Raising kids after a divorce often means juggling new responsibilities—financial and otherwise. Even when money feels tight, setting aside a little at a time can ease the pressure and support your child’s future.
Whether you’re saving for school, special moments, or everyday needs, having a basic plan can help. Starting with manageable steps and staying consistent may be more realistic than you think—and it can lay a strong foundation for your family’s financial future.
Start Small: Building a Savings Habit
Life after divorce can come with budget adjustments. But you don’t need to set aside large amounts to get started. Consistent, modest contributions can help you build momentum.
Even a few dollars a week can go far. Take a look at your spending to see where you might scale back—like unused subscriptions or the occasional takeout. The idea isn’t to cut everything, just to create space for saving that works with your lifestyle.
When you receive extra income—like a refund, bonus, or unexpected gift—consider putting a portion into your savings. These occasional boosts can speed up your progress without straining your budget.
Open a Child Savings Account
A custodial savings account allows you to manage money on your child’s behalf until they’re ready to take over. It’s a practical place to keep birthday gifts, part-time job income, or anything you’re able to contribute.
This account can also help teach responsible money habits. As your child grows, you can set expectations around saving and spending—like keeping a portion of each deposit in the account.
Over time, you might shift control to them as they demonstrate responsibility. That step not only builds trust but helps your child learn how to manage money independently.
Plan for Shared Expenses and Life Events
Everyday outings and special occasions can sneak up on your budget—especially when you’re managing things on your own. Birthdays, school events, and vacations all come with costs that are easier to handle when planned in advance.
Try setting up a separate account just for family activities. Automating a small deposit each month can help you build it up gradually. You can also use this account to stash any extra funds, like part of a bonus or cash gift.
Having money set aside means you can say yes to meaningful experiences without dipping into emergency savings or adding new debt.
Explore College Savings Options
If helping your child pay for college is one of your goals, the sooner you begin setting money aside, the better. Tuition and related expenses continue to rise, but regular saving—even in small amounts—can help ease the burden later on.
A 529 plan is one option that’s built for education savings and may offer tax benefits, depending on your state. You can open one individually or, if appropriate, collaborate with your ex to contribute together.
If you’re unsure where to begin, consider reaching out to a financial adviser to explore the best options based on your situation and goals.
Teach Long-Term Saving Habits
If your child is earning money from a part-time job or side projects, it might be the right moment to introduce long-term saving. One option is helping them open a Roth IRA, which lets them set aside earned income for retirement.
Retirement might seem far off to a teenager, but early saving can lead to significant growth over time. It also encourages future-focused thinking and builds money management skills that can last a lifetime.
Before setting up any type of account, check the eligibility rules and consider talking with a financial adviser to understand the benefits and limitations.
Final Thoughts
You don’t need a perfect plan—or a big income—to start preparing for your child’s future. What matters most is creating a habit and contributing when you can.
By saving consistently and modeling thoughtful money habits, you’re helping your child build confidence and resilience. Over time, these efforts can open doors to education, opportunities, and greater financial independence.
