Does raising a child with special needs sometimes feel like riding a cyclone? Karen Phipps shares her experiences and how she was able to manage the financial side. Just getting this aspect sorted out can make a huge difference. Visit her website to learn more about her.
Emmalou Penrod
Welcome to our episode today. Today I’m talking to Karen Phipps. And she is a financial advisor. So we’re talking about how money works and how families can get money to work for them. So Karen, first of all, welcome, and thank you for joining us.
Karen Phipps
Thank you for having me. Glad to be here with you. Emmalou.
Emmalou Penrod
All right. And I would like to hear how you became a financial adviser.
Karen Phipps
Well, I would love to tell you the story. I did not get into this early on. I actually, Jane Landsberger. We met up in 2016. Because my home that I’m in now with my special needs daughter was going to be a group home. And her son came in was going to live here. And then tragically, one of the staff abused my daughter, and we had to shut everything down. And we had to move in here. Jane and I kept that friendship going. And you know, it’s just a God thing. I always say God opens doors where you’re supposed to be at. So through that, Jane noticed our need, because we’re very financially illiterate, we were, in this household. And we just learned how to rob Peter to pay Paul, in that sense, week to week. And Jane, she keep little by little, showing me ways, talking about how money works. It took her about two years. And then finally, I was like, “Okay, you know, I think I’m ready to try that.” But it’s something that I prayed over for a very long time. I’d like to think I’m listening to what God tells me to do. But it’s kinda like, today, “Oh, yeah. Okay, I like this. I’ll do this today, Lord.” “Oh, no. Let’s try that tomorrow.” So, you know, He just really has to talk hard to me and say, listen, and so finally, one day, I said, “You know what, Lord, I’m going to walk in this store. And if this is to be, then you’re going to, you know, let me know, if not shut it down.” And so it’s just been an ongoing thing. What I love about How Money Works, is the fact that I’m taking this with Jane, and we have another friend. And we’re turning this how money works into how money works for special needs families.
Emmalou Penrod
I just wanted to point out very quickly, the research shows that, it’s expensive to raise a child in the best of circumstances. But the estimate is it costs four times more to raise a child with special needs. You have additional medical costs, and quite often you need therapy, special schools. So let’s let’s establish that there is a special need for any family with a child with special needs.
Karen Phipps
Yes. And, you know, we went through that, for us. And what we want to share is the steps that most families should take once there’s a diagnosis all the way up to adulthood, and where they should be at because I talked to a lot of people now who have children my age, and my daughter is the youngest. And she’s about to be 27. But went on for, so she is always going to need care. And it was, it was like a, you just felt like you were in this Cyclone going down. Because you’re like, and you’re holding on trying to find the right therapies, the right doctors, people just want to give you medicine. Here, take this pill. And then, you know, I had a very, very volatile child who had a lot of behaviors. And they got through a lot of research and getting where I need to be now she’s much less volatile, because she was on so many medicines. So I want to teach people how to go instead of digging. In Texas, where I’m at, there’s a list with your county MHMR. I didn’t know that. My daughter was on the list for nine and a half years. So we had nine and a half years of struggle. Finding doctors, the right therapies, can we afford this? Can we afford that? You know, I’ve lost cars in the past, financially. So it’s just now seeing where I am now. And where I was, is, it’s almost like a miracle in the sense. And for me, I want to tell people I’m 61 now, and I got into this two years ago, so I’m so much, I’m so behind the game. Where younger people if they talk with an advisor, they I can get everything established now. So when they’re 61, they don’t have the struggles, or the fears of where we’re going to be at. So very soon, very soon, I feel like this year, there’ll be a program out on how money works for special needs families, along with brochures. So we were in the making of that, and I’m so ecstatic to share that with people.
Emmalou Penrod
Yes. And you brought up a very valuable commodity. And that’s time.
Karen Phipps
Yes.
Emmalou Penrod
You know, the advantage of starting to put money away in your 20s, as opposed to waiting until your 60s.
Karen Phipps
Yes. Because we have that, I believe, just like me, the majority of people that have that, I want it now.
