We wish we had a nickel for every time we’ve been asked, “How much does adoption really cost?” We all want a short, sweet, and preferably affordable answer. However, with several types of adoption available to most of our readers, the answer is complex. We keep up with the trends and changes for all three major types of adoption, including costs. You can find the information in this regularly updated article. When we think about how to afford adoption, we turn to our robust online community for input from experienced adoptive parents. They were happy to share with us what they did to afford adoption.

The Average Joe (or Jo) is Resourceful

We surveyed over 140 online community members, many of whom adopted more than once. They were all creative and motivated to carefully manage the financial load of adoption. It was also clear how resilient they were to find ways to come up with the money.

The Top 9 Ways to Afford Adoption

We share these nine ways our community members afforded their adoptions without judgment. However, we would be remiss if we did not also caution against incurring excessive debt to adopt. This CreatingaFamilyEd.org course, How to Afford Adoption, is an excellent tool to help you consider other options beyond debt.

The percentages associated with each method are estimates, as this Facebook poll cannot be considered truly representative of the full breadth of the community. We also want to note that some members voted for more than one option, as they creatively combined several ways to afford their adoptions.

1. Budget tightening (15%)

These respondents cut their expenses to divert funds to savings. They stopped eating out frequently, reduced cable or phone plans, and limited shopping to necessities. Some even chose to forego vacations and other entertainment or luxury expenses. Their goals were to trim their household budget to the bare bones for the timeline of their adoption process.

2. Gifts, donations, inheritances, etc. (13%)

Many members who voted in our poll received gifts and donations from friends and family. A few used inheritances or money from a family member’s estate, which made the gifts significantly meaningful as they pursued adoption.

3. Personal funding through savings and income. (10%)

Several members reported using savings and regular income to afford adoption. Of course, this involves planning and budgeting well before embarking on the adoption journey, and that foresight is applaudable!

4. Increase income. (7%)

While they worked through the adoption process, many members chose to take extra jobs or work additional hours for overtime. Some members reported juggling several jobs at once. Knowing the inconvenience was short-term made it easier to keep their goal in sight.

5. Employer benefits. (7%)

It was heartening to read that several members have employment that offers benefits for adoption expenses. Employer benefit programs typically reimburse adoption expenses once the adoption is legally finalized. Still, employers who help defray the cost of adoption are a benefit we can get behind!

Let’s Talk About Adoption, a FREE guide for you!

6. Borrowing formally. (7%)

While many of our members were reluctant to incur debt, they also faced the time constraints typical of many adoption processes. When faced with deadlines for documentation fees or other lump sums needed to move to the next phase of the process, they chose to borrow against retirement accounts, refinance their homes, or open a line of credit. One suggestion is to consider whether you qualify to participate in a credit union through your employer or other special interest groups (like the military, etc.).

There are also adoption loan programs or personal loans to consider. Our members weighed the risk of debt against their projected ability to pay the loans off quickly. It’s important to consider the potential risks of borrowing formally, such as the impact on your credit score and the stress of managing additional debt while welcoming a new child to your home.

American families incurring debt to build their family is an excellent example of why we citizens should be involved in the legislative efforts to return the Adoption Tax Credit to refundable status rather than a credit applied against our tax liability.

8. Fundraising and crowdsourcing. (4%)

The trends around adoption fundraising have changed a bit in the years since we last surveyed our online community! In 2018, fundraising (crowdsourcing like a go-fund-me account, spaghetti dinners, silent auctions, yard sales, etc.) was the 4th most common method of affording adoption. We might attribute that change, in part, to the growing voices of adult adoptees and foster alums speaking about the risks of using social media or other public fundraising methods for an adopted child’s sense of identity.

8. Adoption Grants (4%)

Members must weigh the cost-risk balance regarding adoption grants. Many grants have application fees, and hopeful parents must carefully consider the options. However, if you can spend the time (and money) to search for and apply for them, they can be hidden gems! To apply for an adoption grant, you typically need to fill out an application form, provide documentation of your adoption process and financial situation, and sometimes write a personal statement about why you need the grant. It’s a competitive process, but for many families, it’s worth the effort.

9. Borrowing privately. (3%)

Several members elected to borrow funds privately from friends and family to meet their needs and avoid any impact on their credit scores. This is a fantastic option if you can afford it and if your relationships are healthy enough to sustain the challenges of talking about money. For families who choose this route, it’s wise to set clear expectations of how much you borrow, when you will pay it back, and how.

Using the Adoption Tax Credit

Several members mentioned using the Adoption Tax Credit, which we wholeheartedly support! The Adoption Tax Credit is a significant financial resource for many adoptive families. It allows you to claim some of your adoption expenses as a credit on your federal taxes. There are several essential things to remember if you plan to include the adoption tax credit in your plan to afford adoption.

Please refer to our Adoption Tax Credit Resources page to learn more about the benefits of the federal Adoption Tax Credit. We update the information annually.

Adopting from Foster Care

Many of our respondents (approximately 30%) agreed that they chose to adopt from foster care. Thus, the state covered many of their expenses. Adopting through foster care is obviously not a method of affording adoption, but it is a significant issue to consider if finances are the primary restraint keeping you from adopting altogether.

Each type of adoption has its own risks and benefits, and for those who can commit to the goals of the US foster system, which is always reunification of the child with the birth family first, it can be an excellent choice. You can learn more about the factors to consider when adopting from foster care here.

Affording Adoption is Not the Same as The Cost of Adoption

How to afford an adoption is usually a very different question from how much adoption costs. When you are thinking about how your family will afford to adopt a child, we hope you’ll consider using the many resources available on our site, starting with our Affording Adoption Resources page.

We know most families don’t have the total cost of an adoption process in their bank accounts. The good news is that the total amount is rarely due in one lump sum. You have time to work through issues like how to adjust your spending, modify your household budget, explore additional or alternative income, and more. Affording adoption can be within reach for the average Joe (or Jo).

Image Credits: cottonbro studio; Andrea Piacquadio; Tima Miroshnichenko