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Healthcare for Your Child: Understanding Insurance, Costs, and Ways to Save

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Navigating the world of healthcare for your child can be a complex journey fraught with challenges and surprises. From understanding the intricacies of insurance coverage to managing out-of-pocket expenses and uncovering saving strategies, this guide aims to simplify pediatric healthcare. The aim is to arm parents with knowledge and tips to make informed decisions, ensuring their children receive the best care possible without breaking the bank. [Read more…]

How Can a Surgery Affect Your Family’s Budget?

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Surgery is usually the last resort to helping a patient with a medical condition. Whether minimally invasive or invasive surgery, the expenses can throw a family budget off its axis. How badly can surgery impact families with a loved one in the household undergoing the procedure? Today we’re talking about this topic that is sometimes overlooked in a world where we would usually consider all other monthly expenditures and not those related to surgery.

Surgery Impacts a Household in Many Ways

We can’t always avoid everything negative that happens. Sometimes families are faced with life-changing challenges that occur suddenly and sometimes at the very beginning, for instance, when a child is born with a medical challenge. Some medical conditions like limb lengthening and reconstruction surgery for deformed limbs and bones can take place over a series of years and many surgeries. Procedures like these can set a family back with finances in ways that sometimes make simple things harder to come by. Apart from the financial impact, the emotional impact is huge, too.

Emotional Impact

The emotional impact some surgeries can have on the individual is inevitable. Patients may experience depression, a lack of self-esteem, anxiety, and feel as though they have become a burden to their family members at home. Some family members at home may now feel as though life revolves solely around one person or that other family members must now put their own lives on hold to help the patient recover. Having a good support group is critical for someone who has had medical surgery, and an emotionally supportive family is one of the positive factors.

Low-Income Homes Feel the Impact the Most

Even when both parents work, the financial strain deeply affects lower-income families. In the case where one of the parents must stay home to take care of the child or where extra home care is required, it ultimately results in one less breadwinner. In the case of bringing in medical assistance, the cost of maintaining the help is inevitable despite two incomes if the income is low.

Emergency Medical Surgeries May Cut Into Savings

Unforeseen injuries requiring surgery can easily cut into family savings and even put a hole in that retirement nest egg. More than 8 million patients required emergency medical care for fall-related injuries in 2019 alone. It is not uncommon for households to be saddled with medical bills.

Manage Health Bills Effectively

It’s estimated that about 80% of medical bills carry errors. This worsens things for a family with a loved one undergoing surgery. From the medical bills to the therapy and recovery process, it all costs money just to learn you may have been overpaying. Check whether you too, have received errors in your medical bills and query these errors as you may be owing way less than is stated on the invoice.

According to the U.S. Bureau of Labor Statistics, there are 38,600 surgeons working in the United States, and this equates to thousands of households with one or other family member who has had surgery, albeit cosmetic or for medical reasons. While healthcare remains of primary importance in the world, it isn’t always something every family or household has easy access to without struggling. Sometimes you can try and accrue funds with a GoFundMe and charity to help finance a medical cause. People are often eager to help for a good course, and if you explain your situation to your church community or other means of fund donation source, they may be able to help with part of your medical expenses. Some people take out more loans to pay their medical bills, but this may not be the best option as it still leaves the individual in debt.

If you’re reading this and you are also having a loved one at home going through surgery, know that you are not alone. Consider the facts above as you budget for a family member’s surgery.

5 Tips for Hiring a Lawyer After You’ve Been in an Accident

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It goes without saying that a car accident injury affects the victim and the entire family. Every year in Texas alone, there are 256,797 car accident injuries. Every single one of these cases involves someone’s mother, father, or grandparent — someone very dear to them. Hiring the right lawyer after a vehicle accident is critical for your accident claim and protecting your family in the future. Here are five tips to ensure you choose the right lawyer.

