By Isha Swaminathan
Almost everything today requires money. From buying groceries and clothes to paying for college and houses, financial literacy is so important. Financial literacy is the ability to understand and effectively use different financial skills. These skills include managing personal finances, budgeting, saving, and investing. They are necessary to prevent financial mistakes, prepare for emergencies, help individuals reach their goals or live independently, and make people more confident. Financial literacy is key to having a good foundation for a smart relationship with money and financial stability.
Understanding how to manage money is important for a stable financial future, which is why there’s a big push to teach everyone better money management and spending skills. The idea is straightforward: people who know how to manage money tend to be more independent, participate more in the economy, and make smarter financial decisions. This usually leads to them saving more and building more wealth. However, there’s a noticeable gap in financial education for young people with Autism Spectrum Disorder (ASD). There are about 5.5 million autistic adults in the United States, and the lack of financial education puts them at a disadvantage and affects their independence. Studies show that autistic youth understand the importance of financial knowledge and want to be independent, but they often don’t have the skills or support they need to achieve their financial goals.
Despite the clear benefits of financial knowledge in everyday life and independence, many autistic people don’t receive enough education in basic financial skills. A study that looked at financial literacy and behaviors of autistic adults, compared to non-autistic adults, showed that autistic adults had lower financial literacy. They were also less confident in financial matters and struggled with daily money management. These adults experienced greater uncertainty and higher anxiety when dealing with financial problems and were less likely to plan for long-term goals or emergencies that required money.
Financial literacy is more than maintaining money and having independence. Without knowing how to manage money, individuals are at risk of living in poverty. It’s important to note that people with disabilities are two times as likely to face poverty as people without disabilities.
Potential solutions involve making existing resources more autism-friendly and improving access to financial education.
- In a study evaluating the financial capabilities of people with developmental disabilities, people with developmental disabilities were more likely to prefer ATMs over online banking, showing a preference for more hands-on approaches to money handling. This more touchable and visual means of monitoring spending seemed to work well for them. However, a crucial disadvantage is that it is very easy to lose track of spending. Developing a means for them to track their spending or using something more sensory-friendly would help them greatly.
- Making banking websites more autism-friendly may also help with autistic adults’ fear of online banking, which is known to present barriers to using online banking features. Many adults with autism report feeling anxious and nervous about using online banking. Many standardized tests have implemented additional formatting settings (changing screen color, font size, and adding audio aids) to aid children with learning disabilities, such as dyslexia. Similar features, if implemented, may help autistic adults be more comfortable using online banking services.
- The autistic participants in the studies have expressed a need for specialized financial education, emphasizing practical skills such as managing bills and taxes—simple skills that would greatly impact their future economic success and financial independence.
Ultimately, these findings emphasize the need for enhanced collaboration between educational systems, caregivers, financial institutions, and policy makers to provide comprehensive financial literacy programs for youth with ASD.
The lack of financial resources available to autistic adults negatively affects their well-being and puts them at a higher risk of living in poverty. As highlighted by many studies, while autistic people strive for financial independence, they lack the necessary skills and support, leading to anxiety, a breakdown of their confidence, and a barrier to independence. For people with disabilities, being able to manage one’s own finances increases overall independence and improves psychological well-being and the amount of income they can collect. Without the knowledge and skills to complete these tasks, they are dependent on others for help, greatly limiting their freedom.
This under-researched area and crucial component of their well-being must be further studied for appropriate action to be taken to improve their quality of living.
Additional Resources
- Financial Resources For Adults With Autism – Discusses how financial planning is crucial for adults with autism, who often face unique challenges and support needs.