A twenty-year-old with a job at a hardware store gets his first paycheck. He cashes it, buys a gaming console, and has nothing left for the bus. His parents did not know that no one had ever shown him how to make a plan for a paycheck. His IEP had a goal about "money skills" that said only: "Student will count money."
Money is one of the most practical parts of adult life, and it gets thin treatment in many IEPs. This guide shows where money skills fit in a transition plan, points to free federal resources, and offers a ladder of skills and invented goal examples. It is general information, not financial, legal, or benefits advice.
Where money skills fit
Under the federal rule, a transition plan includes measurable postsecondary goals in training, education, employment, and, where appropriate, independent living skills. Managing money is a core independent living skill. The Center for Parent Information and Resources collects family guides and tip sheets on preparing for independent living and managing finances among its transition starters, and encourages planning ahead.
Whether a student has a money goal depends on needs and preferences. A student who will hold a job has a reason to learn pay, taxes, and saving. A student who will rely on others for most financial tasks may still need to understand choices, safety, and how to ask for help.
Free resources
Two federal resources are easy to use.
Money as You Grow. The Consumer Financial Protection Bureau's page for parents and caregivers says there is no need to be a money expert. It groups tips by age: young children, school-age children to preteens, and teens to young adults. It offers conversation starters on choices such as buying a car, getting a pet, moving to a new home, paying bills, and paying with a credit card, along with recommended books and a way to check whether a child is reaching age-appropriate money milestones.
Money Smart for Young People. The Federal Deposit Insurance Corporation offers free curricula for prekindergarten through grade 12. The grades 9 to 12 curriculum has 22 lessons, covering topics such as banking, credit, budgeting, saving, careers, taxes, and identity protection, and at that level car purchases, college financing, homeownership, and retirement. Each curriculum includes an educator guide, handouts, and slides, and the materials include ideas for modifying lessons by grade level. There are also parent and caregiver guides with activities and conversation starters. The FDIC page does not address students with disabilities, so teachers and families adapt the materials.
A ladder of money skills
Skills build one on another. The ladder below is a general outline, not a federal list, and a student may be at different rungs for different skills.
| Rung | Skill | A way to practice |
|---|---|---|
| 1 | Recognizing coins and bills and knowing what things cost | Sorting real coins, comparing prices on a grocery receipt |
| 2 | Making a purchase | Paying for a snack at the school store, with a prompt to wait for change |
| 3 | Counting and checking change | A store trip with a small fixed amount to spend |
| 4 | Planning a small purchase and saving for it | A chart showing weekly savings toward a chosen item |
| 5 | Using a bank account or debit card safely | A visit to a local branch, practice with a play card, a rule about PINs |
| 6 | Budgeting a paycheck or allowance | A weekly budget with categories for needs, wants, and saving |
| 7 | Paying a bill | Practice with a sample bill, a calendar, and an automatic payment if appropriate |
| 8 | Staying safe from scams | Role-play phone and online scenarios, with a rule to check with a trusted person |
Goals, from postsecondary to annual
An invented example shows how the pieces link.
| Level | Example |
|---|---|
| Postsecondary goal | After graduation, Sam will pay his own phone bill each month |
| Annual goal | By the end of the year, given a sample bill and a calendar, Sam will identify the amount and due date and enter them in his phone reminder in four of five trials |
| Transition services | A budgeting unit in a life skills class, a community trip to a bank, and a family practice routine |
| Assessment basis | A family interview, an observation at the school store, and a skills checklist |
The Center for Parent Information and Resources says an annual goal that supports a postsecondary goal should name a condition, a measurable behavior, criteria, and a timeframe. See independent living skills goals for the full pattern.
Practice at home and in the community
Money skills stick when they are used. A few ideas:
- Give real choices. A small allowance or a task-based earning, with a say in how it is spent.
- Use shopping trips as lessons. The school's community-based instruction can reinforce what you practice at home.
- Talk through bills. Show how the family pays one bill each month.
- Use tools the student will use. A phone alarm, a pictured budget, or a pay-tracking app.
- Name scams. Talk about phone calls, texts, and emails that ask for money or information.
Helping when a student needs support
Some young adults need ongoing help with money. That does not mean no skills are worth building. Teams can write goals that include a support, such as "will review each purchase over a set amount with a trusted person before paying." Decisions about who helps with money, and how, belong to the young adult and family, with advice from a professional where needed. See guardianship and supported decision-making: an orientation for the terms. This guide does not recommend any arrangement.
Work, benefits, and taxes
Earning money can interact with public benefits and taxes in ways that differ by person and program. This guide gives no amounts or rules. Before a job starts, read the Social Security Administration's youth page and ask a benefits counselor, as described in SSI and transition-age youth. Keep copies of pay stubs and letters in a folder.
Questions for the team
Money-skills mix-ups
- Writing "count money" and stopping there. Counting is one rung of many.
- Teaching only in a classroom. Real purchases teach more.
- Skipping safety. Scams reach everyone.
- Starting a job without checking benefits. Ask first.
- Assuming a student will learn it on their own. Skills need teaching and practice.
Terms are in the glossary.