Private adoption in the U.S. is expensive, with some families paying up to $40,000 to add each new member. Fortunately, there are quite a few things that families may be able to do to reduce or even outright eliminate the cost of adoption. Below, we discuss some ways to financially prepare for adoption and steps you can take to defray adoption costs.
Financially Preparing for Adoption
The level of financial preparedness needed to adopt may depend, in part, on what type of adoption you're seeking. If you're hoping to adopt from foster care, you may not need as much of an adoption fund as if you're planning a private, international, or agency adoption, all of which may be more expensive. Some key steps include:
Researching Adoption Costs
There are several different expenses that go into agency and private adoptions. These include legal fees, medical payments to the birth mother, and other administrative or processing costs. Once you have a better idea of what costs to expect, you know how much you should have set aside before the adoption is finalized.
Creating a Dedicated Adoption Fund
Adoption may be nerve-wracking, and you don't want to add financial concerns on top of everything else you are dealing with. It is not common to be presented a bill for $40,000 when all is said and done. Rather, for most adoptions, these expenses crop up in dribs and drabs over the course of the process. Making a savings plan and setting aside funds into a dedicated adoption savings account may help ensure that you have access to funds when you need them, without putting unnecessary pressure on you to have the full cost of adoption ready before you even begin.
Planning for After Adoption
It may be common to focus more on the cost of adoption than the costs incurred post-adoption. Your health insurance premiums may rise, along with childcare expenses, grocery costs, and even your energy bills. Having a post-adoption budget sketched out before your adoption is finalized may help reduce any sticker shock associated with your new family size.
Reducing Adoption Costs
There are a few ways to reduce adoption costs as well. These include
- Applying for funds and grants. Many agencies and public entities offer grants and funding to help encourage adoption, while states may offer tax credits to newly adoptive parents.
- Planning an adoption fundraiser. It takes a village, and if your village has offered to help, a targeted fundraiser may provide just the right opportunity.
- Considering foster-to-adopt. While adopting a child from foster care comes with its own advantages and drawbacks that must be considered separately, it's often one of the most inexpensive ways to adopt a child.
No matter how you choose to expand your family, looking into these financing options may help defray some of the costs.
The opinions voiced in this material are for general information only.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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