Living with a Disability - Tips to Develop a Financial Management Plan

Once you discover the benefits available to you, it is time to develop a financial management plan and take charge of your money. The cost of living with a disability can be overwhelming; some find themselves falling into debt. Resources are available whether you are interested in managing money, creating a budget or plan, needing help to get out of debt, or finding assistance to save for your future.

Illinois workNet offers tips, tools, and opportunities to ensure your money management questions are answered. The Money Management Guide features resources for general finances and financial planning for people living with a disability.

To get started, check out these articles on money management and budgeting:

• Banking and Savings 101
• Budgeting Basics
• Getting Started with Money Management – Young Adults
• How to Keep Your Financial Information Safe Online
  
• Getting (and Staying) Out of Debt

For a visual approach to learning about money management, watch these videos.

Once you're ready to begin planning, download the Monthly Expenses Worksheet to track how much you expect to spend each month and what you are spending money on. Access the Word and PDF versions of the Expense Worksheets, including Large Prints, on the side of this article under "Resources."

Use the Event Calendar to find in-person or virtual events/workshops focused on learning money skills!

How Can I Save Money?

The "Achieving a Better Life Experience" (ABLE) Act was passed in 2014 to help individuals with disabilities save money without losing their eligibility for public benefits. ABLE accounts can be used to save money for qualified disability expenses such as education, housing, transportation, legal fees, employment training, and basic living expenses (like food). To view topics at a glance and learn how to get started, visit the ABLE National Resource Center.

The Illinois ABLE program allows persons with a disability to save money for qualified expenses without losing eligibility for certain programs, like SSI and Medicaid. To see if you or someone you know qualifies, take the Eligibility Quiz.

The Tax Cuts and Jobs Act of 2017 had minor effects on ABLE programs; 2018 changes can be found in this Ticket to Work Blog. As of January 1, 2023, the IRS raised the annual contribution limit for ABLE accounts to $17,000 (previously $16,000); more details can be found in this IL ABLE article.

However, in some cases, you may be looking to save for large purchases, such as post-secondary education/job training, buying a home, or starting a business. In these instances, an Individual Development Account (IDA) might be right for you. IDAs have matched savings accounts, meaning your contributions are matched with money from your TANF program or other funds called "demonstration project" money. Your SSI benefits will not go down with an IDA. Eligibility requirements are found on the Social Security Administration website. Locate IDA Programs on Prosperity Now's website.

Assistance Options

Sometimes it's necessary to get help with managing and paying off debt. By getting out of debt, you can build a strong foundation for your future.

A credit counselor offers advice and support services to consumers who are struggling to stay within budget. The Illinois Department of Financial & Professional Regulation reminds consumers to be cautious when seeking a credit counselor; not all debt counselors are created equal. Learn more about Choosing a Credit Counselor on the Federal Trade Commission's website.

Most expenses are monthly bills and payments (rent, phone, etc.). Since you may be out of work/not receiving a paycheck, or not receiving full benefits, paying for essentials and covering bills is difficult. If you are experiencing difficulty, Get the Help You Need.

The Illinois Department of Human Services (IDHS) provides residents access to services, especially those who face obstacles to self-sufficiency. Use the IDHS Office Locator and filter by the Office Type and your County to find your local office.

• Cash Assistance Programs include:
  
• Aid to the Aged, Blind, and Disabled (AABD) is a cash assistance program for eligible residents that need money. Persons who are aged (65+), blind, or disabled may be eligible.
  
• Temporary Assistance for Needy Families (TANF) provides financial assistance to pay for food, shelter, utilities, and expenses for pregnant women and families with children.
  
• Earned Income Tax Credit (EITC) helps those who work reduce their federal income taxes and/or get a bigger refund if they meet qualifications.
  

Next

No matter what your financial status is or where you are in your journey, Illinois workNet has you covered with tips, tools, and resources to reach short and long-term financial goals. Browse Financial Planning Resources for People Living with a Disability or Return to the Disability Employment Guide Home Page.

As you look for a new job, it's also a good time for a fresh start including with your finances. Resources to keep in mind: