Are you considering adoption, but are unsure whether you can afford it? Adopting a child can be an incredible journey and it’s not without considerations, but expenses shouldn’t have to stop you. The costs of adoption depend on your unique journey—whether it’s domestic, international, or through the foster care system—and, it’s crucial to be prepared. Creating a budget for adoption will help ease stress and keep you focused on the joy of expanding your family. Here are our tips on budgeting to grow your family:
1. Research the Costs
Adoption expenses can vary widely based on the type of adoption you choose. Private domestic adoptions typically range between $20,000 and $50,000, while international adoptions may cost more due to travel, legal, and agency fees. Foster care adoptions can be less expensive than international adoptions and some private domestic adoptions. Make sure to research the associated costs of your chosen route, including legal fees, home study expenses, birthmother costs, travel expenses, and post-placement support.
2. Create an Adoption Savings Plan
Once you understand the costs associated with your chosen route of adoption, it’s time to start saving. Creating a separate adoption savings account can help you keep track of your funds. Set a realistic savings goal based on the estimated costs and your timeline. Consider automating a portion of your income to be deposited directly into this account each month. Additionally, crowdfunding campaigns and other initiatives are great ways to raise money for your adoption journey. Creating a cohesive savings plan will help make sure you take the necessary steps to meet your adoption expenses.
3. Explore Financial Assistance Options
Many adoptive families qualify for financial assistance that can make adoption more affordable. There are organizations across the country and the world that offer grants to help offset adoption expenses. These grants can range from smaller grants of $2,000 to larger grants covering $20,000 of expenses. Additionally, some companies offer adoption assistance as part of their employee benefits package. There are many different financial assistance options available—with a little research and conversations with those around you, you may have greater access to adoption-related financial help than you know.
4. Take Advantage of the Adoption Tax Credit
The federal government offers an adoption tax credit to help ease the financial burden. For the 2023 tax year, the adoption tax credit allows adoptive families to claim up to $15,950 in qualified adoption expenses. The credit is non-refundable, meaning it can only reduce your tax liability, but it can still be a significant financial relief. Consult with a tax professional to make sure you’re taking full advantage of any tax benefits available to you.
5. Plan for Post-Adoption Costs
It’s easy to focus solely on the costs of the adoption process, but don’t forget to budget for post-adoption expenses. Once your child is home, there may be additional costs like medical care, counseling, or travel if you’re adopting internationally. Beyond the costs directly related to the adoption, you’ll have another person at home meaning you’ll have additional household expenses like groceries, utilities, entertainment, and more. Be prepared for these costs to ensure you’re financially stable long after the adoption is complete.
While adoption can be a significant financial commitment, it is manageable with proper planning and budgeting. By researching costs, creating a thorough plan, exploring financial assistance, and taking advantage of tax benefits, you can focus on what really matters—growing your family. With the right preparation, you’ll be ready to welcome your child into a loving home. At Herrin & Leach, we’re here to advocate for your family and guide you to the resources that help you navigate your adoption journey. Reach out to us if you have any questions about your adoption journey.