How to manage costs as coparents

Whether you’re raising your children in separate households or under one roof, coparenting comes with plenty of difficulties—and that includes managing costs. Yet money management doesn’t have to be a struggle for coparents—in fact, managing costs together can be a great chance to work as a team with a common goal. To help you out, we’ve put together a guide on how to manage money while coparenting. 

Coparenting is when two parents work together to raise their child or children, despite not being partnered romantically. The coparenting model is often used to describe separated or divorced parents, but may include many different types of parenting models. The basic idea is that both parties have an active role in their children’s lives. Successful coparenting hinges on doing your best to forge a positive relationship with your coparent and focusing on the wellbeing and happiness of your kids.

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Dividing up costs as coparents may seem daunting, but with a little organization and effective communication, you’ll find that it may not be as hard as you think. Here are 5 top tips for managing your finances while coparenting. 

Work together to create a list of shared costs for your children. This might include school fees, clothing, and after school classes. Bear in mind that you might have different priorities for what to spend money on when it comes to your children, so it’s important to be respectful of one another and be realistic—not only about what you can afford, but what kinds of money-related values you want to instill in your children.  

Once you’ve gotten a good idea of what your costs are, decide how to divvy them up. How you do this will vary depending on what works for your family. For example, it may be easier for you to have a joint account or a shared sub-account to pay for child-related expenses. Others will find it simpler to keep their finances separate and divvy up bills equally. Depending on your arrangement, you may discover that one parent needs to chip in more if they have a higher income, or if they aren’t able to do as much childcare. 

Things change, especially when kids are involved. And when the unexpected happens, it’s important to be flexible. Talk to each other about any changes that occur, and be willing to adapt if necessary. However, like with any relationship, it’s important to maintain your boundaries and ensure that no one feels taken advantage of. Take the needs and circumstances of your coparent into account, but stand up for yourself and your priorities as well. 

Whether parents are together or apart, it’s easy to let the little things distract you from your common goal. However, it’s a good idea to model the kind of behavior you want to teach your kids. Though everyone has different approaches toward money, try to adopt the same general strategy to maintain a sense of consistency. 

For example, make an effort to align on things like allowances, special treats, and so on. Also, make sure you’re both clear on how much you want to share with your kids about your own finances, and what you want to teach them. Need help? Check out our blog post on teaching kids about money. 

Money can be a stressful topic, regardless of what your family structure looks like. However, if disagreements come up, try to stay calm and work together to find a solution. Be receptive to feedback and feel empowered to speak your mind. If money is tight, work as a team to find areas to cut back on, or check out government programs that might help relieve some financial stress. If arguments keep arising when it comes to money, don’t hesitate to outsource support from a professional who can help mediate. After all, you’ve got an excellent common priority, and two heads are often better than one!

When you’re dividing up costs, setting up a budget can be a great way to help keep your spending on track and diffuse tension over the long-term. When developing your budget, it’s helpful to list all the possible costs for your kids for the coming 6-12 months. There will always be surprises, but it’s still helpful to note down fixed costs, such as:

• Childcare
• School fees
• School items (e.g., books, uniforms, stationary, etc.)
• After school activities
• Hobbies or music lessons
• Clothing and footwear 
• Healthcare costs
• Vision care, such as eye tests, glasses, or contact lenses
• Pocket money
• Birthdays and parties
• Mobile phones or electronics

You can use last year's expenses as an indication for the upcoming year, and factor in any increase you’re expecting, such as more pocket money or a new computer for school. If you realize that your costs are too high, work together to figure out what budget cuts will be possible while maintaining the stability you both want for your kids. 

Once you’ve listed your costs, decide how to manage the payment. You could agree to each take certain costs and check back later on how much each of you has spent. Another option is to have one parent cover the costs and get reimbursed with a monthly lump-sum payment. You might find that an ad-hoc style works best for your family. Remember, the financial arrangement will be personal to you and your situation, so discuss some options and agree on the best approach for your family.

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Looking for a flexible bank account designed for managing money on the go, and sharing funds? Discover N26—a 100% mobile bank that’s great for modern families. N26 bank accounts offer a range of saving and budgeting features to support families, like N26 Spaces sub-accounts, where you can set aside money alongside your main account. For coparents, Shared Spaces make it possible for multiple N26 customers to pool their money in a designated sub-account. It’s a great way toorganize funds for camp, childcare, or everyday family expenses. Check out all of our bank accounts today and find the one that’s right for you.