4.3.0 Money Management

Louisiana Statewide Transition Project and Louisiana: Healthy and Ready to Work Fact Sheet Series

 

11/1/00

 


I. WHY IS THIS IMPORTANT?

 

Learning to manage one’s own money is an important developmental milestone as children move through adolescence and on into adulthood. The functional reason for teaching all teenagers to manage their money is to enable them to make purchases. An additional functional reason is to teach them the relationship between money and work. However, learning to manage one’s money develops skills as basic as demonstrating the ability to purchase one item or multiple items to skills as complex as applying the mathematical concepts needed to maintain a checking account, prepare and follow a budget, file income taxes, establish and maintain credit, and obtain a loan to purchase a car or home. By the time they exit high school, all young adults should demonstrate some skills in managing their own money.    

 

II. KEY POINTS

 

(1)   Determine an understanding of the teenager’s knowledge of mathematical concepts and money management skills. For example: Can the young adult carry money around with him or her? Can the young adult manage his or her own money during community outings?  Can the young adult purchase items from the school cafeteria or school store? Can the young adult purchase items from vending machines at jobsites? Can the young adult collect and manage money for club fundraising activities? Can the young adult manage money or tokens for riding public transportation? Can the young adult make purchases from snack bars and fast food restaurants in the community? Can the young adult purchase multiple items at a grocery store or drug store? Can the young adult manage a weekly allowance of money? Can the young adult manage a checking account? Can the young adult develop and follow a monthly budget based on his or her earned (paycheck) and unearned (SSI/SSDI) income? Can the young adult manage a credit card or debit card account? Can the young adult develop and follow a savings plan for a car, home purchase, or a vacation?

(2)   Determine which skill(s) are necessary for the young adult to be competent in desired future environments and activities. Does the young adult plan to attend a postsecondary educational program? Does the young adult plan to continue living at home or move to an apartment or other housing option? Does the young adult plan to work part-time, full-time, or not at all? Does the young adult plan to own a home or a car?  Does the young adult plan to own his or her own business? What skills will the young adult need to be competent in these environments and settings? These priority skills should be addressed within the student’s IEP/statement of transition services. For example, a student who will be competitively employed and living independently may need to master all of these skills with a high level of independence. A student who will be employed through supported employment and living in a supported living arrangement may only need to master some of the skills with a high level of independence, as he/she will receive support in many others.

(3)   Teach and/or support the development of these priority skills during functional activities.  Consider the chronological age of the young adult, learning needs, previous money experiences, and current level of mathematical performance. Skills may be taught and/or supported through the use of partial participation, assitive technology, and/or activity modifications. The most important component of this step is ensuring that the young adult has the opportunity to learn and practice priority skills in the classroom and community during real-life and functional activities. In addition, it is critical that the young adult demonstrates mastery of the skill, that is, be tested, in the community during a real-life and functional activity. For example, younger students might learn to make purchases in the classroom and practice making purchases in the school cafeteria and school store, but older students must have the opportunity to make purchases in the community in neighborhood grocery stores, fast food restaurants, and public buses.

 

III. ROLES/NEXT STEPS

 

Students/Young Adults:

As they enter adolescence, young adults with disabilities should be given a level of responsibility for managing their own money that is comparable to that of their peers and that matches the values and expectations of their families. For example, all teenagers might be given a weekly allowance to spend on agreed-upon items. They might be given a budget for clothing purchases and then supported to purchase items within the budget. They might be included during discussions around the family’s financial planning for a car or home purchase or in vacation planning. They might be given responsibility for developing a budget and managing money from a part-time job or from an SSI/SSDI check. They might open up and maintain a checking account, debit card account, and/or a credit card account.

 

Families:

Families should encourage young adults to develop greater independence in managing their own money and to participate in family financial discussions and planning. Discussions might include attention to financial terminology and concepts, such as tax, interest, fixed expenses, down payment, loan, balance, minimum payment, etc. They might consider giving young adults money to make purchases in the community, thus supporting them in applying the skills they are learning in school.

 

Agencies:

Agency personnel should encourage families to discuss and support money management activities with young adults during the IEP/transition planning process. They should encourage young adults to develop greater independence in managing their own money and to participate in financial discussions and planning as part of their IEP/transition planning activities. They should give young adults more responsibility for managing their money to make purchases in the community, thus supporting them in applying the skills that they are learning and that they will need in future environments and activities. Agency personnel should also assist families and young adults in determining these priority skills and in learning and supporting skills through training, partial participation, and/or assitive technology. 

 

IV. RESOURCES/CONTACTS

 

HEATH Resource Center

One Dupont Circle, Suite 800

Washington DC 20036-1192

1-800-544-3264

 

National Information Center for Children and Youth with Handicaps (NICHCY)

PO Box 1492

Washington DC 20013

1-800-695-0285    http://www.nichy.org

 

V.  REFERENCES

 

Clark, Gary. (1998). Assessment for transition planning (part of the Pro-Ed Transition Series).  Austin, TX: Pro-Ed.

 

Ford, A. et al. (1989). The Syracuse community-referenced curriculum guide for students with moderate and severe disabilities. Baltimore, MD: Paul H. Brookes.

 

Mannix, D. (1995). Life skills activities for secondary students with special needs. West Nyack, NY: The Center for Applied Research in Education.

The development and dissemination of this document were supported in part by funds from the U.S. Department of Education (Cooperative Agreement #H158A6007, “The Louisiana Statewide Transition Project: A Multi-Constituency Model”) and the U.S. Department of Health and Human Services, Maternal and Child Health Program (Grant MCJ-22HRW6, “Louisiana: Healthy and Ready to Work”). The opinions expressed herein are solely those of the authors and do not necessarily reflect the policy or position of the U.S. Department of Education or the U.S. Department of Health and Human Services, and no official endorsement by either of these two agencies should be inferred.

 

The LSUMC does not discriminate on the basis of race, color, national origin, sex, religion, age, or disability in employment or the provision of services.

 

This document may be duplicated and disseminated in its original form without obtaining permission.

 

Alternate forms of this document are available upon request at 1-888-942-8104 or TDD 1-504-942-5900.


 

Patton, J. et al. (1999). Infusing real-life topics into existing curricula (part of the Pro-Ed Transition Series).   Austin, TX: Pro-Ed.