculums for each of the five disability categories defined by the Social Security Administration (SSA); physical disability, sensory disability, mental disability, intellectual disability, acquired brain injury, and traumatic brain injury.

There are dozens of NFEC-accredited financial educators currently providing comprehensive curriculums in both digital format and traditional classroom settings to give people with disabilities resources that can have an immediate impact on their lives throughout various stages of life’s journey from applying for benefits to setting meaningful short-term goals such as creating budgeting habits through long-term planning like proper investment strategies respective to each individual’s unique situations. By investing in education now, you can ensure a secure future later on down the road.


When it comes to financial planning for people with disabilities, it is essential to understand the variety of available tools and resources and how to access them. Thinking about current needs and longer-term goals and scenarios is also critical. Working with a professional planner or financial advisor can be extremely valuable in helping you create a plan that fits your specific needs.

At the most basic level, having a budget, savings plan, and insurance coverage will form the foundation of your financial future because they help protect you against unexpected expenses while creating stability. Additionally, understanding government programs such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) may offer assistance in saving for retirement or medical expenses. Finally, talking with an expert about available benefits can clarify how to make the most of your money over time.

The key is to stay organized, establish priorities and set short-term goals that will lead you toward long-term financial stability. Once those basics are in place, it’s easier to focus on creating wealth through investment strategies like IRAs or 401(k) plans and additional planning for estate management or charitable giving desires. With thorough research and help from knowledgeable professionals, you’ll soon find yourself confidently on the road towards achieving your financial goals—regardless of disability status!

Frequently Asked Questions

What is financial planning?

Financial planning is setting and achieving financial goals through properly managing finances. It involves creating a budget, saving, investing, and managing debt.

Why do people with disabilities need a financial plan?

People with disabilities often face unique financial challenges, including higher healthcare costs, reduced income, and difficulty finding employment. A financial plan can help them navigate these challenges and achieve their goals.

What are some financial goals people with disabilities can set?

Financial goals for people with disabilities include:

  • Building an emergency fund.
  • Paying off debt.
  • Saving for retirement.
  • Creating a budget to manage daily expenses.

How can someone with a disability increase their income?

There are many ways for people with disabilities to increase their income, including finding flexible employment opportunities, accessing disability benefits, and starting a business or freelancing.

Where can people with disabilities find financial planning resources?

Many resources are available for people with disabilities to help with financial planning, including non-profit organizations, government agencies, and financial planning firms specializing in serving individuals with disabilities.

How can someone with a disability start a financial plan?

To start a financial plan, individuals with disabilities should begin by setting financial goals and creating a budget. They should also consider seeking the help of a financial planner who specializes in serving people with disabilities.

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