Financial Planning Tips For Parents With Special Needs Children

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An estimate of one out of seven or around 5.1 million Filipino children are living with disabilities, according to Philhealth.

In the Philippines, raising a child with disability is 40% to 80% more expensive depending on the severity of the disability, according to a study on the “Cost of Raising Children with Disabilities in the Philippines”.

According to the study, sources of extra costs were associated with health expenditures like medication, medical fees for therapies and consultation, assistive devices and maintenance, transportation and education—not to mention other indirect costs where one parent gives up one’s work to care for the child thus limiting the income of the family, or if both parents continue to work, hiring a caregiver entails additional cost as well.

Still according to the same study, a sample cost scenario for a child with intellectual disability, autism, and hearing impairment (age 7) showed a total cost of PHP2,433,750 for all health services and needs associated with the disability alone—until the child reaches adulthood. Another sample cost scenario for a child with cerebral palsy and epilepsy (age 13) showed a total cost of PHP4,698,000 for all health services and needs associated with the disability, including a wheelchair and a walking aid—again, until that child reaches adulthood.

According to a health journal on The Direct Cost of Autism and its Economic Impact on the Filipino Family, “the total costs for all evaluations that confirmed the autism diagnosis ranged from PHP1,356 to PHP44,634 and averaged PHP7,411.80 per child.”

'Paano kapag wala na ako, paano ang anak ko?'

For most parents of special needs children, the lingering question would be: “Paano kapag wala na ‘ko?”

How can I ensure that my child will continue to have access to care and medical services? How can I make sure that I can juggle the needs of today as well as the needs of the future?

“Paano ba makakabawas sa gastusin?” Are there free government services that can aid me with consultation, therapy session, or education?

Financial planning tips

So in the light of mounting costs of raising special needs children, as parents—how do we continually provide an improved quality of life for our loved ones and yet still manage to make ends meet?

Here are basic financial planning tips we’ve consolidated as a result of SmartParenting research, but as always, for in-depth analysis and discussion, it is imperative to seek advice from your lawyers and financial advisors.

1. Identify and prioritize goals.

Create a checklist of what needs to be prioritized in the household and figure out which expenses need to reduced: what are the non-negotiables, how much money do you plan to save on top of the expenses intended for therapies, medication, consultation, and the like.

Even the decision of giving up one’s work to attend to your child’s needs should also be deliberated together as parents, so that you both can prepare yourselves for limited cashflow or discuss the means how to extend the family income while one is being the primary caregiver for the special needs child.

2. Select your support system.

Being a parent in itself is already challenging so a strong support system will make things bearable especially if you need an extra eye to look after your special needs child or an extra hand when you need some time to recharge.

Joining support groups with advocacies for your child’s welfare and disability awareness will also help you learn and share any new programs being rolled out tackling your child’s disability, including referrals to doctors or institutions who can best assist your child.

Additionally, this may be a sensitive topic and most likely too far out to think, but electing a guardian who will take care of your child in the unfortunate absence of both parents might be worth considering too, depending on the severity of your child’s disability or his/her ability to take care of himself/herself in adulthood.

3. Explore government benefits.

The cost relevant to interventions recommended for your special needs child is no joke.

A therapy that costs PHP1,200 each session is PHP4,800 a month if done on a weekly basis and is PHP9,600 if done bi-weekly. And if your child needs another therapist, then that’s a different charge as well. That does not yet include transportation, special diet, and medication, as applicable.

So are there government services that can help minimize costs for your special needs child?

Access to discounted rates

The Person with Disability identification card (PWD ID) comes with discount and benefits.

Every person with disability shall enjoy a special 5% discount against retail price of basic and prime commodities not exceeding PHP1,300 per week without carry over of any unused amount. (Purchase booklet shall be presented along with PWD ID to receive discount). There is a 20% discount in restaurants, on medicines, public transportation, domestic air and sea travel, medical and dental services, including diagnostic, laboratory and doctors’ fees (subject to guidelines issued by the Department of Health in coordination with Philippine Health Insurance Corporation).

Additionally, according to DepEd’s frequently asked questions on SPED, per RA 9442, amending RA 7277 Section 6.7, the learner with PWD ID shall be entitled to a discount of 20%. Find more information on how to apply for a PWD ID here.

Access to education

Persons with disability must have access to education or special needs education, non-formal education that cater to the needs of special needs students, Special Needs Education for Disabled (SPED), vocational or technical training program. In public schools, no tuition/payment is required for all learners with special needs or disability.

Requirements:birth certificate and assessment report if the child is already medically diagnosed. If the condition/disability is visible (visual impairment or blind, hearing impaired or deaf, physically handicapped), just the birth certificate but medical certificate or report is still important.

For private schools, tuition fee is required. The amount of tuition fee varies from one school to another depending on the interventions needed by your child.

Access to health services

RA 11228, Section 20-A says, “All persons with disability (PWDs) shall be automatically covered under the National Health Insurance Program (NHIP) of the Philippines Insurance Corporation (PhilHealth). Premium contributions for all PWDs shall be paid by the national government: Provided, That the premium contribution of PWD member in the formal economy shall be shared equally by their employers and the national government.”

Z benefit package for kids with disabilities

Related: Guide to PhilHealth's Z Benefit Packages for Kids With Disabilities 

Z benefit package for children with developmental disability

Package rates for developmental and functional assessments, including discharge assessments, range from PHP3,626 to PHP5,276. Rehabilitation therapy covers PHP5,000 per set. Eligible children with developmental disability can only avail of a maximum of nine (9) sets of therapies. Each set of therapies has a maximum of ten (10) sessions.

Z benefits can cover developmental assessments, functional tests, rehabilitation therapy and tests conducted by occupational, physical and speech therapists. Coverage and rules in availing Z package benefits can be found here.

Psychometric tests and other recommended developmental and functional tests that are not included in the mandatory services, laboratory tests and diagnostic procedures (e.g. brain scans, x-rays, blood tests) and medications prescribed by the medical specialists are not included in the standard package.

Z benefit package for children with mobility impairment

According to Philhealth, the package may cover assessment, prescription of prosthesis and orthosis, follow-up and repair of seating devices and wheelchair with corresponding user training on safety and functional use, measurement, casting, fabrication, fitting and alignment of prosthesis and orthosis and rehabilitation program prescription with implementation of therapy. For full package descriptions, coverage, rates, and eligibility requirements, click here. 

4. Plan for future job opportunities.

Government agencies, offices, or corporations are required to reserve at least 1% of their positions for PWDs.

But if you would rather have your child be his own boss, you can start saving now for a future business venture based on your child's passion, interest, creativity, and ability. Aside from being an entrepreneur, according to Jobstreet, the top 10 job opportunities for PWDs are: accounting specialist, call center agent, IT professional, virtual assistant, counselor, visual artist, musician, restaurant staff and graphic designer.

Also Related: Autism In The Workplace: "They Were Hired Because Of Their Abilities, Not Out Of Charity"

5. Consider creating a special needs trust and will.

A will, in general, refers to what you want to happen to your assets and properties after you pass away, while a trust fund refers to a legal entity wherein your trustee has the right to manage or hold your assets for your beneficiary.

Under a special needs trust, a trust is established to provide day-to-day medical needs and care for your special needs child. To understand how it works, how it may be beneficial to you and your special needs child, or how can you keep control over your trust fund and trustee, it is best to discuss with your financial advisor, legal counsel and your most trusted bank.