Preparing Yourself Financially
You might think that the hardest financial part of your adoption is behind you with the payment of fees to your agency and lawyer, support of a birth mother, or purchasing tickets to travel to another country. Think about how you will respond and what resources you might tap into if, for example, you lose your job or your child develops a serious illness.
You might want to work with a financial advisor or planner to help you decide if you should buy a home or add on to the one you have, whether your savings are sufficient to cover emergencies, how to save for college, and whether you have enough life and disability insurance to cover the extra costs of a larger family. A financial advisor can be your banker, broker, or insurance agent. Consider asking someone in your adoption support group for a recommendation if you do not currently have a financial advisor.
It can be very helpful to plan out what your family expenses will be once your child arrives. Adding a child to your family does not have to mean adding a lot of expenses; if you have older children, you can rely on toys, clothes, and equipment you already have. Begin to think about the long-term expenses the adoption will mean for your family.
Don't forget to read your employee handbook and meet with your employer's human resource director. This person can be very helpful in giving you suggestions for dealing with unexpected career and income issues that might occur after the adoption. For example, your company may have a disability policy in place that covers you. You may also get paid or unpaid time off for the adoption (be sure to ask about the federal Family and Medical Leave Act), just as you would for a birth. Your employer may also offer Flexible Spending Accounts for medical and day care expenses.
If you adopt an older child or a special needs child through a state agency, ongoing financial subsidies are often available from your state. Although they won't cover everything your child needs, they could be very helpful. If you adopt through the foster care system, you will probably have access to medical care through the state for the child, even if you have medical insurance through your work or a private policy.
In public agency adoptions, many states cover therapy and psychological counseling for the family as well as for the child. However, it is important to understand that state governments do not necessarily have an obligation to provide services to adoptive families for private and or international adoptions.
Other resources include a one-time federal income-tax credit of more than $10,000, Social Security benefits, and more. You can find more information and suggestions in Chapter 12.
