Adoption can be a rewarding and life-changing experience for both the adoptive family and the child. However, the process of adoption can also be complex and overwhelming, particularly when it comes to the financial considerations involved. As someone who has personally navigated this journey, I understand the importance of careful planning and access to the right resources.
There are several routes to adoption, each with its own set of financial implications. Some examples include:
- Foster-to-Adopt: This involves fostering a child with the intention of eventually adopting them. While fostering itself often comes with financial support from the state, the other potential expenses such as college may still be paid out of pocket. However, many charities provide additional support beyond state benefits.
- Private Domestic Adoption: This route involves working with an adoption agency or attorney to adopt a child within the United States. Costs can vary widely depending on the agency, location, and specific circumstances, but can range from $20,000 to $50,000 or more.
- International Adoption: Adopting a child from another country can be a complex and expensive process, with costs typically ranging from $30,000 to $50,000 or more. Expenses may include agency fees, legal fees, travel costs, and foreign country fees.
In addition to the upfront costs associated with the adoption process itself, it's important to consider the ongoing expenses of raising a child. According to the U.S. Department of Agriculture, the average cost of raising a child from birth to age 18 (not including college) for a middle-income family is over $285,000.
So, how can you prepare financially for adoption? Here are a few key steps:
- Seek support and guidance. Connect with other adoptive families and resources, such as support groups or your local foster care system, to learn from their experiences and get guidance on navigating the experience and the financial aspects of the process.
- Research the costs specific to your chosen adoption route and location. Consult with adoption agencies and attorneys to get a better understanding of the expenses involved.
- Start saving early. Consider setting up a dedicated savings account for adoption expenses and begin setting aside funds as soon as possible.
- Explore financial assistance options. Depending on your adoption route and personal circumstances, you may be eligible for grants, loans, or other forms of financial assistance. The U.S. government offers a tax credit for qualifying adoption expenses, and many employers offer adoption benefits.
- Review your health insurance coverage. Make sure you understand what your health insurance plan covers in terms of adoption-related expenses, such as prenatal care for the birth mother or medical expenses for the child.
–
Adoption is a significant financial commitment, but with careful planning and the right resources, it can be a rewarding path to building or expanding your family. If you're considering adoption, I encourage you to do your research, explore your options, and seek support from experienced professionals who can guide you through the process. I would be happy to share my family’s journey.
Remember, while the financial aspects of adoption can be challenging, the rewards of providing a loving home to a child in need are immeasurable. To discuss your financial situation, please contact us.
This content is provided for educational purposes only, represents only a summary of topics discussed, does not constitute any personalized investment advice or recommendation, and represents only the views and opinions of the speakers which are subject to change without notice. Investing involves risk including the potential loss of all amounts invested.
This material prepared by Certus Wealth Management, LLC (“Certus Wealth”) is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Certus Wealth are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Certus Wealth, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Certus Wealth does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.
