Past research shows that income segregation between neighborhoods increased over the past several decades. In this article, I reexamine income segregation from 1990 to 2010 in the 100 largest metropolitan areas, and I find that income segregation increased only among families with children. Among childless households—two-thirds of the population—income segregation changed little and is half as large as among households with children. I examine two factors that may account for these differences by household composition. First, I find that increasing income inequality, identified by past research as a driver of income segregation, was a much more powerful predictor of income segregation among families with children, among whom income inequality has risen more. Second, I find that local school options, delineated by school district boundaries, contribute to higher segregation among households with children compared to households without. Rising income inequality provided high-income households more resources, and parents used these resources to purchase housing in particular neighborhoods, with residential decisions structured, in part, by school district boundaries. Overall, results indicate that children face greater and increasing stratification in neighborhood contexts than do all residents, and this has implications for growing inequalities in their future outcomes.