Sara Bailey’s adoption experience began when she connected with an adoption agency, paid for a parent’s class, and advertised to her mother who gave birth for a year.
In 2014, due to unsuccessful adoption, Bailey began paying $ 340 a month for each failed adoption.
“I didn’t expect a monthly fee,” says Bailey, director of mental health programs. Indianapolis .. Bailey was disappointed as the cost continued into the second year of the expected annual process.
“For me, there was a point I almost gave up,” she says.
She persisted, and by 2015 Bailey paid over $ 22,000 to adopt her son.
According to the Child Welfare Information Gateway, a service of the Children’s Department under the Federal Office of the Children’s and Family Affairs Department, adoption costs for private institutions can range from $ 20,000 to $ 45,000.
Fees may include statutory fees, home study to ensure the safety of your living space, and counseling.
However, adoption may include unplanned costs, such as the cost of living for a pregnant mother and hospital costs. This depends on the agency, state, and adoption timeline.
Experts recommend that families plan ahead and use multiple types of financing, from financing to borrowing, to manage costs. The strategies to consider are:
Start with a plan
If you work with an adoption agency, you will usually receive a list of costs before you apply, and is the adoptive parent and certified financial planner of Pomegranate Financial, a Utah-based financial planning company. Blake Jones, the founder, says.
Use that information to create a timeline 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 them.
Marta Shen, Raymond James’ Certified Financial Planner at Spring Street Financial, states that accumulating savings is the best option. Atlanta An adoption parent who advises a client on managing adoption costs. Repaying a loan in addition to the costs of a new parent, such as childcare, can be financially stressful, she says.
Ask others for help
In the process of adoption, Bailey turned to the community to help raise money.
“I bought the puzzles and sold the pieces so that people could be part of my child’s life,” she says. “Everyone who bought it gave a name to the back.”
The completed puzzle is now in the room of my 6-year-old son. 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 to it,” says Johnson. Since adoption, Johnson has started a non-profit organization that grants grants to help other black families adopt their children.
Apply for adoption grant
Adoption grants (funds that don’t need to be repaid) are another way to fund adoption. Helpusadopt.org and the Giftof Adoption Fund provide grants to cover adoption costs.
Such organizations need to review deadlines and eligibility requirements, such as parental status and financial needs. When submitting your application, you may need to pay a fee, provide reference material, and provide proof of approved home study.
Home Equity Credit Lines provide access to cash based on the value of your home. It allows you to withdraw money and repay it every month. Shen says it’s more flexible than a loan.
Some people like a certain amount that they know they have to repay, such as a lump sum on a personal loan, while others are fine with HELOC’s revolving credit line. If you don’t know in advance how much you need a parent, HELOC may be a better choice.
Personal loans can be a last resort
If you’re underfunded, don’t qualify for a grant, or don’t own a home, it may be worth considering a personal loan. Credit borrowers may be subject to interest rates of 12% to 17%.
Before you take out a loan, make sure your monthly payments are comfortable on your budget.
Shen advises clients to avoid too many financial obligations that could burden the new family.
This article was provided to The Associated Press by the personal finance website Nerd Wallet. Chanell Alexander is a writer for Nerd Wallet. Email: firstname.lastname@example.org.
NerdWallet: What is a personal loan? https://bit.ly/nerdwallet-personal-loans
Over $ 20,000 to Expand Your Family?Adoption Payment Methods Indianapolis Black Florida Email Atlanta
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