How Much Does It Cost To Be A Foster Parent

Financial Guide to Being a Foster Parent

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Jessica Fifty. Lloyd-Rogers

Becoming a foster parent means providing a kid in need with a welcoming and secure home. An open heart and a loving home are just the beginning of what is required to be a foster parent. Someone who wants to open their life and dwelling to a foster child needs to exist financially prepared. While states provide some financial assist to foster parents, it is non enough to cover all of the expenses involved with raising a child, even for a short amount of time.

Learn more nigh financial considerations of becoming a foster parent, how to prepare a home for foster children and find the right domicile insurance, what to expect from authorities aid programs and financial planning tips for foster parents.

Foster Care in the U.s.a.

At least 250,000 children are placed into the foster intendance system every year in the U.S.

The average child spends 14.7 months in foster care.

Information technology costs an average of $1,081 to raise a child per month and it increases as they get older.

Sources: Child Welfare Information Gateway and the U.S. Department of Agriculture

Preparing Yourself Financially As a Foster Parent

Foster parents typically receive state subsidies to cover expenses such equally food, housing, clothing and transportation. Nevertheless, children have many experiences and needs beyond being fed and dressed. You'll need to be financially prepared to potentially pay out of pocket for things similar field trips, sports, camps, vacations, school pictures and even the higher utility bills that can come from having another person living in your home.

Financial Planning and Budgeting

Earlier you make up one's mind to foster a kid, you'll desire to consider all the potential costs involved and create a budget to make sure you're financially prepared. Afterward you've added upwardly all of your income and factored in your current expenses, you'll have a clear idea of how much money you take available to help with fostering a child. You can compare that to the typical average price of items below to commencement budgeting to be a foster parent.

Food

Boilerplate Toll: $177–$250 per month

Depending on the age of your foster child, food can toll anywhere from $177 a month for immature children to $250 a month for teenagers.

Child care and educational activity

Average Toll: $5,436–$24,243 per year

Child intendance and educational activity costs will vary depending on where you live. Start by learning what the local child care costs are in your area so you can budget for this expense.

Wellness care

Boilerplate Price: $i,152 per year

The average wellness insurance premium in the United States is $1,152 per twelvemonth. Most foster children qualify for Medicaid, but you may need to budget for any additional health expenses that your foster kid might need.

Housing

Average Cost: $500–$2000

Your foster child will require a dedicated, prophylactic sleeping space. If you practise not already take a chamber set upwards for the child, you'll demand to create one.

Diapers

Average Price: $565–$620 per year

If yous're fostering a infant, y'all'll be responsible for diapers, which can get expensive rather quickly. Purchasing in majority tin can typically relieve money on diapers.

Estimator

Average Cost: $500–$1500

Near children demand a calculator or laptop to exercise their schoolwork. A laptop and other school supplies could price between $500–$1500 depending on the type of technology purchased. To relieve money, you could consider buying a refurbished computer.

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School photos

Boilerplate Cost: $fifteen–$100

It comes around every twelvemonth, and the costs are always surprising. Unless your foster child is merely with you for the summer, you lot may demand to budget for school photos forth with other incidental expenses that come at schoolhouse, such every bit field trips and grade parties.

Vacation

Average Cost: $i,145 per person

A vacation is not a necessity, merely many foster parents want to share this experience with their foster child. A typical vacation cost $1,145 per person, so you'll demand to consider the extra person when budgeting.

Foster Parent Requirements

In that location are some basic but essential requirements to become a foster parent. States desire to ensure that you can financially care for the child and provide a salubrious and safe habitation. Foster parents are required to get through some basic preparation.

In that location is no specific income requirement to go a foster parent, simply you volition need to bear witness that you are in a good financial position to provide for a foster kid. Your state may ask for your previous and electric current pay stubs and tax returns to show that you can pay for basic needs such as mortgage or rent, utilities, food and clothes for a foster child. Some states may have specific foster parent income requirements, but mostly they desire to clinch you have enough money to meet the family'south needs.

At that place is no fee to become a foster parent, but in that location are a few costs that you may incur to see state requirements. You lot'll demand to complete pre-service training and will demand to make sure your home is set and best suited for fostering. This volition almost likely require fire and department of health inspections and may include home upgrades which are all expected to be paid out of pocket.

While you don't demand a skillful credit score to foster a kid, the number could bear upon your awarding. Families with a low credit score will need to prove they take sufficient family income to foster a child. This income must be separate from the reimbursement that you'll receive from being a foster parent.

The country volition allow you to adopt a child if you have debt, but it's your responsibility to properly budget to provide for the foster kid. You will need to bear witness that adding a child to your home will non be such a significant financial burden that you cannot provide a practiced domicile.

