by Kimberly Schiller

Created on: April 10, 2009

We all know that it is expensive to raise a child. The life changing rewards also come with a stack of new bills to pay. This expense can be challenging enough for a young person in their career prime, but it can be devastating for an older person who thought they would be getting ready to retire at this point in their life. Many members of the older generation find themselves unexpectedly raising their grandchildren and not sure they can make ends meet. There is financial aid available for grandparents - it's just a matter of knowing where to look.

The first place a custodial grandparent should go is their local Social Security office. There are a wide range of programs available there to help. Some are specifically for someone other than the parent raising the child, however many benefits available to parents are available to grandparents as well. Each benefit has different eligibility requirements, so it is important to speak with someone there. Here is an overview of some of the programs available through Social Security.

Medicaid

Medicaid is a need based program that provides health insurance for low income individuals. If you have custody of a child, you can apply for Medicaid coverage on their behalf.

Temporary Assistance for Needy Families

Temporary Assistance for Needy Families (TANF) is also a need based program. If you qualify, you can receive a broad range of assistance, including day care and food stamps. There are several different levels of benefits, some of which are only for a specific length of time, and you may be required to prove you are related to the child for some of them.

Other Social Security Programs

In addition to Medicaid and TANF, there are other SS benefits available. You may be eligible for food stamps, free or subsidized daycare, and Social Security benefits for the child if their parent is deceased or disabled.

In addition to Social Security, a grandparent raising their grandchild can also look to their individual state of residence for help. The availability and requirements of these programs vary greatly from one state to another.

Kinship Foster Care

If your grandchild was placed in foster care, and was subsequently placed in your custody by the state, you are eligible for the same payments, benefits, and requirements as any other foster parent. It is important to note that in this situation, the guardian will need to be licensed and the child will remain a ward of the state.

Subsidized Guardianship

Many states offer subsidies to family members who take legal custody of a child. Some require the child to be processed through the foster care system, while others do not, and some states offer no benefits at all. Contact your state's Child Welfare department for specific information.

Children's Health Insurance

Most states offer a health insurance program for families who cannot afford their own health insurance but don't qualify for Medicaid. This is a great way to provide health and dental care for your child if you don't have insurance for yourself or cannot afford to add them to your policy. Many states call this benefit the CHIP program.

These benefits and programs should give you a good start to providing for your grandchild. Don't forget to check with your local church and community groups that can offer a wealth of financial assistance and emotional support. You can also consult with a tax professional to ensure that you are receiving all the appropriate tax credits and refunds for the dependent child. There is financial aid available for grandparents raising their grandchildren, so don't feel like you need to go it alone.

Learn more about this author, Kimberly Schiller.
Click here to send this author comments or questions.