The Top 5 Ways to Actually Fund Your Adoption
This post is brought to you by Heather Featherston, who is the Vice President of Lifetime Adoption, a domestic adoption agency headquartered in Florida and providing services to adoptive parents and expecting mothers nationwide. To learn more about adopting a child or placing a child for adoption, call or text 800-923-6784 or visit Lifetime Adoption online.
Considering the Cost of Adoption
The reality is, adoption funding can be daunting! Many families of average means have funded their adoptions, and you can do the same, by following a multi-faceted funding strategy, so you can move forward confidently into your adoption process.
Once a family understands the process of adopting a child, often their next step is to figure out how to afford it. Here are the top ways to get you started on your adoption journey:
Create a Savings PLan
Create a savings plan for a specified about of time, such as six months or 12 months. Savings is a powerful way to quickly accumulate funds you can rely on, since you control your own spending. You can double down by picking up a second job for a short period of time, and allocating that complete paycheck to your savings. Increase your savings ability by cutting household expenses, just temporarily. You may also consider selling off unused or big-ticket items. The internet is filled with ideas for saving money and reducing expenses. For example, plan and prep your meals, so that there is an intention for every grocery item you purchase. You’ll spend less on convenience foods and takeout, and waste far less food, which is money down the drain every week! You can save hundreds each month, just on food alone, depending on your habits and the changes you make.
Asking Others for Help
Accepting contributions from close friends, family, and church members has the potential to catapult your adoption fund leaps and bounds beyond what you ever would have expected. Sharing your adoption desires with your close circle enables those who care about you the most to support you in your journey. They can also be a blessing to you in a financial way, if they know there is a need. Many times, well-meaning relatives and friends have no idea about the cost of adoption services. Having an honest and heartfelt conversation about your plans may result in generous contributions to your adoption fund.
Using Workplace Benefits
Check out your company’s benefits package for any monetary adoption benefits. Some companies offer adoptive parents anywhere from two to five thousand dollars toward the adoption, and sometimes more. Ask your human resources officer to look into this for you. Send an email expressing your interest in adoption benefits, and be sure to follow up if you haven’t heard back within a week. You'll also want to know if the company gives you the funds once the adoption is finalized, or once you can show receipts for adoption services. This makes a difference in how you financially plan for your adoption. Discuss your adoption benefits with your adoption agency. They can help you achieve clarity and plan the best use of these resources.
Borrow from your 401k
Borrowing from your 401k, and accessing other assets at your disposal have been very effective ways to fund adoption. Your financial representative may also offer an option to pay back the funds at a low amount over a long period of time, so that there may be little to no impact to your quality of life. This option is especially handy for adoptive parents who are several years away from retirement.
Be sure to get the ball rolling, as it can take several days, or even 30-45 days for funds to become available to you. Keep in mind, if the funds come to you in the form of a check, that check may also be placed on hold for several days before the funds are released to your account. This is common practice with most banks and credit unions, even though your accounts are in good standing. With funding your adoption, be proactive, and anticipate delays beyond your control.
Take Out an Adoption Loan
Many banks and credit unions provide loan options and lines of credit (including Home Equity Lines of Credit), though most adoptive parents don’t realize that this option for an adoption loan exists. Once you have implemented your most desired methods for funding adoption, financing through your bank or credit union can be a useful tool to bridge the gap between you and your funding goal. Once you are fully funded, you can move beyond the researching and planning stage, and proactively take big action steps forward in your adoption process. Adoption can take time, but it can also happen quickly, so having the funds at the ready can become crucial if a match takes place before you have had time to finish your savings plan. For some families, repairing credit in order to qualify for financing can take a few to several months, vs creating a five-year savings plan on their own. The choices are up to you!
Bonus Tip
Always remember to factor in the Federal Adoption Tax credit. Speak with your tax professional to learn how the tax credit could play out for your unique circumstances. The funds you receive from this tax credit can replenish savings, help pay off any financing that remains, or can even be put toward your next adoption.
Many adoption agencies have specific information on these and other ideas to help with financing adoption. There may be special grants and loans that they can offer as well. Don’t be afraid to ask!
For most average families in the United States, the key to successful adoption funding is to combine at least two or three of these funding methods. Perhaps you can save one half of the adoption fund, receive contributions for a quarter of the fund, and finance only the remaining quarter of the funding needed. When adoptive parents whittle the budget down into manageable, bite-sized pieces, and follow a strategic funding plan, funding adoption becomes very doable!