Emmalou Penrod
Yeah, yeah,
Karen Phipps
We need that now. And I see that even with younger ones now. They want what their parents have, but they want it now. And their parents probably didn’t have that when they were young, when the kids were young. So it’s that mentality. The exciting thing is to put in this beautiful book, which is the most simplest book, that is the easiest read. I’ve been taking it around to my local schools. And they are ecstatic about it, because we know they don’t teach that in school. And so if a child, even 14 years of age, can read this, and they start working on those finances, those children are going to be so well set for retirement that it’s just going to be amazing. So and I am so excited to be in this business. It’s a business of love. I’ve never been in a group that has been so helpful with each other. I love this team. I love what it stands for. And I always have to speak on this because, years ago God gave me this scripture, and it’s been my theme song ever since. And it’s Philippians 4:13. And it’s, I can do all things through Christ. I can do everything, only through him. And that’s what guides us every day. So I love that because this group, I can trust that when they tell me something, it’s for my betterment, not for someone else’s. Because Jane did. When I first met Jane, and we talked about finances, and she went over our finances, which when you have to sit down and go over your finances with people, especially if you’re illiterate, it’s very, you feel very demeaned. You feel bad about yourself. You don’t really want to tell them because it’s like “Oh,” but Jane sat with me. There was no judgment. My husband is a retired firefighter. And so she looked at his stuff. And I thought, it’s always a good test. I’m like, yeah, we’ll see if she wants to move it or what? No, she told me leave it where it’s at. It’s best suited where it’s at. I mean, that sold me right there. Because trust me, we’ve had people say, “Oh, well, let me take that, handle it for you and put it over here.” And you know, we didn’t, thank God.
Emmalou Penrod
You knew she had your best interests at heart.
Karen Phipps
Yes, it’s a company of integrity and character. And that’s what I’m about. I love that.
Emmalou Penrod
You mentioned earlier that where you are now compared to where you were before, can you explain, what are some of the specific advantages? How you have seen your life improve, your family finances improve?
Karen Phipps
Yes. Because you’re aware. The one thing about reading this book, about the five elements, the seven steps, you become more aware. It’s like an awakening to your money. And it’s like, “Oh, okay, now I understand what an emergency fund is.” Now, I understand what that savings putting it here or, I mean, all of these annuities, you know. It’s like, “Oh, wow, okay.” Because if you’ve never heard about that in your life, it’s like, a language you do not understand. So with the help of the book, with the help of an advisor, Jane, it really helped me to realize when I do get paid, what I take this money and how I allocate it for things. So is it in the right place? And it’s really kind of helped me from being a shopaholic. You know, I mean, it really sets me realizing, is this worth it? Or should I put it over here? And I will tell you, another thing that awaking is, as we age, our parents age. And when we see, like for us my in laws right now, I would not have been as prepared to help them. They’ve had a very big struggle right now going on through my education with how money works, I’ve been able to direct them and help them in their navigation. And that’s empowering.
Emmalou Penrod
Oh, yes, definitely. And money gives you options. You mentioned your daughter, you know, having to take her out of a school. You have options, if you have funds allocated for her. And what peace of mind that brings to know that you are going to be able to meet her medical and educational needs.
Karen Phipps
Well, here’s one of the biggest fears for parents with special needs. Not only just the typical kids, but when you have a special needs that needs your 24 hour care, you think about what’s going to happen and I’m no longer here.
Emmalou Penrod
Yeah.
Karen Phipps
Who’s going to care for them? Where were they be? And right now, I mean, as I try to research as much as I can. And around here, there’s some great places for people with disabilities to live. These places are not paid for by your government funds, It is a personal pay. So if someone like my daughter, who’s on Medicare, who has a HCA program, which is a home and community, community base program, that helps pay for her carrier. If you don’t, if these things, don’t follow them into some of these programs. I mean, they’re really big, they’re beautiful, they’re awesome. But they’re expensive. And so I know, as of today, if the Lord took me home today, it’ll probably cost my daughter, being 27–and actually, her health is good. It’s just everything else. It will probably take about a million dollars for her to live out her life right now. And so if I don’t start working for that, her choices are going to be the state school. And that is not pretty. So and I would hate that life for her because it’s not a life, they’re going to teach her and work with her. It’s going to be existing, and not to put the state schools down. I’m glad they’re there for people. It’s just not the fit that I want for my daughter.
Emmalou Penrod
It’s being able to have the choice.
Karen Phipps
Yes.
Emmalou Penrod
Being able to choose. You know, some people live in a smaller home, because that’s what they chose. But wouldn’t it be nice to live in a larger home? If that’s what you want?
Karen Phipps
Exactly. Exactly. You know, knowing how your money works is empowering. And it gives you a future, gives you hope. You don’t have that depression. I know. And I say that literally this there was so many years, I was so depressed. And our daughter is not our biological daughter. She actually came to live with us when she was seven years old. And so there was a lot of depression in those years that we first got her and it’s kind of like, “Oh, I don’t know what to do with her.” Because, you know, I read up on autism and I thought, I got this. I got this did not happen. You can say someone has autism, but it’s like say, somebody has freckles. It’s all different kinds of freckles.
