Foster Care Costs in Tennessee: What Prospective Parents Need to Know
The Real Costs of Fostering a Child in Tennessee
Foster care plays a critical role in providing stability for children in need. In 2022, Tennessee alone had 9,041 children in foster care, contributing to the nationwide total of 381,176. Families who open their homes to foster children offer much more than just shelter- they provide these children with hope, healing, and a second chance.
While fostering is deeply rewarding, it’s important to understand the financial aspects involved. If you’re considering becoming a foster parent in Tennessee, this guide outlines what you need to know about foster care costs, benefits, and support.
Is There a Cost to Become a Foster Parent in Tennessee?
No, there are no fees to become a foster parent in Tennessee. However, there are licensing requirements you must meet:
- Be at least 25 years old
- Be a Tennessee resident
- Complete TN KEY training
- Pass an approved Home Study
- Demonstrate financial stability (you cannot rely solely on board payments to support your household)
These requirements ensure that foster families are prepared both emotionally and financially to care for a child.
What Expenses Are Covered for Foster Parents?
Once licensed, foster parents receive monthly board payments to help cover the child’s basic needs. These payments support various aspects of daily living and enrichment:
- Housing and Utilities: Includes expenses for the child’s room, bedding, and utility adjustments.
- Food: Covers meals at home and during vacations or outings.
- Hygiene & Health Supplies: Funds can be used for toiletries, laundry, and haircuts.
- Clothing: Supplements basic wardrobe needs beyond any initial clothing allotment.
- School Supplies: Supports educational expenses like notebooks, backpacks, and more.
- Extracurricular Activities: Includes sports, clubs, music lessons, and required uniforms.
- Entertainment: Helps pay for child-friendly outings like movies or mini-golf.
- Transportation: Covers gas or bus fares for school, appointments, or recreational trips.
These payments are not a form of income, but rather a reimbursement for providing care.
Healthcare Costs and TennCare Coverage
Most children in Tennessee foster care are automatically enrolled in TennCare Select, a state-managed Medicaid program. In some cases, children may remain covered under a biological parent’s private insurance, which would take precedence.
Foster parents should know the following about managing medical care:
- Insurance Cards: Every foster child should have a TennCare or private insurance card.
- Medical Visits: Always bring the child’s insurance card to appointments for proper billing.
- Primary Care Provider (PCP): The assigned Family Services Worker (FSW) or Juvenile Services Worker (JSW) will help identify the child’s PCP.
- Prescription Medications: Use the TennCare pharmacy card to fill prescriptions and ensure coverage.
This comprehensive coverage reduces the burden of out-of-pocket healthcare costs for foster families.
Clothing Allotments and Allowance Guidelines
When a child enters state custody, the Department of Children’s Services (DCS) tries to retrieve clothing from their biological family. If that’s not possible, foster parents may receive a clothing allotment or be directed to community resources.
Foster parents are expected to use board payments to keep children properly clothed. All clothing becomes the property of the child and must accompany them if they are moved to another placement.
Additionally, foster children must receive a daily allowance to promote financial literacy:
- Ages 0–12: $1 per day
- Ages 13–17: $2 per day
This allowance should be given directly to the child and documented using Form CS-4204 – Allowance and Clothing Log. Parents may offer additional money as rewards for good behavior, but this is separate from the required allowance.
Handling Tragic Events
While rare, if a child passes away in state custody due to illness or accident, the Department of Children’s Services handles funeral and burial arrangements — especially when the birth family cannot be located or is financially unable to do so.
This ensures the child receives a dignified farewell and provides a small measure of relief during a heartbreaking situation.
Support from Clarvida: Matching Families and Children Thoughtfully
At Clarvida, we collaborate with the Tennessee Department of Children’s Services to thoughtfully match foster children with licensed foster homes. Every child’s background and needs are unique — some are transitioning from group homes, others have experienced multiple placements, and some are working toward reunification or adoption.
We ensure foster families receive the right support, including:
- Pre-placement information
- Child background details
- Meet-and-greet opportunities before final placement
Some children stay briefly; others remain until adulthood or adoption. Regardless of the situation, our goal is to create a nurturing, stable home environment.
Final Thoughts: Foster Parenting Is a Financial and Emotional Commitment
Becoming a foster parent in Tennessee is both a life-changing journey and a meaningful responsibility. While there are no upfront costs, it’s essential to understand the ongoing financial commitments and available support systems.
Foster parents do more than provide shelter — they offer children a sense of belonging, safety, and love. By supporting these incredible families and understanding the resources available, we can all play a part in building brighter futures for children in care.
Interested in Fostering a Child in Tennessee?
If you’re considering becoming a foster parent, Clarvida is here to guide you every step of the way. From licensing to placement and ongoing support, we help match children with loving, capable families ready to make a difference.