Kinship Care Insights, News & Stories
Foster Care Stipends vs. Relative Pay: Financial Realities
When a child comes into your care, the financial responsibilities can begin immediately. Food, clothing, transportation, school supplies, medical needs, and everyday household expenses can add up quickly.
For grandparents, aunts, uncles, siblings, and other relatives stepping in to care for a child, one of the most common questions is: Can I get paid for caring for my relative’s child?
The answer depends largely on how the child came into your care, your caregiver status, and the programs for which you may qualify.
A relative caring for a child through the child welfare system may be eligible for foster care maintenance payments if they meet the applicable requirements. Other relatives caring for children outside the foster care system may have access to different forms of financial assistance, including TANF child-only benefits.
Understanding the difference can help you determine what financial support may be available to your family.
What Is a Foster Care Stipend?
A foster care stipend, also referred to as a foster care maintenance payment, is financial support intended to help offset the costs of caring for a child in foster care.
These payments can help with everyday expenses associated with caring for a child, including food, clothing, shelter, supervision, school-related expenses, and other approved needs.
A foster care payment is generally not a salary for parenting a child. Instead, it is intended to help support the costs associated with the child’s care.
For relatives who become approved kinship caregivers, financial support may be available based on the child’s placement and the caregiver’s status.
Can a Grandparent Get Foster Care Pay?
Yes, a grandparent may be eligible for foster care payments, but being a grandparent alone does not automatically make someone eligible.
If a child is placed with a grandparent through the child welfare system, the grandparent may be able to become an approved foster caregiver and receive foster care maintenance payments when applicable requirements are met.
This means the important question is not simply, “Am I the child’s grandparent?”
Instead, caregivers should ask:
- How did the child come into my care?
- Is the child in the custody of a county children and youth agency?
- Am I an approved foster or kinship caregiver?
- What type of placement does the child have?
- What financial assistance programs may I qualify for?
These details can make a significant difference in the type of financial support available.
Foster Care Stipend vs. Relative Caregiver Assistance
Not every kinship arrangement is considered foster care.
A child may be living with a relative through a formal child welfare placement, a court arrangement, or an informal family arrangement. Because these situations are different, the financial support available to the caregiver may also be different.
Formal Kinship Care
Formal kinship care generally involves a child being placed with a relative or kin caregiver through the child welfare system. Relatives who become approved foster caregivers may be eligible for foster care maintenance payments and other supports associated with the child’s placement. For caregivers in this situation, it is important to work with the child’s caseworker and ask about the approval process, payment eligibility, and available supports.
Informal Kinship Care
Informal kinship care occurs when a relative steps in to care for a child without the child being placed in foster care through the child welfare system. In these situations, the caregiver generally should not assume that they will receive a foster care stipend.
Instead, they may need to explore other financial assistance programs. One possibility is a TANF Child-Only Grant. If you are caring for a kinship child outside of the foster care system, do not assume that you are ineligible for financial assistance simply because you are not receiving a foster care payment. You may have other options to explore.
Learn more about How to Apply for TANF Child-Only Grants & SNAP.
Why the Placement Type Matters
One of the biggest misconceptions about kinship care is that every caregiver receives the same financial support.
That is not the case. Financial assistance can depend on whether:
- The child is involved with the child welfare system
- The placement is considered formal kinship care
- The caregiver has been approved as a foster parent
- The caregiver has legal custody or guardianship
- The child is living with the caregiver through an informal family arrangement
- The caregiver or child qualifies for other public benefits
That is why it is important to understand your specific placement and caregiver status before making financial decisions.
What Expenses Can Financial Support Help With?
Caring for a child can involve much more than the basics.
Depending on the type of assistance you receive, available financial support may help address expenses such as:
- Food and groceries
- Clothing and shoes
- Housing and household expenses
- School supplies
- Transportation
- Medical and dental needs
- Child care
- Personal items
- Activities and other needs related to caring for the child
Because programs have different eligibility rules, caregivers should ask what expenses and services are covered under their specific benefit or placement.
Medicaid and Healthcare Assistance
Children in kinship care may need access to healthcare coverage for medical, dental, mental health, and other needs.
Learn more about Medicaid for Kinship Care and how caregivers can help children access healthcare coverage.
You Don’t Have to Navigate Financial Support Alone
Stepping into the role of caregiver can happen quickly, and many relatives are asked to make major financial and household decisions with little time to prepare.
Understanding the difference between foster care stipends and other forms of relative caregiver assistance can help you ask the right questions and identify resources that may be available to your family.
At A Second Chance, Inc., we understand that financial questions are often just one part of navigating kinship care.
Next Steps & Helpful Resources
Need help finding financial and family support? Explore ASCI’s Kinship Connections Resource Hub for information, guides, and resources designed to support kinship caregivers.
This article is intended for general informational purposes and is not legal or financial advice. Financial assistance programs, eligibility requirements, placement classifications, and payment amounts may vary based on individual circumstances and can change over time. Caregivers should seek guidance about their specific situation before making financial or legal decisions.