After careful consideration of your family building options, you’ve decided to adopt. Part of your preparation was researching the costs of adoption. Adoption can be expensive. By now, you may have spent a lot on fertility treatments. You may need to get resourceful to pay for all the adoption related expenses.
You are prepared to pay the fees, but now have to answer questions about your personal finances to prove your financial stability on applications and during the adoption homestudy.
Be honest about your financial situation so that those helping you will know the boundaries and if there are any financial limitations of your adoption process options, as well as to be able to recommend financial resources, loans, grants, etc. should you need assistance.
Income
You will be asked the amount and sources of your income. This may include salary or compensation, investments, rental income, alimony, child support, etc. You will be asked if you plan on continuing to work, will take time off from work, will stop working or will change your work schedule and how this will affect your annual income.
Childcare expenses
If you will plan to return to work, you will be asked about new and expected childcare plans and costs. Perhaps your parents or a friend will help with childcare. If you will be using an in home childcare provider, nanny, au pair or out-of-home childcare, daycare provider or daycare center, you will need to show that you have the resources to cover such expenses.
Monthly and annual expenses
During the homestudy, there will be a thorough review of your monthly and annual expenses. The application will ask for customary amounts to show you have sufficient income to cover all current costs and discretionary income available to cover the costs of raising a child.
Loans
Mortgages, home equity, school and car loans all fall into this category. How much you owe, your payment plan, refinancing and payment history are all important.
Personal or business bankruptcy
If you were in financial difficulty in the past, it is important to review what happened and how you resolved this issue. You should be prepared to discuss what you learned about yourself and how you handle finances, what you have done to prevent this from happening again and what your current financial status is.
Covering adoption costs
You may be asked how much money you have set aside for the adoption. This is important for the professionals working with you to know in order to understand your options and how to design your adoption process. This would include how much you have set aside for advertising and networking, and travel expenses, as well as for birthparent expenses.
Family assistance
If you will be getting assistance from family (or friends) it is an important part of the financial planning for the adoption process and childrearing. Some agencies will require a letter from your parents or designated person indicating that they will provide such support.
Fundraising
If you are planning a fundraising event for the adoption, you will be asked how much you plan on raising and when you will have that money in hand. As monies are dispersed throughout the adoption process, it is important to know when the funds will be available. As a result, it may be necessary for you to raise the money before starting the adoption process.
Grants
If you will be applying for or have already been approved for an adoption grant or loan, it is important for the professionals working with you to know this.
Your financial picture is important not only for the adoption process, but for the childrearing years ahead. The professionals assisting you will use this information in designing your adoption process. This will include outreach to find a child, birthparent expenses, travel expenses and more. They may also be able to provide resources for loans, grants, fundraising, as well as information on the Adoption Tax Credit.
Families with all levels of income adopt. There is an adoption for every budget.
Click for more from Adoption.NET Executive Writer Kathy Brodsky