1. Look for an Experienced Lawyer

Insurance companies can be difficult. Thankfully this can be lessened if you have an experienced lawyer. An experienced lawyer that focuses on car accidents knows how to work around difficulties with the insurance company. They know what it takes to protect the victim of a car accident and their family from being short-changed. Insurance companies will look for ways to deny your claim and even medical care. An experienced lawyer will not let that happen. You and your family deserve high-quality legal counsel that an experienced lawyer can provide throughout the claim process. Don’t settle for inexperience.

2. Look for a Lawyer That Works on Contingency

Do you and your family have the money to pay a lawyer upfront to represent you in your car accident case? Most people don’t. The good news is that you can hire a lawyer that will cost you $0 in out-of-pocket expenses. Legal fees can get expensive; for example, lawyers in Seattle charge between $250-$375 per hour for their services. A lawyer that works on a contingency basis gets paid once your accident claim settles. After your claim settles, they take a percentage of the settlement. In other words, you can have great representation for your insurance claim without worrying about finances.

3. Look for a Lawyer With a Reputation For Compassion

You must choose a compassionate lawyer for what you and your family are going through. This can be a very stressful time for you and your family. A compassionate lawyer will understand that and be willing to take some stress off your shoulders. A great deal of stress comes from not knowing what to expect. The right lawyer will be communicative and keep you informed about your case. It is important that any lawyer you consider moves with compassion. You can recognize a compassionate lawyer by how they speak to you during your consultation and how well they listen to your concerns.

4. Look For A Lawyer That Will Fight for You

Most accident cases are settled out of court. In fact, about 91% of personal injury cases never make it to trial, but that doesn’t mean every case does not make it to trial. Choose a lawyer that is not afraid to take your claim to trial if the insurance company insists on denying compensation that you and your family deserve. You want an aggressive lawyer that always puts your best interests first. Your rights are worth fighting for.

5. Choose a Lawyer with an Impressive Winning Record

Getting the compensation you and your family deserve after a car accident relies heavily on choosing a lawyer who has proven they can get you the compensation you deserve. A good choice is a lawyer with a proven track record of getting clients what they deserve. Ask friends and family for recommendations, then check the lawyer’s record.

Each year, 40 million cars are sold in the United States between dealerships and private party sales. There are a lot of cars on the road and many accidents every year. If you have been in a car accident, don’t make the mistake of putting your family and financial future at risk. Get the representation that you deserve. Call an accident attorney today and protect your rights.

Prepare Your Family With Comprehensive End of Life Planning

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No one likes to think about their own mortality, but the truth is that no one is immune to death. While it’s impossible to predict when or how you will pass, there are some steps you can take to make the process easier for your loved ones. End of life planning is a comprehensive way to prepare for the inevitable, and it can provide peace of mind for both you and your family. Here are some tips to help you get started.

Write a Will

One of the most important things you can do is write a will. This document will outline your wishes for how your assets should be distributed after you die. Without a will, your family may have to go through the costly and time-consuming process of probate, which can be avoided with proper planning.

If you have minor children, you should also appoint a guardian in your will. If something happens to you and your spouse, this person will be responsible for raising your children. You can write a will on your own, but it’s always best to consult with an attorney to ensure it’s properly executed. If you’re under 40 and don’t already have a will, now is the time to get one.

Make a Living Will

A living will is a document that outlines your wishes for end-of-life medical care. This can include things like whether you want to be resuscitated or placed on life support. Having these conversations with your family and your doctor is important, so everyone is on the same page about your wishes.

In some states, you can appoint a healthcare proxy who will make decisions on your behalf if you cannot do so. This person should be someone you trust implicitly and who knows your wishes for end-of-life care. Making a living will is one of the most important things you can do to prepare for the end of your life.

Plan for Medical Expenses

According to a recent poll, approximately 8.3% of adults went without medical treatment because of the steep cost. Medical expenses can quickly add up, especially if you have a chronic illness or are facing a terminal diagnosis. It’s important to plan for these expenses in advance so that your family isn’t left with a huge financial burden. There are a few ways to do this, including purchasing long-term care insurance or joining the Medicare program.

