Sara Bailey’s adoption experience began when she connected with an adoption agency, paid for a parent’s course, and advertised her mother who gave birth for a year.
In 2014, due to an unsuccessful adoption, Bailey began paying $ 340 per month for each failed adoption.
“I didn’t expect monthly fees,” says Bailey, director of mental health programs. Indianapolis .. Bailey was disappointed as the cost continued into the second year of the planned annual process.
“For me, there was a point where I almost gave up,” she says.
She persisted, and in 2015 Bailey paid over $ 22,000 to adopt her son.
According to the Child Welfare Information Gateway, a department of the Children’s Department under the Federal Office of the Department of Children and Family Affairs, adoption costs for private institutions can range from $ 20,000 to $ 45,000.
Fees can include statutory fees, home study to ensure the safety of your living space, and counseling.
However, adoption can include unforeseen costs, such as the cost of living for a pregnant mother and hospital costs. It depends on the agency, state and adoption schedule.
Experts recommend that families plan ahead and use several types of financing, from financing to debt, to manage costs. The strategies to consider are:
Start with a plan
If you work with an adoption agency, you will usually receive a cost list before you apply. You are the adoptive parent and Certified Financial Planner of Pomegranate Financial, a Utah-based financial planning company. Blake Jones, the founder, says.
Use this information to create a schedule of expenses incurred between the next 6 and 18 months before signing your adoption application.
Next, Jones advises you to look at the resources you have access to (savings, home equity, grants) and adjust what you have when you need it.
Marta Shen, Certified Financial Planner for Raymond James at Spring Street Financial, says accumulating savings is the best option. Atlanta An adoptive parent who advises a client on managing adoption costs. Paying off a loan on top of a new parent’s expenses, like child care, can be financially stressful, she says.
Asking others for help
During the adoption process, Bailey turned to the community to help raise funds.
“I bought the puzzles and sold the pieces so that people could be a part of my child’s life,” she says. “Everyone who bought it gave the back a name.”
The completed puzzle is now in my 6 year old son’s room. This is a reminder of all the people who helped connect them in 2015.
“We did GoFundMe on social media, so many friends, church members and other family members donated there,” Johnson said. Since the adoption, Johnson has started a non-profit organization that provides grants to help other black families adopt their children.
Apply for an adoption grant
Adoption grants (funds that do not need to be repaid) are another way to finance adoption. Helpusadopt.org and the Giftof Adoption Fund offer grants to cover adoption costs.
These organizations need to review eligibility timeframes and conditions, such as parental status and financial need. When submitting your application, you may be required to pay a fee, provide reference documents, and provide proof of approved home study.
Home equity lines of credit provide access to cash based on the value of your home. It allows you to withdraw money and pay it back every month. Shen says it’s more flexible than a loan.
Some people like a certain amount they know they have to repay, such as a lump sum on a personal loan, while others are fine with HELOC’s revolving line of credit. If you don’t know in advance how much you need from a parent, HELOC may be a better choice.
Personal loans can be a last resort
If you are underfunded, don’t qualify for a grant, or don’t own a home, you may want to consider a personal loan. Borrowers on credit may be subject to interest rates of 12% to 17%.
Before taking out a loan, make sure your monthly payments are compatible with your budget.
Shen advises her clients to avoid too many financial obligations that could weigh on the new family.
This article was provided to The Associated Press by the Nerd Wallet personal finance website. Chanell Alexander is a writer for Nerd Wallet. Email: [email protected]
NerdWallet: What is a personal loan? https://bit.ly/nerdwallet-personal-loans
More than $ 20,000 to expand your family? Adoption Payment Methods Indianapolis Black Florida Email Atlanta
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