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7 Money Moves to Make Before Adopting a Child – The Motley Fool

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Whether you become a parent through birth or adoption, life is…….

Image source: Getty Images

Whether you become a parent through birth or adoption, life is easier when your finances are in order.


Key points

  • Raising a child is expensive. The more prepared you are for the extra expense, the more time you’ll have to focus on your growing family.
  • Getting your financial ducks in a row includes making sure health insurance coverage is adequate, you have enough life insurance, and you have a will in place to protect your child.

Bringing a new child into the home can be expensive, whether you’re paying medical costs to give birth or adoption fees. If you’re adopting a child from the foster care system, the fees will likely be relatively low. If you’re taking part in a private adoption, you could be looking at costs ranging from $30,000 to $60,000.

If the cost of adoption runs in the tens of thousands, it’s essential to get your financial ducks in a row. That means making sure you have the money to cover fees but can continue to invest for the future. It may sound overwhelming, but you don’t have to do it all at once. Choose one goal to hit before moving on to the next.

First things first

Before we go any further, though, the United Way offers adoptive parents these tips for avoiding scams and keeping money in your bank account.

  • Before handing money over to a facilitator who promises to find you a child, check their references carefully. Adoption facilitators are not well regulated and are illegal in many states.
  • Consider it a red flag if a birth mother asks you for money. While it’s true that expectant mothers may need financial assistance, all financial transactions should be handled by an attorney or adoption agency. Simply put, you’re emotionally involved and, therefore, easier to manipulate.
  • If you’re working with a woman who is still early into her pregnancy, know that she may change her mind. Money paid may not result in you adopting her child.
  • Take part in online forums for potential adoptive parents. According to the United Way, members there report current scams.

Money moves to make

As you move toward the day you’ll welcome a new child into your home, make sure your finances are in order. Here are seven steps that will serve your growing family well.

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Source: https://www.fool.com/the-ascent/personal-finance/articles/7-money-moves-to-make-before-adopting-a-child/

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