For those with a life insurance policy, you can also designate it as a payer of last resort for medical expenses. This way, your family won’t have to use other assets to pay for your care. Planning for medical expenses is an important part of end-of-life planning, and it can give you and your family peace of mind.

Create a Trust

A trust is a legal entity that can hold assets on behalf of another person. This can be used to protect your assets from probate or to provide for a loved one after you die. Trusts can be revocable or irrevocable and can be created during your lifetime or after your death. If you’re thinking about creating a trust, it’s important to consult with an attorney. This is because trusts can be complex legal documents, and you want to ensure everything is done correctly.

Keep Updating Your Plans

Your end-of-life plans should be fluid and flexible, as they will likely change over time. As your life changes, so too should your plans. For example, unless you have experienced major life changes, such as marriage or relocation, it’s advisable to update your estate plan every five years.

It’s also important to keep your plans up-to-date if you have a change in health. If you develop a chronic illness or are diagnosed with a terminal illness, you may want to make changes to your plans. Updating your plans regularly is the best way to ensure that they remain accurate and reflect your wishes.

Making end-of-life plans is one of the most important things you can do for yourself and your family. There are a few key things to consider, including your will, medical expenses, and trusts. It’s also important to keep your plans up-to-date as your life changes. By taking the time to plan for the end of your life, you can give yourself and your loved ones some peace of mind.

5 States That Offer Empowerment Scholarships for Special Needs Children

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Empowerment Scholarships for Special Needs Children

When you have a special needs child, you face many expenses. Your child may need intensive speech, physical, occupational, and behavioral therapy. While some families find they can receive some of the services they need for their child at school, others find that public schools cannot handle, or provide, the intervention a special needs child requires. If you’re frustrated with the public school system’s response to, and services for, your child, you may want to investigate whether you’re in one of the 5 states that offer empowerment scholarships for special needs children.

General Assistance

Nearly half of the states offer some type of school choice for their residents. (Ed Choice explains the different programs each state offers.) Programs vary from a tax credit, to a stipend to help children attend private schools instead of public, to empowerment scholarships.

States That Offer Empowerment Scholarships for Special Needs Children

Currently, five states offer empowerment scholarships (ESA):

  • Arizona,
  • Florida,
  • North Carolina,
  • Mississippi,
  • Tennessee

Who Qualifies for an ESA?

Students who meet certain requirements such as having a documented disability or residing in a school district with an underperforming school can receive empowerment scholarships. Requirements vary per state.

In Arizona, where I live, a student must attend public school for at least 45 days and have a documented disability, have a parent who is in the military, or live in an underperforming school district to be eligible for an ESA. Once a special needs student begins to receive an ESA, her siblings, even those without disabilities, can also receive one if they’ve met the requirement of attending a public school for 45 days.

How Do ESA Programs Work?

In Arizona, a child who has an ESA receives 90% of the state money that would have been used to educate the child at a public school. (The other 10% goes to the child’s local public school even if the child is not attending.)

The size of a child’s ESA funding depends on his documented disability. Children with autism and Downs Syndrome receive the largest scholarships because they typically require more interventions than a child with ADHD, for example.

Every quarter, the child receives a financial distribution in his ESA account. That money can then be used for:

  • private school tuition,
  • homeschooling expenses,
  • therapies,
  • Educational testing,
  • Extracurricular activities, and
  • Other approved expenses

Our Experience with Arizona’s ESA Program

I have three children; each has two special needs. Two have autism, two have dyslexia, and two have ADHD. We became members of the ESA program in 2019.

Empowerment Scholarships for Special Needs Children

ESA has been a lifesaver for my children. They have benefited from private Barton Reading & Spelling tutoring to help them with their dyslexia. They have received educational testing, speech therapy, and private math tutoring. I’m also able to homeschool the younger two children and pick curriculum that suits them and their learning styles.

