How to Save Money as a Foster Parent
Being a foster parent is expensive. Especially if you are becoming a parent for the first time through fostering, like my husband and I did. We became parents for the first time, meaning we had no toys, no kid’s clothes, no kid’s lunch boxes, no strollers, no car seats, NOTHING.
I don’t think we really understood how much stuff is needed to parent a child… And I’m not even talking about all the toys, but simply just the basics… Hairbrushes, car seats, backpacks, kid’s shampoos and toothpaste, step stools, potty training potties, bottles, and books… Oh my…
My husband and I have been married for about 5 years and it has simply just been the two of us. We had no need for any of these things. So when we got a call about our first placement and happily welcomed 3 kiddos into our home, we had no idea how much we really needed…
We said yes to a 3-year-old and a pair of 9-year-old twins. The 3-year-old was not potty trained and was still drinking from bottles. I also didn’t even consider the fact that she would likely need a stroller or car seat. But thankfully I had many mama friends who helped me fill in the blanks when I presented them with my list of things to get.
But beyond filling your home for the first time, there are still so many ongoing extra expenses that foster families need to pay for. The kids in foster care have come from some of the most traumatic situations and have often faced abuse and neglect. Due to their trauma backgrounds, they often need special attention to detail.
For example, many kids in foster care struggle with some kind of food insecurity. This can result in the child only being open to certain types of food and it can often be a guessing game to find new foods the child will try, or a kiddo may struggle with overeating because they have never known what it feels like to be full. This can cause grocery budgets to skyrocket!
Needless to say, foster parents need to learn how to be good with their money!
Here are some tips on how to save money as a foster parent:
Keep a Budget and Track Your Spending.
This is the number one thing that has helped my husband and me to stay on top of our finances as foster parents. We have set up a value-based budget in order to prioritize the things that are most important to us as a family unit. This also means that we prioritize our own self-care within our budget because if we don’t take good care of ourselves it is near impossible to take care of another human!
Check out my budget spreadsheets and use this link to get a 15% discount as a foster parent!
Take Advantage of Freebies for Foster Families.
One of the most amazing things I have found is that there are a lot of companies that offer free or discounted stuff for foster families. There are great offerings ou there such as Royal Family Kids Camp which provides the opportunity for children in foster care to go to a week of camp totally for FREE! Be sure to take advantage of discounts such as the Emergency Broadband Benefit Program which offers up to $30 off of your monthly internet bill. Or others like 50% off of your Amazon Prime membership through the Prime Access membership.
Check out this article for nationwide offerings as well as state-specific opportunities for foster families.
Plan Your Meals and Grocery Shop Wisely.
This is one of the biggest expenses for foster parents, so it’s important to be strategic about your food budget. Plan your meals in advance and make a list before you go shopping. This will help you avoid impulse buys and save money.
I also recommend looking into a membership at Costco or Sam’s Club. They offer great prices on bulk items which is wonderful if you have multiple kiddos in your home. Not only that, but they also sell good clothes at really great prices.
Pro Tip:
If you are in desperate need of grocery help be honest and ask for assistance from the county, from your child’s GAL, from your kiddo’s CASA (if they have one), from your church, and even your community. What you may not know is that many of these places are equipped with resources to help foster families succeed. Not only that, but there are tons of people that want the opportunity to help foster families but don’t know. Give them the opportunity to help you out by asking for specific assistance like a gift card.
Learn more on how to save money on groceries here.
Look for Tax Credits
Chat with a tax professional about how to receive these tax benefits but here are a few quick facts to get the conversation started… According to 1040.com, foster children younger than 19 who lived with you for more than half of the year could qualify you for the Child Tax Credit. You didn’t have to provide more than 50% of their support, either—as long as you housed the child for the majority of the year, you could claim the credit.
Also, make sure you do NOT pay taxes on the foster care stipend you receive from the state. Any payments you receive from a child placement agency, or the government (state & local) are considered nontaxable income.
Talk to your local tax professional about any state tax benefits you might also be eligible for. For example, in Colorado, we have some super beneficial tax credits such as a 20% tax credit on vehicle purchases.
Shop at Discount Stores and Use Coupons.
There is absolutely no need to buy brand names on anything. One of the greatest ways to save money as a foster parent is simply to shop at discount stores, use coupons, and buy store brands. There are many great deals at discount stores, so be sure to take advantage of them.
You can also save money by using coupons. If you are an online shopper, you must download Rakuten and Honey onto your internet browser. These tools will show you when there are coupons or cash-back opportunities on the websites you visit. Another must-have is the Fetch app which allows you to scan all of your receipts and earn points which you can turn into cash.
School Transportation & Fees
This may not transfer to every county or every state, but here in Colorado, we do not have to pay for the educational fees for the kids in our care, nor do we have to pay for their breakfasts & lunches at school. We simply filled out a form at the beginning of the school year and the fees on our kiddos’ accounts were waived.
Not only that, but we live far away from our kiddo’s school. Thankfully, their school provides transportation for us through a service called HopSkipDrive which in essence is like Uber, but for kids! We did learn too, that if the school itself did not provide the transportation, then the department would have paid for the service themselves. So either way, we would have been covered.
Understand Medical Expenses.
Many people want to know who pays for medical expenses for children in foster care and the short answer is Medicaid. Every child in the foster care system is covered by Medicaid. This is great because as a foster parent, you are responsible for taking them to get all of their general check-ups done.
Medicaid covers expenses for pediatricians, dentists, eye doctors, therapists, prescriptions, and more. There was one time when we did have a bill for an ER visit sent to our house for a kiddo that was previously in our care, and the case worker for that child asked us to just send the bill over to the department and they would handle it. So if there are ever medical bills that are not covered by Medicaid, send those over to your county department for them to take care of.
Get Creative with Activities.
There are many free or low-cost activities that you can do with your kiddo. Go for walks, play games, or visit the library. There are also many community events that you can attend for free or at a low cost. One really awesome discount for foster families is the Museums for All program which thousands of museums participate in across the United States. They offer free and discounted prices on museum entry for families receiving food assistance.
Ask for Help!
Don’t be afraid to ask for help from your friends, family, or the foster care agency. Many people are willing and eager to help you out but would love to know what exactly you need help with.
Things to consider asking for are meals, clothes, shoes, help with transportation, child care, or even financial assistance through cash or gift cards. Some so many people would love to be a part of impacting the life of a child in foster care, but may not have the capacity to become a foster home. By asking for help you are allowing these people to be a blessing.
Fostering a child can be a rewarding experience, but it can also be expensive. By following these tips, you can save money and make the experience a little bit easier on your wallet. Don’t let the financial burden of taking a kiddo into your home stop you from offering a safe and stable place for them to reside.
Are you a foster parent? What other tips have you found helpful to save some money?
Share with us in the comments below.
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