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How Should a Representative Payee Spend a Child's SSI Benefits?

Today we will be addressing a question that came to us through our interactive disability forum. If you have a question regarding any part of the Social Security Disability application process, leave it in the comment section below so that we can answer it in a future blog post. Today’s question is:

How should a representative payee spend a child's SSI benefits?

As the representative payee for your child’s Supplemental Security Income (SSI) payments, you are responsible for using the funds appropriately and for keeping accurate records of how the payments are spent.

Standard monthly benefit payments can be managed and used in certain ways, while significant back payments of retroactive benefits must be handled differently.

Dedicated Accounts for SSI Back Payments

If your child has recently been approved for SSI and is due a large back payment of benefits, then you will be required to open a dedicated bank account for the funds and the use of those funds will be subject to very specific restrictions.

  • The dedicated account must be a separate checking, savings, or money market account from the one that is used for standard monthly SSI benefits.
  • The funds in the account must be maintained separately from all other funds, including monthly benefit deposits from SSI.
  • The back payment funds cannot be used to purchase stocks, bonds, CDs, or any other form of secured or unsecured investment.
  • The account must be registered showing your child as the owner of the funds and any and all interest that may be accrued on the account.

Funds from your child’s dedicated account can be spent only on the following:

  • medical treatment and related expenses
  • educational expenses, including job and skills training costs
  • special equipment, skilled nursing assistance, home modification costs, and rehab or therapy expenses

Legal fees due to the attorney that assisted in your child’s SSI claim can also be paid from this account.

Regular Monthly Benefit Payments

Your child’s regular monthly SSI payments can be deposited into your standard savings, checking, or money market account, but you will still need to accurately track the manner in which those funds are spent and report that information to the SSA as required.

Monthly benefit payments can be spent on everyday living expenses and daily support needs. These can include any and all of the items listed under the authorized Dedicated Account spending, as well as the following:

  • food
  • clothing
  • shelter
  • insurance costs
  • medical care
  • child care expenses
  • furnishing
  • personal comfort items

Keep in mind that the above listed items can only be used for the child earning the benefits.

Any monthly benefits that are not needed to pay for your child’s current-month expenses must be saved for future use. Many people find the easiest method for keeping track of their child’s benefit balance and spending details is to have a separate checking and/or savings account specifically for monthly SSI payments.

Periodic Spending Checks

The SSA conducts periodic checks on the spending practices of representative payees. Typically these reviews happen once a year. However, the SSA may require reporting as often as every three months for the duration of your child’s SSI eligibility.

If you aren’t sure if you are spending your child’s benefit payments correctly, you should contact the SSA representative who handles his or her claim. If a child’s payments are spent incorrectly, the representative payee may be required to reimburse any funds that were misused.

Please leave any Social Security Disability questions in the comment section below so that we can answer them in a future blog post!


If I know someone that has two child that gets disability and she basically uses the money to buy her New clothes and goes out to eat n take two vacations a month with their check after she buys them only one or two suits of clothes with them what should I do can't she get in trouble for that

Hi Chad,
Are you confident she isn't spending her child's SSI benefits on the child? My concern would be to risk the child losing his/her disability benefits due to a false accusation. If you're 100% sure that she is misusing the child's benefit, you could report this at 1-800-772-1213.

My children recently received a check (2 months prev) for disability benefits they are entitled to due to their father recently being disabled (we are no longer married). Moving forward, their money will be deposited to a debit card for use on their expenses. For this particular first time check for them, can I deposit into my account and use for current expenses immediately or am I required to save this into a completely separate account as a "savings" since it is 2 months backpay. I read that 6 months or more should be a designated account but less than that can be deposited and used. My children have expenses for food, shelter, medical, clothing this month that this can be used for being that it's only 2 months worth (kids are not disabled - their dad is) but I was not sure if I needed to save this and wait until next month to be deposited into the debit card. Thanks for your help!

Hi Laurie,
You should definitely put this in a separate account. Because they're receiving auxiliary benefits the SSA will likely not be as strict with back pay, but because they're children, it's better to be safe than sorry.