Emmalou Penrod
Yeah, oh, yeah, theory and practice, the difference between theory and practice. And you’re right, if you know one person with autism, you know, one person with autism. It’s so individual.
Karen Phipps
Yes, and then trying to work our life out for hers and how we do this. And I mean, she was born in my heart the first day I laid eyes on her. So you know, she is mine. And it was, but it was a struggle. And I know, there’s parents out there who are going, “I don’t know if I can do this again. I don’t know if I can do it another day.” I’ve been there. It’s like eating an elephant. Can you eat an elephant? Yes, but only one bite at a time. So for some, for me in some of the years, early years. It was one hour at a time. Some was one minute at a time. And then as I just, and I had, I did a lot of prayer. I will tell you God really, every time I cried out, provided something, either a door open for something or whatever and so I, and having a great husband, too. For most people, when they have a child born into their family with special needs, there’s a high percentage of divorce, very high.
Emmalou Penrod
There is, very high, very high. And you mentioned something a while ago that is vital. It’s stressful enough caring for a child with special needs. It’s much more emotionally taxing. So if you if you can take out the financial piece, if you can take out the financial stress, it really makes a difference.
Karen Phipps
It does. It does. My husband and I were one of the odd couples, because it brought us closer together. My husband and I had been married for 10 years, I mean, not 10 years, seven years. And we both had been, we both had children from another marriage. And we did not know how to work together as a team. We were arguing all the time. And then this little girl comes in. And now we have to learn to be a team. It wasn’t easy. We’ve had a lot of, we’ve had just a lot of working on as a team, that tag team. And as time has gone on and learning this, once again, there takes that struggle off. Finances is such a huge thing that people, because you know, are we going to keep keep our car today or they’re going to turn the lights off today. I don’t have this. I don’t have that. And so when you get that financial plan going, and sit and make a budget when Jane finally did that with us, and we saw it, and we tried to live it. Wow. So much easier. Yeah, you don’t pull your hair out as much.
Emmalou Penrod
So you have all of this experience, the wisdom you’ve learned along the way that you have to offer for parents who have a child with special needs. You can help them in so many areas. And then you have that book, that How Money Works book that as you, could you just open some of the pages so they see. It’s not heavy reading. Yes, it is written very direct a lot of times. Yeah. But there are lots of pictures, illustrations. Sometimes we think of financial education as being a lot of technical terms and numbers. This makes it fun. And I think your personality resonates with fun, right?
Karen Phipps
Yes! So I take all of my life situations, losing my vehicles, I always call it, I don’t have any skeletons in my closet because I took the door off. Yes, I’ve lost cars in the past. I’ve had to leave a house because I couldn’t pay the rent, and the longer job changes, all of that. And you know what? I own it, because it’s made me who I am today. I’ve learned the struggle. And now I’ve learned how to get over the struggle. And that’s why I want to help other people.
Emmalou Penrod
Yeah. I love it. I love it. Karen, you are a valuable resource for parents. How do they contact you?
Karen Phipps
Yes, they may contact me at Karen.Phipps@wealthwave.com Or if they want to look up the company and see where I’m at, they can look up Wealthwave at wealthwave.com/KarenPhipps and they can look at our web page and then my phone number. Do I give out my phone number? Is that okay?
Emmalou Penrod
That is entirely up to you.
Karen Phipps
Yes, I may not always answer but I tell people leave a message. But my phone number is 940-368-9120 A lot of different special, special parents, what I just lost the word. See this is why I make it fun.
Emmalou Penrod
Parents of children with special needs.
Karen Phipps
Yeah, I tell you I call it squirrel syndrome. They’ve never made it official. But yes, I have. I have squirrel syndrome. But anyway, I’m on those and I hear, I see a lot of people’s needs. I actually have a lady I’m going to research today who is needing some equipment and the government won’t help her with it because her van is over five years old. I find that absolutely ridiculous. Because if you put accessories on a van, they could be changed to another van. So I don’t understand, but it’s just, so this lady is desperate. That’s what my my goal is today. Build a relationship where they know that you’re there to help. They have to trust, then they will open up with their finances to you and hopefully let you help them there.
And you sound like a real problem solver.
I don’t always get to solve all the problems, but I understand the pain and I will work hard to try to find those resources.
Emmalou Penrod
Oh, wonderful. Wonderful. Karen, thank you so much.
Karen Phipps
You’re so welcome. Thank you for having me here.
Emmalou Penrod
Sharing your words of wisdom and you have a great day.
Karen Phipps
I will. Thank you so much. Bye bye.