There’s a common myth that foster parents “do it for the money.” In this episode of the Dream Small Podcast, we walk through the real financial support foster parents receive in Indiana, including per diem rates, reimbursements, adoption subsidies, and why none of it comes close to covering the true cost of caring for a child.

If you’ve ever wondered:

1. Do foster parents get paid?
2. How much money do foster parents receive?
3. Is foster care financially sustainable?

This episode gives honest, firsthand answers based on real-life experience.

What You’ll Learn in This Episode:

1. Foster Care Per Diem Rates in Indiana

Foster parents receive a daily per diem intended to offset basic living expenses. Rates vary by age and level of need determined by a CANS score.

Approximate daily rates:

- Level 1: $27 - $35

- Level 2: $36 - $43

- Level 3: $48 - $55

- Level 4: $72 - $79

These funds cover essentials like food, clothing, and hygiene items, not income.

2. Initial Clothing Allowance

Indiana provides a one-time $200 clothing voucher when a child is placed, helping cover immediate needs like clothing, shoes, and baby supplies. No sales tax applies.

3. Annual and Special Allowances

1. $300 annual personal allowance per child
2. $50 birthday allowance
3. $50 Christmas allowance

(Some agencies may supplement these amounts.)

4. Medicaid and WIC

All foster children receive Medicaid coverage. Children under five may also receive WIC benefits to help cover formula and basic nutrition.

5. Adoption Through Foster Care

Adoptive families may continue to receive:

1. Ongoing per diem support
2. Medicaid coverage
3. Partial adoption legal fee coverage
4. A federal adoption tax credit

6. Kinship Care vs Licensed Foster Care

Kinship caregivers often receive fewer benefits unless licensed. Licensing unlocks additional financial supports.

7. The Big Takeaway

Foster care payments are reimbursements, not income. Families who do foster care well almost never break even.

Who This Episode Is For:

1. Prospective foster parents
2. New foster families
3. Kinship caregivers
4. Anyone curious about foster care finances

If this episode was helpful, please consider sharing it with someone who has questions about foster care or who may be considering becoming a foster parent.

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Contact:

Email: dreamsmallpodcast@gmail.com

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