Unexpected costs to plan for when you’re adopting

No matter the family, adoption has its own rewards, stresses, and surprises. It also comes with some unexpected costs. By being thoroughly informed of what’s to come, you can make the most of what is certain to be a life-changing experience.

Four types of adoption

There are four main types of adoption. The first option is to use a private agency, which takes care of the entire adoption process, including finding an expecting mom interested in giving her child to a new family. Another common option is international adoption, which has its own unique adoption costs, from travel expenses to dossier authentication required by specific countries. You can also choose to adopt via your state’s foster system through a public or private agency. Finally, there’s the option of adopting a stepchild if the other biological parent relinquishes parental rights.

Adoption costs and considerations

No matter which option you choose, the adoption process is expensive, with agency and legal fees at the top of the list. On average, adopting a child in the United States is can cost between $20,000 and $50,000.¹ This price can cover legal fees, home studies, travel and lodging, court fees, and medical and living expenses for the birth parent. There are also other costs associated with raising a child that is unique to adoptive families.

One concern you may face if adopting an older child is whether he or she is ready for an age-appropriate grade level or requires additional learning assistance, which could mean the extra cost of a tutor or special schooling. In addition, there’s the matter of higher education, whether for college or vocational training. While setting up a 529 college savings plan is one practical step all parents can take to pay for their child’s continuing education, if you’re adopting a child who’s older, you might have to increase your deposits.

Ideally, within 30 days after an adopted child joins your family, they should have a comprehensive health evaluation with a pediatrician. This exam can establish care for any known health issues and identify new ones. This initial visit will be more in-depth than regular check-ups. It will be helpful if you're able to provide your pediatrician with as much information about your newly adopted child's healthcare history, such as any available medical records. Depending on your child’s overall health and age, one visit may be enough, or their pediatrician may recommend several visits to complete a thorough assessment.²

To help with the cost of adoption, some employers offer adoption assistance, such as referrals to licensed adoption agencies, partial reimbursement for financing adoption, and parental leave, so check with your employer to see what assistance is available to you.

Protecting your adopted family

As a new parent, you’ll also need to think about protecting your family in case anything happens to you. For example, if your family depends on your income, they could be in serious financial trouble if you’re unable to work. Consider disability income insurance, which can help replace a portion of your income if you become too sick or injured to work. Even if your employer offers basic disability income insurance, you may want to consider supplementing that coverage with an additional policy that will help protect you and your family, both now and well into the future.

In addition, a life insurance policy is a good way to help guarantee the people you leave behind will receive financial protection after you’re gone.³ If you have coverage through your employer, but suspect it’s not enough, seek guidance from an established financial professional.

Adoption is a viable option for any family, but there are unique costs involved — some related to the adoption process itself and some related to the needs of the child. With proper planning and protection, adopting a child can be what it’s meant to be — one of life’s most fulfilling experiences.