Before receiving ESA for my kids, they received speech therapy through the public school. They had 30 minutes of group therapy with three other kids once a week. After ESA, they received 30 to 60 minutes of private speech therapy weekly. That made an enormous difference in how quickly they progressed and ultimately finished speech therapy.

Final Thoughts

If you have a child with special needs, you know how expensive providing for their academic and therapeutic needs can be. If you live in one of the states that offer Empowerment Scholarships for special needs children, consider looking into the program for your child. I’ve even heard from several parents of special needs children who specifically moved to Arizona for the Empowerment Scholarship and the opportunities it afforded their children.

Read More

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How to Afford Raising a Child with Special Needs

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Afford Raising a Special Needs Child

When you have a special needs child, you are faced with a double financial whammy.  Of course, there is the added expense for therapy, medication, counseling, tutoring, etc.  These expenses alone can put a family into debt as they try to provide for their child.  However, there’s another cost that is rarely discussed.  Because caring for a special needs child can be time consuming, often one parent has to quit their job or reduce their hours to part-time.  Now, there are not only added expenses, but a loss of income.  How can one afford raising a child with special needs?

Thankfully, there is assistance available, if you know where to look.

Get a Diagnosis

The first thing you must do is get a diagnosis.  For instance, if your child has autism, she likely can’t receive any therapy until she is officially diagnosed by a qualified professional.

You will need to talk to your pediatrician to see how to go about getting a diagnosis.  There are a number of experts who diagnosis special needs children, depending on what special need you think your child has.

How to Afford Raising a Child with Special Needs

Afford Raising a Special Needs Child

Photo by Nathan Anderson on Unsplash

Once you have the diagnosis, you can begin to pursue therapy, if need be, and funding sources.  There are a number of places you should look.

See What Your Insurance Covers

Once you have the diagnosis, the next step is to see what your insurance covers.  All three of my children have special needs.  While my husband’s insurance didn’t cover speech therapy (some insurances do, but ours didn’t), it did cover applied behavioral analysis (ABA) therapy for our children with autism.

Depending on the quality of your insurance, you may be surprised to find that it covers more than you would have expected.

Talk to Other Parents

If you’re in contact with other parents of special needs kids, make sure to talk to them.  They can give you tips for where to find resources, whether they be federal or state aid or grants.

You can find other special needs parents at support groups and in places like Facebook groups.  If you homeschool, you may find special needs parents in your homeschool groups because a surprising number of kids who are homeschooled have special needs.

The more people you can talk to the better because each parent has a different story and different places where they’re getting help and support.

Apply for Social Security Income (SSI)

Another option is to apply for social security income.  Based on your family income and your child’s disability, you may qualify for SSI.  You will need to fill out some forms and make an appointment at your local social security office.  There, you will have an interview about your finances and your child’s disability.

Of note, if your child qualifies for SSI, you will also be able to cover your child through Medicaid.

If you don’t have private insurance but make too much to qualify for Medicaid, look into getting insurance through the Children’s Health Insurance Program (CHIP).

Open an ABLE Account

Afford Raising a Special Needs Child

Photo by Sharon McCutcheon on Unsplash

An ABLE account allows you to save money in a special account just for your special needs child’s medical and living expenses.  You or other relatives like grandparents can deposit up to $15,000 a year.  This tax-advantaged savings account does not tax the income earned by the account.

Another advantage of this account is that if your child qualifies for governmental assistance, such as SSI or Medicaid, the money in their ABLE account does not disqualify them for services on a financial basis.  Meanwhile, the money in the ABLE account can be used for their education, food, housing, support services, and an array of other needs.

Find What You’re Eligible for With Your State

Another fabulous tool to use is Benefits Finder.  This tool asks you to input some information about your child and his disability.  It can then help you see what benefits your child may be able to receive and what agencies to contact to pursue these options.

Determine If Your State Supports School Choice

Many special needs children simply don’t get the support and intervention that they need through the public school.  If your state supports school choice, you may be able to apply for funding to help provide your child with the education they need, whether that be through homeschooling and using tutors and therapists or through a private school, which would otherwise be unaffordable.

