Having a child is sure to be one of the highlights of your entire life. It is also extremely expensive. From the moment your child arrives in the world, he or she will be putting at least a mild strain on your finances. It’s worth it, of course, but that doesn’t mean there aren’t struggles along the way. Learning how to save money with kids is beneficial, and these few simple saving tips can help.
How Raising Kids Can Be Expensive
Raising kids can definitely be expensive, with costs ranging from basic necessities like food and clothing to additional expenses for education, extracurricular activities, and healthcare. From diapers to college tuition, parents often find themselves constantly budgeting and making sacrifices to provide the best opportunities for their children. While it may seem overwhelming at times, the joys and rewards of parenthood outweigh any financial strain that comes with raising a family.
Can You Save Money When You Have Kids?
The good news is it is possible to save money when you have kids by implementing careful budgeting strategies, reviewing spending habits, and making wise financial decisions. There are numerous ways to cut costs without sacrificing the well-being of your children, such as buying items secondhand, taking advantage of discounts and sales, meal planning to avoid unnecessary dining out expenses, and setting up a college savings account early on.
By being mindful of where your money goes and finding creative solutions for saving, parents can build a secure financial future for their families while still providing a loving and nurturing environment for their children.
10 Tips on How to Save Money When Raising Children
#1. Buy Secondhand Clothing
There are plenty of consignment shops around where you can find good-quality kids’ clothes. There is no reason to pay full retail for kids’ clothes when they grow so quickly. Many consignment shops may even give you credit when you bring clothing your kids can no longer wear, so it’s a win-win that saves money.
#2. Welcome Hand-Me-Downs with Open Arms
Most likely, you’ll have at least a few friends or family members who are more than willing to pass along things that their children no longer use or need. Don’t make the mistake of turning down these offers, thinking that your child needs to have everything in brand-new condition. Sure, you’ll want to buy some new items, and you’ll get some as gifts, but hand-me-downs are a great way to save some money along the way.
#3. Don’t Go Overboard on Kid’s Birthday Parties
It is easy to get caught up in the excitement of your child’s birthday and want to go all out. However, when you do, your child will come to expect this every year. It is better to set a budget and stick to it. You should also take advantage of sales and discounts to save on gift expenses.
#4. Find Free Local Community Activities
Many communities have a wide range of free activities for kids and families. For example, check out what is going on at the local library and find books for them to read. If you have a community arts center, they often offer free art classes and other fun things for kids. You may also want to explore free outdoor activities like team sports and kids’ parks events.
#5. Buy in Bulk
Another way to save money with kids is to buy certain items in bulk, especially things you use frequently, like diapers, toilet paper, and paper towels. You should also explore how much you could save by purchasing various food items in bulk, such as rolled oats, flour, and rice.
#6. Use Coupons and Take Advantage of Sales
Get into the habit of shopping sales ads and only buying items when they are on sale. Many coupons coincide with weekly ads, so you can save even more on sales items. You will also want to sign up for cash-back rewards apps, like Ibotta, where you can earn cash back on in-store and online purchases.
#7. Prepare Meals at Home
Eating at home is another way to save money with kids. You can make meals that feed a family of four for under $20 if you take advantage of grocery store sales items and use coupons when available. Limit eating out as a reward, and be sure to check for Groupons or other discounts or coupons to help save money when dining out. Learning to bake bread and granola and make soy, oat, or nut milks will save a lot of money and teach your children useful cooking skills.
#8. Teach Children the Value of Money by Creating a Budget
Don’t be afraid to get your children involved in helping create the family spending budget. You can also teach them how to create a budget for their own money if you give them a weekly allowance.
#9. Plan Ahead
Do yourself a favor and get in the habit of packing a diaper bag full of everything you think you might need during any given outing. You should also continue to do this as your kids get older by packing snacks, drinks, and a change of clothes. In addition, remember to pack things for yourself like headache relief tablets, drinks, sunglasses, and an umbrella. Being prepared helps you avoid stopping somewhere and spending money on something you forgot.
#10. Keep Your Vehicle Longer
It can be tempting to want to get a new vehicle every four to six years. However, keeping your current vehicle longer after it is paid for frees up extra money to save, take a family vacation, or pay off other debts.
How to Create a Budget
It is not difficult to create a budget. All you need to do is add up your regular monthly expenses, such as utilities, housing payments, insurance, car payments, credit card payments, and anything else you pay monthly. Next, decide how much you want to spend on groceries. Remember to explore savings options like dropping to a lower cellular plan or dropping cable and using streaming services.
Once you have your budget in place, remember to review it regularly. Your goal should be to reduce your outgoing expenses whenever possible when spending money. Last, and equally important, set amounts to deposit into a savings account and a separate checking account used for emergencies.
Another great way to teach children the value of money is to let them pay for the things they want out of their allowance. When they can see how much that toy or game costs and how much they need to save, they appreciate it that much more.
Saving Money When Raising a Family Is Possible
There is nothing in life that compares to the excitement (and stress) of having a child. To make sure you are prepared for the financial side of this challenge, be sure to use the eight money-saving tips above. By using these tips often, you will become better at budgeting, controlling expenses, and saving money long-term. You should also include your kids with family budgeting and spending to help them start developing good spending and saving habits from an early age.
Develop Better Savings Habits with Help from TPFCU Today
TPFCU has free checking accounts and savings accounts that pay interest with no minimum balances. We also have kid’s savings accounts to help you teach your kids the importance of setting aside money. Another great benefit of becoming a member of TPFCU is we offer a wide range of services and loan products at low rates to help you and your family long term. Stop by one of our branches to see how easy it is to become a member or open your account online now.
