Starting a family and having children brings joy and creates lasting bonds, but it also introduces significant financial responsibilities. Children increase household expenses through necessities like food, clothing, healthcare, and education, while potentially decreasing household income if a parent reduces work hours. A solid budget is crucial to meet your family’s needs, prepare for future expenses, and teach financial responsibility. Here are nine ways you can budget when you have children.
Track expenses: The first and most important step to financial budgeting in any situation is tracking your expenses. Keep a detailed record of all spending to identify areas where you can cut back. If you can use an app that allows you to track your earnings and spending in one place, it’ll make budgeting a lot easier.
Plan meals and grocery shop strategically: With back-to-school season upon us, having a strategy when food shopping is essential to financial budgeting. There are dozens of grocery shopping budgeting tips and the ones you choose will be based on your needs. One of the best ways to grocery shop strategically is to create a weekly menu and then go to the store and buy the necessary ingredients.
Implement a waiting period for non-essential purchases: With one-click purchases and two-day delivery being the norm these days, impulse buying is easy. When considering a non-essential purchase, it’s best to sleep on the decision for at least a couple of days first. Two popular budgeting rules to help with impulse buying are the 48-hour rule and the 30-day rule. This can help reduce impulse buying.
Save for big expenses: Save throughout the year for holidays, back-to-school shopping, family vacations, birthdays, and more. The majority of Americans in each generation have less than $1,000 in savings and find it more and more difficult each year to set aside savings. If you can find an app that allows you to easily set aside savings from each paycheck, it can be very helpful in your budgeting plans. In fact, 67% of DailyPay users say that DailyPay helps to make it easier to save a portion of their income.
Seek out family discounts: Many attractions and services offer family rates. Yes, it’s true that having children can increase your expenses, but it also means you can take advantage of family discounts. Museums, libraries, national parks, movie theaters, restaurants, public pools, zoos, aquariums, bowling alleys, amusement parks, skating rinks, and more – even flights – may have free admission and child-friendly programs.
Embrace second-hand: Consider purchasing clothes, toys, and equipment from thrift stores or online marketplaces or utilizing hand-me-downs. Hand-me-downs from older siblings, cousins, or friends provide a free and convenient way to outfit growing children. This combination of second-hand purchasing and hand-me-downs not only stretches your budget but also promotes sustainability and teaches children about resourcefulness.
Carpool: Carpooling with other families and children offers a multitude of benefits for families and communities alike. It’s a smart solution that eases the financial burden of daily transportation costs, reducing expenses on fuel and vehicle maintenance. Beyond the economic advantages, carpooling fosters a sense of community, allowing children to socialize and build friendships outside of school hours.
Monitor your credit score: A good credit score is crucial when planning for children. It enables you to secure better interest rates on loans for a family home and allows you to finance your children’s education more affordably. Good credit also provides access to emergency funds, ensuring you can always meet your children’s needs.. By actively managing your credit, you’re building a stable financial foundation for your growing family and setting a positive example of financial responsibility for your children.
Create a family budget: Creating a family budget with your children’s involvement is a powerful way to teach financial responsibility and essential life skills. By including kids in discussions about income, expenses, and financial wellness goals, you transform budgeting from a mundane task into an engaging family activity. Through practical exercises, visual aids, and open discussions, kids learn about needs versus wants, saving, and making informed financial decisions.
To budget with children, start by tracking all expenses and creating a family-wide spending plan. Prioritize essential needs and long-term savings goals. Look for cost-saving opportunities in daily life, such as meal planning and free activities, and remember that consistency and flexibility are key to successful family budgeting.
