Special needs children and family income

The only surprise here is that that family income decrease is only about a 14%, though the total cost was estimated at closer to 25% of income. (via FuturePundit: Autistic Kids Lower Parental Income, emphases mine):

The costs of raising kids with developmental defects is very high

New research suggests that the average household with children with autism not only spends thousands of dollars toward educational, behavioral and health care expenses each year, but also suffers from a lesser-known cost that hits them up front – a sizeable chunk of missed household income, perhaps as much as $6,200 annually....

...“That’s a staggering 14 percent loss,” Montes said. “We presume this may be strongly related to a lack of appropriate community-based support resources and services...

The study, published in April’s edition of Pediatrics... is based on data from the National Household Education Survey on After School Programs and Activities in 2005, a telephone questionnaire that drew on parents of more than 11,000 children, kindergarten-age through eighth grade. Parents reported if their child had an autism spectrum disorder, or ASD (that is, if he or she had ever been diagnosed with autism or a pervasive developmental disorder), their total household income and their highest level of education. Several other demographic details were collected, including the parent’s age, type of family (two parent or otherwise) and whether they lived in an urban or rural locale...

...Data collected from 1999 to 2000 showed that each year U.S. taxpayer dollars collectively pay $12,773 of the annual education expenses associated with each child with autism. In spite of this assistance, ASD-affected families still bore the brunt of the financial burden. Between un-actualized income (again, estimated near $6,200) and extensive out-of-pocket ASD-related expenditures – one 2006 national study from the University of Rochester estimated that these families paid nearly $5,300 more than other families – this direct-to-family cost may exceed $11,000 each year...

The authors speculate that the income shortfall may be affected by milder developmental disorders in the parents, however the interaction is complex.  Because the projections adjust for parental education, which would be affected by relatively subtle parental disability, a parental disability effect may be already accounted for in the model.

In our situation (adopted children) the income decrease is probably closer to 50%. We still do very well, so no complaints there! The key point is that the burden of cognitive disabilities is very high and lifelong.

This study provides an economic motivation, if we need any, to justify research in identifying the causes of cognitive and behavioral disabilities and creating prevention and mitigation strategies. Prevention, of course, won't help our family very much, but I think there's a lot (lot, lot) more we could do on the mitigation side.