Financial Strategies and Resources for Adoptive Families

Costs of Raising a Family

On the one hand, it costs a lot to raise a child.

On the other hand, there are many resources available to pay for these costs.

And there are many ways to control these costs, depending on the choices you make.

Typical costs of raising a family include:

housing
food
transportation
clothing
child care
education (including tutoring; cultural education; books, games, toys; activities, clubs, sports, camps, lessons; entertainment)
health care (including health insurance, medical, dental, mental health counseling, long-term care)
miscellaneous (including vacations, rites of passage celebrations, birthdays, gifts, allowances)

WORKSHEETS/TIPS—WHAT IT COSTS TO RAISE A CHILD

The “unexpected” affects the costs of raising a family. You can do your best to thoroughly understand the history of your adopted children, and you can prepare as best as you can for the unexpected. But the journey with children is unpredictable, and with adopted children it may be even more so. Adopted children may have scars that will surface in a variety of ways during their lives. Parents of adopted children with special needs come to understand those specific needs and the impact adoption has on their families over time.

Stories of other families grappling with challenges might make you want to say “this will never happen to us,” but it is smart to be mindful of the unpredictability of your child’s journey. This unpredictability has financial ramifications; it will affect the cost of raising your child.
Possible costs, in addition to typical costs, may include:

respite care
out-of-home placements
costs associated with a child’s contact with law enforcement and the juvenile justice system
costs associated with allegations

The costs of raising a child will vary by the age of your child at the time of adoption.

Adopting an infant	Child care costs will be higher. Clothing, food, transportation, and miscellaneous costs will be lower at first.
Adopting an 8-year-old	Child care/education costs will be modest.
Adopting a teenager	Clothing and transportation costs will be higher. Food and miscellaneous costs will be slightly higher. Education and activities will be higher. This is the age when you will be planning for post-high school education/training. Adopting at an older age means that you will have less time to save for those expenses.

Source: www.cnpp.usda.gov/Crc/crc2004.pdf.

Additionally, adoptive families of children with special needs often notice that as their children grow, so does the severity of their special needs. It is helpful to obtain expert advice now about the potential long-term costs related to your child’s special need(s).

Here are descriptions of some child-rearing expenses along with situations that may arise over time and suggestions for good financial planning.