Coast FIRE Calculator: With Kids
Planning for Coast FIRE with children comes with unique considerations that generic calculators often miss. Your situation affects everything from your FI number (we've pre-filled a typical estimate of $65k/year in expenses) to your realistic savings capacity ($1200/month is common for this scenario). Our calculator lets you adjust these defaults to match your specific reality.
Why This Matters
Having children changes your Coast FIRE math but doesn't derail it. Yes, your FI number is higher due to increased expenses. But expenses aren't linear - they peak when kids are teenagers and then decline as they become independent. Smart strategies include keeping 529 education savings separate from your FIRE savings, taking advantage of child tax credits, and modeling your expenses decreasing over time. Many parents find that pursuing Coast FIRE while raising children teaches valuable lessons about money and priorities.
Key Considerations for Your Situation
Keep education savings (529 plans) separate from your Coast FIRE savings. These are different goals with different timelines. Prioritize your retirement first - children can get loans for college, but you can't get loans for retirement.
Model your expenses with a realistic timeline. Costs typically increase through the teenage years (activities, cars, higher food consumption), then drop significantly as children become independent. A 25-year-old's expenses look very different than the same family five years later.
Children don't prevent Coast FIRE - they just change the math. Many parents find that having kids actually motivates more intentional financial behavior. The clarity of wanting to provide options for your children can be powerful motivation.
Use children as accountability partners. Teaching them about saving, investing, and financial independence creates natural opportunities to reinforce your own habits. Many Coast FIRE families find that the journey becomes a shared project.
Family Financial Strategies
The 529 vs retirement savings debate: prioritize your retirement first. Kids can get scholarships, loans, or work - but you can't borrow for retirement.
Dependent Care FSA allows $5,000/year in pre-tax childcare expenses. At 22-32% marginal rates, that's $1,100-1,600 in annual tax savings.
Children become tax-advantaged investors at 18: they can have Roth IRAs with earned income (babysitting, lawn mowing). Gift them money to max their Roth and start compounding.
Model "the countdown": childcare costs for a 3-year-old are temporary. By 12, that expense is gone. Your savings rate likely increases significantly over time.
Healthcare for Families with Children
Family ACA plans become affordable with subsidies: a family of 4 earning $100k pays ~$700-900/month for a Silver plan after subsidies - comparable to many employer plans.
Pediatric dental and vision are included in all ACA plans - adult dental/vision are not. Budget separately for adult dental care.
FSA for dependent care ($5,000) and healthcare FSA ($3,050) can both be used. The dependent care FSA covers childcare, not healthcare - know the difference.
Children can stay on your plan until 26. Once they're off, your premiums drop significantly. Model this transition in your Coast FIRE projections.
Healthcare costs vary significantly by state, age, and family size. Factor in premium subsidies, deductibles, and out-of-pocket maximums when planning your Coast FIRE budget.
The Psychology of Family Coast FIRE
Kids notice everything and understand little: they see you saying "no" to things their friends have but don't understand why. Age-appropriate money conversations help.
The goal isn't to deprive your kids - it's to model intentionality. Some families pursuing FIRE still take vacations and celebrate birthdays. Choose what matters.
Partner alignment on spending is essential: disagreements about kids' activities, clothes, or experiences become proxy wars about values. Talk explicitly about priorities.
Your "why" evolves: Coast FIRE might start as "escape my job" and become "be present for my kids." Let your motivation mature as your life does.
How Coast FIRE Works
Compound Growth
Your investments grow exponentially over time. Einstein called compound interest the 8th wonder of the world.
The Coast Strategy
Once you hit your Coast number, you never need to save for retirement again. Work for passion, not survival.
Freedom Date
Discover when you can switch to part-time work or pursue your dreams without financial anxiety.
Frequently Asked Questions
Can I achieve Coast FIRE with children?
Yes - Coast FIRE is achievable in any situation with the right strategy. With Kids households have unique challenges, but many people in your exact situation have reached financial independence. The path may look different (different timeline, different strategies, different FI number), but the destination is the same. Our calculator helps you plan around the specific factors that affect your situation.
What's a realistic savings rate with children?
We've pre-filled $1200/month based on typical with kids situations, but this varies widely. Generally, aim for 15-25% of your income if possible, adjusting for your specific circumstances. Some months you may save more, some less - consistency over time matters more than hitting an exact percentage every month. Use our calculator to see how different savings rates affect your timeline.
How much should I budget for annual expenses with children?
We've estimated $65k/year for with kids households, which is typical for this situation. This number directly determines your FI number (Annual Expenses ÷ 0.04 = FI Number). The lower your spending, the lower your Coast FIRE target. Track your actual spending for a few months to get a realistic number - many people are surprised (in either direction) by their true expenses.
What's the best Coast FIRE strategy with children?
The fundamentals remain the same regardless of situation: 1) Maximize the gap between income and expenses, 2) Invest consistently in low-cost index funds, 3) Take full advantage of available tax-advantaged accounts, and 4) Stay the course through market volatility. What differs with children are the specific tactics - which accounts to prioritize, how much emergency fund to keep, what risks you can take, and what timeline is realistic.
Your Next Steps
Separate your Coast FIRE savings from education savings - these are different goals.
Model your expenses over time, accounting for rising costs through teenage years then decline.
Consider using your FIRE journey as a teaching opportunity for your children.
Ensure you're prioritizing retirement over college savings - you can't borrow for retirement.
Related Tools & Resources
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Use Calculator NowSources
- [1]Retirement Savings: Choosing a Withdrawal Rate That Is Sustainable(1998)
- [2]Determining Withdrawal Rates Using Historical Data(1994)
- [3]Historical Returns on Stocks, Bonds and Bills
- [4]Bureau of Labor Statistics Occupational Outlook
- [5]Safe Withdrawal Rate Series
- [6]Healthcare.gov Marketplace
- [7]TSP.gov - Thrift Savings Plan
- [8]IRS Publication 571