Saving for Your Children—Beyond Just College

When it comes to saving for your kids, most people immediately think of college, and for good reason. The cost of higher education continues to rise, and it’s one of the biggest financial goals many parents face. But focusing only on college can leave you unprepared for all the other expenses that come with raising a child, and the ones that follow them into adulthood.

The truth is: raising kids is expensive. And it doesn’t stop at tuition.

The Real Costs of Raising Kids

As your children grow, so do their needs, and the price tags that come with them. Beyond diapers and daycare, parents often find themselves managing a growing list of financial demands:

• Extracurriculars & Activities: Sports leagues, music lessons, travel teams, and camps all add up.
• Everyday Living: Teenagers eat more, need more clothes, and come with higher grocery and utility bills.
• Back-to-School & Tech: Each new school year brings shopping lists and more expensive technology, from tablets in elementary school to laptops in high school.
• Transportation: A first car, driving lessons, insurance, these costs sneak up quickly.
• Holidays & Milestones: Birthday parties, graduations, and holidays come with their own spending rhythms.

These are all real, meaningful moments in a child’s life. And they’re worth planning for just as intentionally as you would for college.

After College: New Goals Begin

The financial journey doesn’t end with a college diploma. For many parents, helping their adult children through the next phase of life is a continued priority. That might include:

• Assisting with a down payment for a first home
• Contributing to a wedding or honeymoon
• Helping with childcare expenses as they start their own family
• Offering support during career transitions or graduate school

Whether you plan to offer financial help or just want to be in a position to do so, having a broader savings strategy is key.

How to Save for Short-Term vs. Long-Term Needs

So how do you prepare for both near-term costs and those further down the road? It starts with understanding where to put your money based on when you’ll need it.

Short-Term Savings (0–3 Years)

These are the expenses that pop up regularly, some expected, others not. Think: summer camps, holiday travel, new sports gear, or next year’s school laptop.

For these kinds of costs, high-yield savings accounts (HYSAs) are your best friend. They’re:

• Safe (FDIC-insured)
• Liquid (easy to access)
• Better earning than traditional savings accounts

If you’re saving from cash flow each month, set up a few named savings buckets (like “School Costs” or “Summer Activities”) and automate your contributions.

Long-Term Savings (3+ Years)

If you’re planning for larger milestones, like helping with a home purchase, wedding, or future family support, you’ll want your money to work harder. That’s where taxable brokerage accounts come in.

With a brokerage account, you can:

• Invest for long-term growth using diversified ETFs
• Maintain flexibility (no penalties for early withdrawals like a 529)
• Contribute regularly or use windfalls like bonuses or tax refunds

Brokerage accounts are especially useful when you want to keep money accessible before retirement age but beyond short-term spending.

Final Thoughts: Planning for a Bigger Picture

Saving for college is just one part of the financial journey you’ll take with your children. By thinking more broadly, and more proactively, about all the phases of life they’ll go through, you can be better prepared to support them, whether it’s a new pair of cleats or their first mortgage. At CPJ Financial, we help parents build customized cash flow and investment strategies that balance today’s priorities with tomorrow’s goals. Whether you’re navigating rising expenses, planning for future milestones, or just want to feel confident in how you're allocating your resources, we offer flat-fee, fiduciary guidance that’s always centered around your life and your values.

‍