What Can You Spend Rep Payee Funds On?
- Purple
- 3m
- 3 min read
If you’re a representative payee for someone receiving SSI or SSDI, you’re responsible for managing their money — but you can’t just spend it on anything.
This guide breaks down:
What rep payee funds can be used for
What’s not allowed
How to prioritize spending
What to do with leftover money
How Purple helps track spending for SSA reporting
1. What Can Rep Payee Funds Be Used For?
The SSA is clear: benefits must be spent in the best interest of the beneficiary. This usually includes:
Rent or housing expenses
Utilities (electric, water, gas)
Groceries and food
Clothing and toiletries
Medical care and supplies
Transportation (bus fare, gas, Uber to appointments)
Personal comfort items (TV, phone service, recreation)
Basically, if the purchase helps the person live safely and comfortably, it’s likely allowed.
2. What Can’t You Spend It On?
You should never use the funds for:
🚫 Your own personal expenses (even if you’re helping)
🚫 Gifts, loans, or donations
🚫 Gambling, alcohol, or anything illegal
🚫 Expenses that don’t benefit the person directly
Even if you’re the parent, sibling, or caregiver — the money belongs to the beneficiary. Misuse of funds can lead to removal as rep payee or legal consequences.
3. What Should Be Paid First?
The SSA expects you to prioritize basic needs:
Housing
Utilities
Food
Medical needs
Once those are covered, you can use remaining funds for things like internet, phone, clothing, and entertainment — but only if the basics are met.
4. What If There’s Money Left Over?
Great question.
If the beneficiary receives SSI, any extra funds should be:
Saved in a dedicated savings account (keeping the $2,000 asset limit in mind)
Used soon for future needs (prepaying rent, buying supplies, etc.)
If the beneficiary receives SSDI only (not means-tested), there’s no asset cap, but you should still save responsibly.
Tip: You can also consider ABLE accounts to protect larger savings from affecting SSI eligibility.
5. How to Track Spending for SSA
As a rep payee, you may be required to file an annual report with the SSA showing how the money was spent. You’ll need to:
Keep receipts or records
Track how much was spent on housing, food, medical, etc.
Explain any large or unusual purchases
Show how you saved leftover funds
This is why having the right banking tools matters.
How Purple Helps Rep Payees Stay Organized
Purple is built specifically for people managing benefits — including rep payees.
With a Purple account, you can:
✅ Log spending and categorize it by type
✅ Upload receipts directly in the app
✅ Add notes to each transaction
✅ Export records for SSA reports
✅ Manage multiple beneficiaries from one dashboard (for orgs and families)
Open a Rep Payee Account With Built‑In Tracking
Protect the beneficiary’s funds — and your peace of mind. Purple makes SSA-compliant banking easier for everyone.
Purple is a financial technology company, not a bank. Banking services are provided by OMB Bank, Member FDIC. The Purple Mastercard® Debit Card is issued by OMB Bank, Member FDIC, pursuant to license from Mastercard.
¹ Early access is not guaranteed and depends on payer timing. We generally make funds available on the day we receive the payment file, which may be up to 4 days early for government benefits like SSI or SSDI, and up to 2 days early for other deposits. Early access is available at no additional cost.
² See our fee schedule for complete details