Adoption is one of the most exciting things you can do to help a child in need and with added LGBT adoption rights, the process is more accessible to the masses then ever before.. It’s beautiful to bring a new child into your home and see them grow up and become a family member, but it can be a costly process. There are some common financial concerns that you may want to think about as you begin this journey. Here are the major expenses you can expect and how to revamp your budget to plan and pay for them without incurring any debt.
How much does it cost to adopt a child?
Adopting a child can be an expensive and lengthy process. It is estimated that the cost to adopt ranges from $25,000 to $50,000, with the average cost being around $37,000.
The factors that affect how much your adoption will cost include:
- Adopting domestically vs. internationally
- Counseling for you and the child
- Medical care for the birth mother
- Interim child care until the adoption is finalized
- Home visit fees
- Court costs and legal representation
- Travel costs for both you and the child
How to generate enough money to cover adoption fees
$37,000 is a lot for any family to spend, so it’s crucial your finances are in order before you do. Otherwise, you risk falling into debt and increasing your expenses beyond your means. Here are four tips to follow to get everything in order:
1. Get rid of your debt
The first thing to do is plan ahead by removing any extraneous expenses that are currently taking away your much-needed cash flow. If you have any outstanding loans or credit card debt, consider using something like this debt reduction calculator to create an actionable plan that gets you out of debt quickly so you can put that money towards adoption fees.
2. Adjust your budget
Once your debt is paid off, rework your budget to accommodate for the expected expenses. You may need to cut costs or take on additional paid work temporarily until you hit that total number, but remember, you’re doing this for a wonderful reason: to support a child in need and grow your family.
3. Use compound interest to grow your savings faster
Next, it’s time to ensure whatever money you’re setting aside is earning more money for you. Research the best interest rates for things like Certificates of Deposit (CDs), money market and savings accounts, or mutual funds. While putting the money into riskier investments like individual stocks could earn money faster, it’s typically too great of a risk for something so important. So, take the conservative route that earns you a slow but steady interest rate. The more you utilize the power of compound interest, the faster you’ll hit the amount you need to bring your kid home.
4. Look into benefits you may qualify for
Finally, research any potential benefits you may be eligible for, including state subsidies, government financial assistance, military benefits, employer benefits, and tax credits. Your income level may also qualify you for a sliding scale fee structure from the adoption agency, so ask if it’s an option as a fee adjustment could save you thousands.
The bottom line
Doing your research, making a budget, and setting a realistic goal for how you’ll pay the adoption fees is the only way to successfully bring your new family member home without incurring additional debt. Practicing solid financial habits now will go a long way toward showing your new child how they too can live a life debt-free once they’re an adult.
