Child fostering is practiced throughout much of sub-Saharan Africa and is often
used by families to oset economic risk and insecurities. While there is a rich
literature on the practice of child fostering, we have a limited understanding of
how absorbing a foster child impacts a household. The AIDS epidemic in the
region has added new complexities to the practice of child fostering, making it
more imperative to understand the relationship between fostering and household
outcomes. Using data from 1,959 respondents enrolled in a longitudinal survey in
Balaka, Malawi, this paper empirically explores the relationship between receiving
a foster child and changes in household socioeconomic status (SES) over a two-
year period of time. Placing particular emphasis on the role of anticipation, the
results show that those who correctly anticipate their care giving responsibilities
experience a greater increase in household SES than those who do not.