Real Money Advice for Divorce

A three stage money guide to help you negotiate the divorce process and create a secure financial future for yourself and your kids.

30 Day Challenge

How to turn your life around in 30 days and save  $30 000 in the process.

A breakthrough in money management!

Real Money Advice for Families

Move your finances from red to black in four simple steps and secure your family's financial future.

Real Money Advice for Kids

A guide designed to help parents  teach their kids  the skills to become successful, confident and financially responsible.

Covering the costs of education when your child has special needs

Analaura Luna

If your child has special needs, deciding between special needs schools and mainstream education can be difficult. And in order to get the answers you need to make the right financial decisions, you need to know which questions to ask ... it can be difficult to find out what they are. A study done by the Australian Institute of Health and Wellbeing revealed that 7.6 per cent of Australian children under the age of 14 are living with some kind of disability, which means there are a lot of families out there who are facing extra financial challenges. About 41 per cent of parents of children with disabilities said giving their kids the support they need means extra expenses, and more than one third reported needing financial assistance. Paying for your child’s education is a major concern for all parents and if your child has special needs finding the right school can be more complicated than just weighing up the pros and cons of the public and private systems – which makes knowing all of your options even more important.

Throughout most of the last century educational choices for children with disabilities were limited and it was common for them to be sent to special schools, even when it wasn’t the best option. Fortunately those days are now over – in 1992 the Commonwealth Disability Discrimination Act made it illegal for schools to discriminate against students based on a disability. All public and private schools are now required to make reasonable adjustments to the school’s premises and curriculum to allow a child with special needs to participate on the same basis as their peers and if a school wants to refuse to enrol a child it has to prove that the adjustments would cause ‘unjustifiable hardship’. Recommendations by UNESCO suggest that inclusive education can be an excellent way for children to learn, so if you feel that attending a mainstream school would be best for your child, make an appointment with the school of your choice to discuss the necessary adjustments that would need to be made. If you need more information about this, the website of the Attorney-General’s Department offers a summary of the Disability Standards for Education which you may find useful.

But the reality is that mainstream classes may not be the best option for all kids. Special needs schools are available in both the public and private systems but they often have enrolment criteria and your child may need to be assessed before they can be enrolled. Your state’s Department of Education website should provide a list of the public special needs schools in your area and if you’re interested in a private school The Australian Schools Directory may be a good starting place for your search, but since teaching special education classes is more of a vocation than a job, it's also a good idea to visit the school to meet the teachers who will be taking care of your child to see if they've had the 'calling'. It’s also worth remembering that special schools may come with extra charges – or may require that fees be paid up-front – so look into the fee structure before you make any concrete plans.

Speaking of fees, if you’re wondering how you’re going to pay for this don’t panic, because there are options. Setting up an education plan with a friendly society that offers a tax rebate can be a useful way to save for your child’s future. But finding money to save in the first place can be difficult, so remember that Centrelink offers payments that may assist you. If your child is under 16 you may be eligible for the Carer Allowance or the Carer Payment. You can generally receive the Carer Allowance if your child needs extra care on a daily basis, and the Carer Payment applies if a child has a severe disability or medical condition, so get in touch with your local office to see if you qualify. To provide long-term support for a child with a severe disability it might be worth considering creating a Special Disability Trust. This special needs trust can help you to provide for your child’s future and it can hold up to $550 000 without impacting any other support payments. But, your child will have to be assessed before you can establish one, so contact the Department of Families, Housing, Community Services and Indigenous Affairs for more information.

Regardless of the financial issues that your family faces, it helps to know as much about your options as you can find out, and hopefully, you now have a good idea of where to start looking for the answers to at least some of your questions.

If you liked this article you might also be interested in these other articles about kids and money:

Back-to-school ideas for beating the budget 'gremlins'

Things you really need to know when you're having a baby

Want more? Take a look at the rest of our parenting, kids and money articles.

Share your thoughts, ideas and tips with the rest of the YFYM community ... visit our live forum to have your say!

Author's Biography

Analaura Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.