Sinking funds for kid costs

Many "unexpected" costs aren't unexpected at all: they happen every year. A sinking fund saves a little each month so the money is there when the bill arrives.

Set them up

1. List yearly costs: back-to-school, birthdays, holidays, activities, camp, car registration
2. Estimate each from last year's spending
3. Divide by the months left until you need it
4. Save that amount each month, in a separate savings account or tracked sub-accounts

Example

If back-to-school costs about $480 and it's 8 months away, set aside $60 a month. When August comes, the money is waiting.

General educational information, not financial advice. Your Money Stretcher isn't paid by any bank, lender or company mentioned here.