When you begin the foster carer journey and start looking after a child, you will receive a set allowance. This allowance is there to help you pay for the needs of the foster children in your home, and cover activities like days out and so on. How you use it is ultimately up to you, but it is beneficial to read through some guidance on the matter, nonetheless.
Budgeting
The first step is to figure out how much money you will receive from your agency, such as fosteringpeople.co.uk, and factor it into a monthly budget document. This will help you plan things like food shopping, clothing replacements, and general adventuring too. Your child, depending on their age, might need a new uniform, or things like coats, toiletries, etc. It is your job to recognise these needs and put them at the forefront of the monthly budget so that they are never without a single thing.
Days Out
The allowance is also useful for enrichment activities. This is a large part of what fostering is all about, because carers step up to give the children they look after the best experiences in life wherever possible. Try to get out and about at least once a week, whether that is having a picnic in the local park or visiting a museum. The allowance can help you cover the costs, alongside essential things like the foster carer blue light discount.
Basic Essentials
As mentioned above, foster children may need a lot of things when they first move in and over the course of their time in your home. The fostering allowance helps you plan for this and cover the costs of essential items like school uniforms and general clothing. While it is useful for meal planning, it is also great for general needs as well.
Savings Accounts
If you have a child on a long-term placement, you may well be encouraged to set up a savings account for them to access in the future. These children may not have anyone else in the world who can do this for them, so it really is a privilege. You can put a set amount from your allowance pot straight into this account each month, and you will be surprised at just how fast it grows! When they reach adulthood, they can use this to set themselves up with a car or even use it towards a house deposit.
Special Spends
It can also be put towards special occasions and specific spendings like haircuts, birthday parties and big gifts. This is an incredibly useful thing because, as all people who look after children know only too well, these sorts of things can get expensive and be hard to plan for! Yet having this provision in place means it is a safety net and completely taken care of when the day or moment comes about.
The foster care allowance is tax-free up to around £18,000 and is there for carers to enhance the care experience for their foster children. It can and should be used sensibly as long as you budget well and allocate it in the right places.