What are Foster Care Stipends?

Becoming a foster parent is all about opening your heart and home to a child in need.

Charisma Bowman, a foster parent from Maryland, beautifully captures the spirit of fostering in her heartfelt letter to the child in her care:

"I cherish every day that we spend together and push myself to do all sorts of activities just to experience them with you." 

When families decide to foster, they take on many responsibilities and costs. The average annual cost of raising a child is just over $21,000 yearly.

Luckily, no foster parent has to pay for all of this alone. Foster parents receive a foster care stipend to help with these expenses.

Below, we'll explain a foster care stipend, why it's important, and what factors influence the amount. We'll also discuss how these stipends can support children in care.

What is a Foster Care Stipend?

Foster care stipends are financial payments given to foster parents to help cover the costs of raising a child in care. 

The state and local foster care organizations provide these stipends to support the maintenance and well-being of children in care.

Stipends are typically distributed every month, although the exact payment schedule can vary depending on the state or local agency. Some states might offer bi-weekly payments, but the most common practice is a monthly stipend.

We also need to note that stipends are not to be considered as an income source or an incentive to foster. They are to help foster parents with the costs of raising a child. 

Why are Foster Care Stipends Important?

Foster care stipends play a vital role in the foster care system. They provide essential financial support for foster parents to help cover the costs of raising a child in care.

Support for Foster Families 

Fostering a child comes with many expenses, from daily necessities like food and clothing to educational and medical needs. Stipends help alleviate the financial burden on foster families, allowing them to provide a stable and supportive environment without worrying about the costs.

Ensuring Child Well-being 

The primary goal of foster care stipends is to ensure that children in care receive the care and resources they need to thrive. 

These payments help cover the costs of essentials such as nutritious meals, proper clothing, school supplies, and extracurricular activities. By easing the financial strain, stipends allow foster parents to focus on the child's emotional and developmental needs, promoting a healthier and happier upbringing.

Encouraging More Families to Foster 

Financial support through stipends can also encourage more families to consider fostering. 

Knowing financial assistance is available can make the decision to become a foster parent more manageable. This, in turn, helps increase the number of available foster homes, ensuring that more children in need can find loving and supportive environments.

Factors that Influence Foster Care Stipends

Several factors influence foster care stipends, and they also create variations in the financial support provided to foster families. These factors include the following:

Your Location

The amount of the foster care stipend can vary significantly from state to state. Each state has its own guidelines and budget allocations for foster care, which results in different stipend amounts. 

For example, states like California and Maryland typically offer higher stipends, while Missouri and Utah have a lower average stipend. 

These differences match each state's financial standards and foster care system needs.

You can read more about stipends in Mentor Foster Care states here: 

• Maryland Stipends
• Georgia Stipends
• Alabama Stipends
• Ohio Stipends
• Massachusetts Stipends
• Indiana Stipends
• South Carolina Stipends
• Pennsylvania Stipends

The Age of a Child in Care

The age of a child in care can significantly influence the stipend amount. Older children typically require more resources, such as clothing, school supplies, and extracurricular activities. As a result, stipends for older children may be higher to accommodate these additional costs.

For example, caring for infants and teenagers comes with different expenses. Infants may need more frequent medical visits, diapers, formula, and baby gear. However, teenagers might require more funds for school activities and personal items.

The stipend amount is often adjusted to reflect these varying needs, ensuring foster parents can provide appropriate care for children at different developmental stages.

A Child’s Medical Situation

Children with special needs or medical conditions often receive higher stipends. 

These additional funds are intended to cover the extra costs associated with their care, such as specialized medical equipment, frequent doctor visits, and therapeutic services. The goal is to ensure that foster parents have the financial means to meet the unique needs of these children.

The financial requirements for medical treatments and therapies can be substantial. Stipends are often higher for children with significant medical or therapeutic needs to help offset these costs. 

This support ensures that foster parents can access necessary medical care and therapeutic services, promoting a child's overall well-being and development.

What Can Foster Care Stipends Be Used For?

Foster care stipends help foster parents cover the costs of raising a child — here are some common examples:

Basic Needs 

Foster care stipends primarily cover the children's basic needs, such as food, clothing, and shelter. These essentials give children in care a stable and nurturing environment where they can thrive. 

These stipends mainly provide children with nutritious meals, suitable clothing for all seasons, and a safe and comfortable home.

Education and School Supplies 

Stipends can also support the educational needs of children in care. This includes purchasing books, school uniforms, and supplies and covering school fees and extracurricular activities. 

Childcare

Childcare costs can be expensive. 

For those who are working full-time, stipends can be used to help pay for childcare. That way, you can rest assured that your child is receiving the care they need — even when you’re away at work. 

Medical and Healthcare Costs 

While many medical expenses are covered by insurance, there are often additional costs that foster parents need to manage. 

Foster care stipends can cover copays, over-the-counter medications, and other healthcare-related expenses not fully covered by insurance. This financial support ensures that the children receive the medical care they need.

Recreational Activities 

Participation in activities and hobbies is important for a child's social and emotional development. 

Foster care stipends can enroll children in sports teams, music lessons, art classes, and other recreational activities. These experiences provide children in care with opportunities to explore their interests, develop new skills, and build friendships, too!

Transportation 

Transportation costs are another significant expense for foster families. 

Stipends can help cover the costs of public transit, car maintenance, and fuel. Ensuring reliable transportation is essential for attending school, medical appointments, and extracurricular activities.

Budgeting Tips for Foster Parents

Effective Budgeting 

Effective budgeting is crucial for making the most of foster care stipends. 

Foster parents should track their expenses and create a monthly budget that allocates funds for essential needs, educational expenses, medical costs, recreational activities, and transportation. 

Budgeting tools and apps can help foster parents manage their finances more efficiently!

Additional Financial Resources 

In addition to stipends, other financial resources are available to foster parents. 

Grants, subsidies, and additional support programs can provide extra funds to help cover the costs of raising a child in care. Foster parents can research and apply for these resources within their state to supplement their stipends and ensure they have the financial means to meet their children’s needs.

Ready to Learn More About Becoming a Foster Parent?

Becoming a foster parent can initially seem confusing, with many unknowns and questions about where to start. But you don’t have to navigate this journey alone.

Get step-by-step guidance to ease your uncertainties with the Beginners Guide to Foster Care 

You'll get answers to your biggest questions, such as how to become a foster parent, the importance of foster parents, who can foster, and what support is available.