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Many people talk themselves out of becoming foster parents because they don’t think they can afford it. However, states have resources to aid big-hearted parents who want to be there for a child as long as they need them. States understand the costs associated with raising a child and are there to help foster parents cover the costs of raising a child. You will need to be responsible with your finances to ensure the child is brought up in a secure and stable environment.
This post will help you understand some of the financial considerations for foster parents to help you with this life-changing decision.
Local and Federal Assistance
As a foster parent, you’re sure to get monthly financial assistance to raise your foster child. How much assistance you receive depends on the type of funding (state, local, or federal) and the age of the child in your care. The older the child, the more assistance you receive monthly. This money is used to help pay for the child's basic needs.
In certain situations, you may be required to receive above the basic monthly amount. If the child you’re caring for is in need of extra care, as determined by an evaluation.
Clothing Costs
Foster parents also receive a monthly clothing allowance for the children they take care of. Funds can be requested by contacting the Local Department of Social Services or the Licensed child Placing Agency your child is registered through.
Funds for Property Damage
Keep in mind that some foster children may act out depending on their past abusive situations. Unfortunately, these acts could cause harm or damage to your home. The Department of Social Services understands this and knows that you should not be held responsible. That’s why a property damage fund exists.
Medicaid
All foster children, regardless of their age, are eligible for Medicaid. Your financial status as a foster parent, nor the financial status of the child’s biological parents matter.
Transportation Costs
One of the benefits of Medicaid is acquiring transportation to get to and from a Medicaid appointment. Transportation services and transportation reimbursement are available for all Medicaid patients.
Cost of Respite Care
Sometimes, foster parents need a break. Respite care is offered to foster parents for various situations. This means another care provider is approved to take temporary care of your foster child for a limited period of time so you can take the care you need. This is at no cost to you.
Food Costs
With the cost of groceries on the rise, you’ll be happy to know that as a foster parent, you may also have access to WIC products at your local grocer. WIC is a nutritional program that women, infants, and children can access at no cost to them. Foster children between the ages of zero and five have access to the WIC program.
Also, if your foster child attends a public school (regardless of their age), they can receive free school meals. This helps to keep the cost of feeding them daily to a minimum. Some schools provide breakfast and lunch, which means your child could get them both for free.
Your Financial Responsibility as a Foster Parent
While you may be provided assistance with raising a foster child, it is still important for you to be financially responsible and ensure the child has everything he or she needs to live a secure and stable life. Here are some things you can do to help your household and the foster child you care for:
1. Develop a Budget and Stick to It.
Budgets are important whether you foster a child or not. But, if you’re committed to becoming a foster parent, having a budget will help get you closer to your goal. One of the requirements the state will look at is likely proof of your financial ability to care for a child. Nothing determines that better than a budget. If you do not already budget, create a monthly budget to itemize your expenses and show your remaining funds at the end of the month. Continue to do this, even after you’ve gotten approval to foster a child.
2. Create an Emergency Fund.
As an adult, you already know that unexpected expenses can come from anywhere at any time - whether you’re able to cover it or not. That’s the importance of having an emergency fund. If you’re planning to foster children, having a backup plan or an emergency fund is extremely important. One good way to ensure you have an emergency fund is to build it into your budget so that you’re also putting this money to the side so it can build up and be there when you need it.
3. Plan Ahead for Tax Season.
As a foster parent, you may be eligible for tax deductions or tax credits. You may even be able to claim the child as a dependent on your income tax. The only way to know for sure is to get with your tax professional and discuss all the options. Be prepared for tax season to know how to report and ensure you don’t get any unpleasant surprises from the government.
Intercept Health Can Help!
Now that you understand that you are not alone on this foster care journey, the effort may not seem as expensive as you initially thought. If you’re now ready to begin your journey as a foster parent, Intercept Health can help you get started. Take our qualification quiz today so the journey can begin!
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