I’m in the state of Arizona, and they offer Empowerment Scholarship Accounts (ESA).  I have one child who has both dyslexia and a speech issue, so we applied and qualified for the ESA scholarship.  Through those funds, I was able to get my child a private dyslexia tutor and a private speech therapist.  Paying for these things out of pocket would have cost my family $800 a month, which is not sustainable.  Thanks to the scholarship, I could afford to pay for that.  My child has now graduated successfully from both therapies.

Indiana is planning to launch a similar program, and Mississippi has several scholarships available for students with special needs.  You can find out if your state offers a similar program by going to the Ed Choice website.

Final Thoughts

Raising a special needs child can be exhausting, but it’s also rewarding.  However, the financial costs of getting your child the help he needs can be financially draining.  One special needs parent I spoke with when we first learned of our children’s disability said she and her husband ended up filing for bankruptcy because there were so many interventions she had to pay out of pocket.

There are resources available so that seeking help for your special needs child doesn’t have to decimate your finances.   With these resources, you should hopefully find ways to afford raising a special needs child.

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Show You Care: 5 Factors to Consider When Choosing an Assisted Living Facility

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Do you have an older relative who is having difficulty doing things they used to do on their own? Or maybe they’re just getting too isolated and would enjoy having others around more?

Then perhaps an assisted living facility would be right for them. Assisted living facilities can offer help with daily activities, like cooking or housekeeping, and offer a place to socialize with other people.

If you are interested in an assisted living facility for a loved one, here are 5 things to consider in selecting one that’s right for you.

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How I Use Bank Accounts To Organize Our Finances

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bank accounts to organize finances

I recently went out on my own and started a financial consulting and bookkeeping practice. As the primary (and sometimes only) breadwinner for my family, this has thrown a bit of a wrench in our personal finances. Not only am I not getting a regular paycheck every two weeks, but I lost my employer-subsidized insurance and a 401k match.

Getting Financially Organized

I’ve spent the past few months researching our options for health insurance and identifying the best options for our retirement savings. I’ve also set up a process to make sure I save the appropriate amount for federal and state income tax because I don’t have an employer withdrawing it from my paycheck for me.

These changes were all things I was expecting. What I hadn’t realized the importance of was organizing our cash so it wasn’t all sitting in one big pile. To solve this, I set up multiple bank accounts to organize finances.

Given that my self-employment income is variable, and that my largest client pays me once a month, having separate bank accounts to disseminate my cash to is critical. If I keep it all in one account, including my tax estimate, I will be tempted to spend it. I know myself too well.

I’ve re-organized the flow of our family’s cash into five bank accounts. Each account has a designated purpose that allows us to optimally manage our money. The five bank accounts we now have are a family checking account, an emergency savings account, a family savings account, a medical expense savings account, and a flash cash account.  Separately, I have a business checking account and a tax account.

Family Checking Account

This is the primary bank account. All money comes and goes through this account. I transfer cash from my business checking account once a month to the family checking account. My husband’s paychecks are also deposited here. All bill payments are drafted from this account. Money is transferred to our other bank accounts from here, all via automatic draft.

Emergency Savings Account

We have an emergency fund in place to cover unplanned events such as home or car repairs, but mostly I’m always worried about an emergency trip to the veterinarian. We have a mischievous Great Dane, along with a few other critters. I don’t want to find myself in a position of saying no to a life-saving surgery because we don’t have the funds.

Family Savings Account

I funnel funds for everything we want to do that requires some savings over time. Things such as the next family vacation to Walt Disney World or Myrtle Beach, season passes to the museum or a new SUV.

It’s also our rainy day account.

Health Savings Account

While not a traditional bank account, we set up a health savings account.  A Health Savings Account (HSA) is an account specifically for health-related expenses. It’s tax-free and typically has a debit card assigned directly for payments from the account. The benefits of an HSA include the contributions and any earnings are tax-free and it can be rolled over into the next year.