Average Cost of a Child per Year

According to the U.South. Department of Agronomics (USDA), it costs an average of $12,980 to care for a child per yr for a heart-income family that makes between $59,200-$107,400 annually. The largest portion of this money goes to housing, food, child care and educational activity.

What's the Price Look Like?

The more income a family unit earns, the more they will likely spend on child care and child-rearing costs. According to the U.S. Department of Agriculture, middle-income married couples volition spend $233,610 in child-rearing expenses on a child from birth to historic period 17. A low-income married couple will spend closer to $174,690 to raise a child, while a depression-income single parent will spend even less at $172,200. The cost to heighten a kid also increases every bit a child gets older. On boilerplate, it toll $900 more to raise teenagers betwixt the ages of xv–17. This is because of the addition of transportation and vehicle insurance for teens as well as needing more food.

Getting Your Home Fix for Foster Children

An illustration of a young man and woman standing in front of their home and hugging their foster child.

Function of the joy of being a foster parent is providing a safe, comfortable and inviting dwelling house for your foster child. Fortunately, orientations and pre-training will provide insight into how to set up your domicile. You can also follow these tips to create a domicile environment that will be welcoming and condom for foster children.

Home Study Requirements

Every foster parent must get through a abode written report conducted by a state agency to get approval to foster children. During this study, your state'south child welfare organization will provide a representative to do a thorough inspection of your living environment to clinch that the foster kid placed with you volition exist living in a rubber, nurturing domicile. While the laws and policies for approval a foster family vary significantly from state to state, y'all tin can use this general checklist to gear up for your in-home visit.

Home Grooming Checklist

Home Visit Forms and Documents Checklist

State or federally issued ID Birth certificates of people living in the home
Social security numbers of people living in the habitation
Union certificate
Proof of citizenship or legal immigration
Proof of income
Proof of employment
Medical records
Immunization records
Pet vaccination records for pets in the dwelling house
An autobiographical statement

Home Inspection Checklist

Functioning smoke alarms and carbon monoxide detectors
Gates on stairs
Covered electrical outlets
Secure, locked windows with screens
A first-aid kit on hand
Firearms out of attain and locked up
Operation heating and cooling
No pb paint
A safe yard with proper guardrails effectually any decks or pools
Condom, operation appliances
Child-proofed corners on article of furniture

Housing Grants

To support and encourage more than families to open their homes to foster children, the U.South. Department of Health and Human Services department provides subsidies to foster parents through grants provided to state agencies. These stipends for foster parents provide regular payments to assist pay for costs related to caring for a foster child including housing, food, article of clothing and transportation.

Another popular grant for foster children is the Family Unification Program. Rather than providing housing for foster families, housing choice vouchers are provided to families who lack acceptable housing to receive their children back after being in foster care or are in danger of having their children placed in foster care because they lack acceptable housing. The program also provides housing vouchers to youths who accept anile out of foster care and are transitioning to independent living.

Home Insurance

Abode insurance might not be the first thing that comes to heed when you lot're considering becoming a foster parent, but some added risks could arise. As a foster parent, yous could open yourself up to lawsuits from incidents that could come up from your foster child while at your home. For case, the child could slip and autumn past your puddle or cause property damage to your home. There'southward also the risk of allegations of improper care.

Many insurance companies offer additional liability insurance for foster parents. Yous can also increase your property insurance and add together boosted dwelling insurance endorsements every bit you add another person to your dwelling.

Agencies exercise not care if you own or rent a dwelling house or an flat. They're looking to see that your living situation is suitable to bring a foster kid into your dwelling. No matter your dwelling blazon, foster homes must comply with local zoning, building, fire and safety codes, be kept in adept condition, sanitary and free of hazardous conditions and materials. Dangerous items similar firearms, medications, chemicals and tools must be locked and stored somewhere inaccessible to children.

Assistance and Support While Beingness a Foster Parent

An illustration of a young couple walking home while holding hands with their foster child.

Parenting a child is rewarding and challenging. Opening your habitation to a foster child is a selfless act that tin can significantly impact that child's life. Fortunately, there are a diversity of help and support services available for foster parents. From tax credits to reimbursements for transportation and medical expenses, states have worked to go far manageable for those who want to foster children to do then.

Foster Care Taxation Credit

In that location are a few tax breaks available for foster parents. Financial assistance for foster parents is non counted every bit income on federal taxation returns, and then it is not taxable. This includes payments from state or federal regime agencies and child placement agencies. You may exist able to revenue enhancement your unreimbursed foster care expenses as a charitable donation if you lot itemize deductions. If the agency or organization that placed the child with you tin receive charitable contributions, you tin can catalog those unreimbursed expenses. Additionally, you may be able to merits the child as a dependent on your taxation return, which tin too lower your federal tax obligation.

