As the custodial parent, you have the sole responsibility of managing all child-related expenses. Food, clothes, school, health care – it’s your duty to make sure all your child’s needs are met all while making sure they fit into your budget.
It can be a lot, but don’t worry. If you are receiving child support, a bit of financial strategizing can help you make the most of each payment. Here are a few tips to start with.
Create a monthly budget
Begin by making a budget for each month, starting with the essentials. These include food, clothing, health care, education and a portion of housing related to your child.
Consider using the entire child support payment for these basic needs. Ideally, the payment would be enough to cover them. If not, calculate the amount you would need to take out of your personal finances.
If there is some leftover from the child support, you may want to deposit it into a savings account or put it away for irregular expenses, such as field trips, school supplies or extracurriculars.
Open a separate account
If you want to keep the payments separate from your personal money, consider setting up a dedicated bank account for child support funds. Doing this also makes it easier to keep track of incoming payments and prevents you from accidentally using the funds for other expenses.
Track all child-related expenses
Child support-related or not, tracking expenses is always a good financial tip. It helps you see where the money is going, prioritize more important expenses and spot any financial habits that need changing.
For example, if you notice that you’re spending too much on clothing and not saving enough for health care, you can tweak next month’s budget to align your goals.
Moreover, tracking expenses helps ensure transparency in case the other parent asks about how you use the support. It may also give you a basis for child support modifications in case your child’s expenses increase as they grow older.
What if you need more support?
Child support can stretch further than you expect with the right financial planning. But what if it can no longer meet your child’s needs, even with yourself contributing?
Perhaps your child requires more child care or maybe they develop an illness that requires a higher health care budget. In such cases, an experienced lawyer can help you find the best solution for you and your child.
