developmentally Disabled and Finances

How to Protect Those With a Developmental Disability When Handling Finances

Managing money can be challenging for most Americans, even in the best situations. For the 6.5 million people in the United States living with a developmental disability money, credit and debt create a unique concern.

Developmental disability is a term used when a person has a specific limitation in cognitive functioning and skills, including communication, social and self-care skills. Examples of developmental disabilities include autism, attention deficit disorders, and intellectual disabilities.

Developmental disabilities vary greatly, so do the abilities of the disabled to handle their finances. Some individuals with developmental disabilities may be able to make sound financial decisions and for others receiving a credit card solicitation may lead them to overspend and put them at significant risk for a financial uproar.

How Can I Help My Family Member Make Sound Money Decisions

For many family members caring for an individual with a developmental disability we often question how much do we help, or what do we do to protect their finances. The ultimate goal is to achieve as much independence and still be there for them when they need our help.

Here are a few tips on how to help a developmentally disabled loved one with their finances.

1.Don’t Overstep

Intellectual disabilities vary in degrees, and for some individuals, they may be perfectly capable of handling their finances. If you are helping that individual in other activities of their daily living, it may be very natural for you to want to help them with this area. Many individuals with disabilities want to be as independent as possible. It is important to remember that they may see this as you overstepping or you trying to control their life. Keep in mind what their strong points are and offer advice as you would to any other.

Set up Accounts with Limitations

You may be tempted to set up joint checking accounts, or a credit card with an authorized user so you can easily track their spending behaviors.It is also important to remember that setting up these types of accounts opens you up to financial liability for any checks written or any credit card charges they have made. You may consider opening a Secured credit card for them, a prepaid card.

Put Credit Safeguards in Place

Reduce the number of credit offers sent to your developmentally disabled family member by opting out of receiving prescreened offers of credit at OptOutPreScreen.Com or by calling 888-5-OPT-OUT.

You may also want to look into putting a credit freeze on your loved one’s credit report. Having a freeze placed will make it difficult to obtain credit, but could also prevent your loved one from impulsive credit card applications.

Monitoring your loved ones credit report for any unauthorized activity or any credit errors is a good rule of thumb. Consumers are allowed one free credit report from all three major credit reporting bureaus; this can be obtained at www.annualcreditreport.com. 

Depending on the level of developmental disability you may also look into either guardianship or become power of attorney for your loved one.

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