Monthly, we are transferring cash to the HSA to cover future medical expenses.

Flash Cash Account

Otherwise known as a slush fund or fun fund. All our money left over after bills goes here. This money is used for date night, my Chai Tea Latte addiction, and money for all the fun things.

Sadly, it’s also used for not so fun things like the toilet seat cover we bought last night.

P.s I just heard about this great new fintech app called Astra.finance.  Basically Astra is a smartphone app that lets you automatically move around between your accounts.  This kind of thing is great if you have a steady income.  You can pretty much set up some rules and forget about moving your money.  It works for both checking and savings accounts.

Does your family use multiple bank accounts to organize finances? Let us know in the comments below.

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How To Care for Your Elderly Parents

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how to care for your elderly parents

As you know, Kids Ain’t Cheap normally talks about young children and finance. However, as children grow up, they sometimes find themselves in the parenting/guardian position. In somewhat of a role reversal, older parents often end up needing assistance from their children. So, we felt this was an important topic to talk about.

Once your parents reach Social Security retirement age, Medicare becomes a significant part of their lives. The program provides them with a certain level of medical insurance, ensuring  more manageable expenses. This is especially important once parents are no longer working. You, as the adult child, may have to play a major role in this process. Here’s how to care for your elderly parents via Medicare coverage.

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The Biggest Childhood Expenses You’re Likely to Face – Ages 0 to 5

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Children are a gift.They make us laugh, they make us cry and they make our lives worth living. On the flip side, children are also one of life’s greatest financial expenses. If you’re a new parent or will be soon, it may seem like you hear about a never ending list of things your child needs. Today I’m breaking down the biggest childhood expenses from age 0 to 5.

The Biggest Childhood Expenses You’re Likely to Face

Age 0 to 1: Diapers

Diapers are expensive. Not only is the price daunting ($20+ to $40+), the amount that a new parent goes through can be astounding. On average, a baby will go through over 2,000 diapers in his or her first year of life.

How to Save: To get a leg up on that expense, open a second checking or savings account just for baby expenses. Drop an allotted amount of cash in the account every month. You’ll soon have a steady cash flow for that expensive diaper fund.

Age 2 to 3: Day Care

I have known day cares to charge under $200 a week, to up to $1,000 a week depending on the region. For example, the $1,000 dollar a week

For example, the $1,000 per week day care in my area caters to the children of doctors, judges, lawyers and prominent corporations. However, no matter if you are a high-income earner or average Joe, day care can be brutal on a family’s budget.

The average cost of day care in the U.S. is $11,666 per year. However, the range can fluctuate depending on the area you are in between $3,582 to $18,773 a year.

How to Save: Sometimes you can offset the cost a little if you:

  • Consider working at a day care to receive an employee discount.
  • Find a center that offers a discount for siblings.
  • Price the cost of living and decide if it’s financially healthier for you to work less and stay home with your child.

Age 4 to 5: Preschool and Health Care

Depending on where you live and the quality of the school, the price for preschool could be very high. The average cost of sending your child to preschool is between $4,460-$13,158 per year.

Health care is another big expense, especially in the early years. Not only do little ones get sick more often because their immune systems are not built up, but other health care expenses can arise too. Things like special therapies (speech, occupational, etc) or disabilities may not be covered under some insurance plans. Special surgeries or uncommon injuries may not be covered, either.

This means parents have to pay outrageous amounts of out of pocket expenses for things not covered under their plan.

How to Save: Find out what your insurance plan does and doesn’t cover. Consider opening a Health Savings Account and stockpiling it for unknown health-related expenses. The great thing about an HSA is that its contributions are tax deductible.

In Conclusion

There are many things to think about when you have a new baby. Focus on the biggest childhood expenses and figure out how you are going to best navigate each one. This will help to ensure a financially sound first five years.

How do you save money for your family’s biggest childhood expenses? Share one or two ways with us below.