Adoption is a life-changing decision for everyone involved.  The end goal is to be a positive role model and guide through your child’s life. Equally as important as a child needing a loving and nurturing family, the adoptive parents must also meet the basic physical needs of food, water, and shelter. Tacked on to all of the life expenses there is also the cost of the adoption process.  The bottom line is before you start the adoption journey you have to take into consideration everything mentioned above and ask yourself, "Am I (are we) financially ready to adopt a child?"

Exact costs for adoption will be difficult to predict, as this will also depend on the type of adoption you choose. There are three kinds of adoption in the United States:

Domestic Adoption: Adopting an infant in the United States

International Adoption: Also referred to as intercountry adoption, is adopting a child from another country

Foster to Adopt: Adopting a child from the  foster system

According to the Child Welfare Information Gateway from the US Department of Health and Human Services, the average cost of domestic adoption ranges from $20,000-$40,000. This amount covers the cost of legal fees, home studies, travel, birth parent expenses which include medical and living expenses.

International adoptions cost more as you must factor in travel (sometimes multiple trips), and processing fees from two countries. Depending on the country, fees can range from $20,000-$50,000. 

Foster to Adopt is a beautiful way to build your family without having to incur the expenses of the previously mentioned adoption types. While every state has different rules and fees associated with adoption through the foster system, for the most part, it can be agreed that this is the quickest and most affordable process. Fees can range from $0-$3000 but it's not unheard of to have these fees reimbursed through tax credits etc. 

Adoption Grants

Grants are the most sought and most preferred by adoptive families. They don’t have interest or other fees and you don't have to pay it back.  Many faith-based and civic organizations provide adoption grants as high as $15,000. Ask your agency about adoption grants!

Adoption Loans

Long-term adoption loans are a viable approach for a sizeable amount of money on a single transaction like adoption expenses. 

Savings for Adoption           

Many adoptive families have chosen the more traditional route of savings for the adoption and then combine it with other adoption financing options if needed.

Tapping into your IRA is now an option as well for adoption expenses. Thanks to the Secure Act  you are now allowed to withdraw up to $5,000 penalty free out of your IRAs or 401 (k) plans following the adoption of a child.                                                                                               

Adoption Fundraising

Be creative and dabble with your entrepreneurship skills.  Google Adoption Fundraising Ideas and you will find hundreds of creative ways to raise money for adoption expenses. Many families prefer this method because it involves their community in the process. 

Adoption Tax Credit

The adoption tax credit is available to eligible adoptive parents for qualified adoption expenses.  For 2023 the amount available is $15,950. If your modified adjusted gross income is $279,230 or more for the year, you are not eligible for the credit.  

Qualified Adoption Expenses:

• Court Costs
• Attorney's Fees
• Agency Fees
• Travel Expenses
• Other expenses directly related to the legal adoption of an eligible child

Expenses not covered:

• Expenses your employer reimburses you through an employee benefit plan
• Step-parent and surrogacy expenses

The bottom line is you shouldn't let total cost get in the way of growing your family through adoption.  One thing to keep in mind is the process can take months if not years. The total end amount you see is never paid upfront at the beginning. It is spread out over the course of the adoption process. A reputable agency will present a payment schedule as well as a schedule and approximate timeline of fees owed as well as a schedule for payment to outside sources, i.e. homestudy, passports, etc.  If they don't have a schedule, request they put one together for you. It is your right...and piece of mind. 

You will learn in this beautiful and sometimes insane process that slow and steady will win the race to grow your family! You got this!