What Can a Representative Payee Spend Money On?
- Purple
- Aug 20
- 2 min read
If you’re serving as a representative payee for someone who receives Social Security or SSI benefits, you’re likely asking: What exactly am I allowed to spend this money on?
This article will cover:
The payee’s main responsibility
What expenses are allowed
How to handle extra money
What you can’t spend funds on
Why recordkeeping matters
How Purple helps you stay organized
Let’s walk through it.
1. Your Primary Responsibility as a Payee
As a representative payee, your core job is to use the funds in the best interest of the beneficiary—not yourself, not their family, not anyone else.
That means meeting their basic needs first: things like housing, food, medical care, and daily living expenses.
2. What You Can Spend Money On
The Social Security Administration allows payees to use funds for:
Rent or mortgage
Utilities and household bills
Groceries and meals
Clothing and personal care items
Medical and dental care not covered by insurance
Transportation to appointments or community activities
Recreational items (as long as basic needs are met)
If the person lives in a care facility, you can use the funds to cover their room, board, and personal items.
You can also use the money to improve their quality of life: books, entertainment, internet, assistive devices, or special outings.
3. What to Do With Leftover Funds
If you don’t need the full benefit amount each month, the SSA expects you to save the rest for the beneficiary’s future needs.
Leftover funds should be stored in a dedicated savings account titled in the beneficiary’s name, with you listed as the payee. You’re not allowed to combine that money with your own or anyone else’s.
These saved funds can be used later for large expenses—like moving costs, medical needs, adaptive equipment, or emergencies.
4. What You Can’t Spend Funds On
Funds are not to be used for:
Your own personal expenses
Giving money to others
Paying debts that aren’t in the beneficiary’s name
Investment accounts
Anything that doesn’t directly benefit the person
Even if you’re a family member or caregiver, you can’t treat the funds as shared money. You’re legally obligated to use them only for the beneficiary.
5. Keep Good Records
Payees are often asked to complete annual reports for the SSA showing:
How much money came in
What it was spent on
How much was saved
Even if you’re not required to submit reports every year, it’s still best practice to keep a log of all spending and receipts—especially if the beneficiary has multiple needs or care providers.
Keeping things organized helps avoid disputes and protects you if the SSA ever asks questions.
6. How Purple Helps You Stay on Track
Purple is designed to make money management easier for representative payees.
With Purple, you can:
Open dedicated accounts for benefit spending and savings
Track transactions by category
Add notes and receipts to purchases
Manage multiple beneficiaries from one app
Export clean records for SSA reports
You’re doing important work—and we’re here to help you do it with confidence.