Foster Parent Benefits

Some additional benefits may be bachelor to foster parents, including back up for everyday expenses outside of the ordinary.

Contingency funds: In Virginia, the Virginia Department of Social Services provides foster parents with a contingency fund to help pay for whatsoever property damage that foster children may crusade. Many states likely provide this benefit. Check with country representatives.
Free school lunches: Many foster parents can enroll foster children in the free schoolhouse meals program regardless of their income.
Respite intendance: Respite intendance is brusk-term supervision should an emergency result in the temporary disability of the foster parent to care for the foster child.
Reimbursement for clinical assessments: Some states volition reimburse foster parents for any clinical reports or behavioral evaluations performed on the foster child. Check with local and state representatives.

Foster Intendance Wearable Allowance

Boilerplate Allowance: $200–$500 a month

The benefits volition differ by state, simply most foster children and parents will get a monthly clothing allowance. This assart ranges from $200–$500 a month depending on state regulations and the foster child's age.

Foster Care Medicaid

Nigh children in foster care are insured through Medicaid through Championship Four-E of the Social Security Act or state laws requiring Medicaid coverage to be extended to children age 19 or younger whose household income is less than 133% of the federal poverty line. Medicaid benefits are distributed through local agencies to foster families and children.

Transportation Reimbursement

Boilerplate Reimbursement: Varies

If you have to transport your foster child to required appointments, or the child is of legal driving age and has to transport themselves, you may qualify for transportation reimbursement. Most states have private transportation reimbursement programs for children using public transportation or mileage reimbursement for necessary travel to school and other locations.

Foster Parent Reimbursement

Average Reimbursement: $20 and $25 per twenty-four hours or $600 and $750 a calendar month

Every foster parent volition receive a specific amount of money per child. This varies past state, the number of foster children and the ages of foster children. The boilerplate is between $twenty and $25 per day, or between $600 and $750 a month.

Enhanced Maintenance Payments

Some children require boosted daily intendance, such as those with disabilities or special needs. In these cases, foster parents tin apply for enhanced maintenance payments to help cover these additional expenses. Parents will need to apply for enhanced maintenance payments through their state agency, and the agency will determine if additional payments will be given.

Expert Insight on Financially Preparing to Be a Foster Parent

What are the nearly common out-of-pocket expenses for foster parents?
People tend to recall that fostering a child is a significant financial commitment. Can you elaborate on the true fiscal commitment and why individuals should still consider fostering?
All of this leads to a final and essential question: Why would anyone get a foster parent?

Jessica L. Lloyd-Rogers

Chair of The National Foster Parent Clan Council of Country Affiliates and President of Oregon Foster Parent Association

John DeGarmo

Leading Foster Care Expert and Founder of The Foster Care Establish.

Resources for Foster Parenting

Many resources are available for those considering becoming a foster parent. Whether you're unsure where to commencement or looking for financial assistance, the following resources can steer you lot in the right direction.

HUD Foster Youth to Independence (FYI) Initiative: A housing assistance program designed for foster children who age out of the system and need somewhere to live.
National Quango for Adoption: Some foster families may make up one's mind to prefer their foster children. This NCFA page provides information on how to get started on the process of adopting from foster care. NCFA as well provides resource, education and advancement for individuals and organizations to assist children grow and thrive for more than 40 years.
National Foster Parent Association: A nonprofit defended to providing foster families with opportunities for advocacy, networking and education.
Parent Training and Information Centers: This link provides a list of the more than 100 parent centers located throughout the United States. It likewise offers additional resources and assist for foster parents who are fostering children with disabilities.

Nearly the Author

sources

Heart for Health Care Strategies . "Medicaid and Children in Foster Intendance." Accessed Apr 12, 2021 .
Children's Rights . "Foster Care." Accessed April 12, 2021 .
Internal Revenue Service . "Tests for a Qualifying Child." Accessed Apr 22, 2021 .
U.S. Department of Agriculture . "Official USDA Food Plans: Cost of Food at Home at Iv Levels, U.Due south. Average, March 2020." Accessed April 12, 2021 .
U.S. Department of Agronomics . "The Toll of Raising a Kid." Accessed April 12, 2021 .
U.S. Department of Health and Human Services and Administration for Children and Families . "Foster Intendance." Accessed April 22, 2021 .
U.S. Section of Housing and Urban Development . "Family Unification Program." Accessed April 22, 2021 .
1040.com . "Tax Guide: Foster Parents." Accessed April 22, 2021 .

Source: https://www.moneygeek.com/financial-planning/managing-finances-as-a-foster-parent/