How to Stretch Your Family Budget
A family is a great joy, but it comes with some financial realities. Your budget suddenly becomes stretched in ways you didn’t expect. You may have to pay for cots, car seats, additional groceries, school costs, medical expenses, childcare, and even manage on just one income, if a parent chooses to stay at home.
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Take heart if you feel overwhelmed by the task of keeping your family’s finances under control. You can stretch your dollar without sacrificing the quality of your life or your sanity by using simple and practical strategies. Glen James from Sort Your Money Out shared with me his best tips on how to spend smarter.
Let’s get started!
1. Save Money by Eating Smarter
The food budget is one of the most important and flexible parts of your family’s budget. It’s easy to fall back on convenience foods or takeaway meals when you have a busy family.
Glen stresses that these quick fixes add up quickly. He recommends that you plan your meals strategically.
“Choose to eat out only two times a week,” Glen recommends. It could be for a Sunday brunch or a Saturday night treat. Eating out will become a fun experience rather than a habit.
Glen emphasizes the importance of preparation at home: “Never go shopping without two things, a full stomach and a grocery list.” Shopping while hungry can lead to impulse purchases and wasteful spending. A list helps you focus on what you need.
Planning your meals will help you achieve this. Plan your meals each week to avoid last-minute scrambles or food waste. Batch cooking can also be a lifesaver. Prepare large portions at the weekend, freeze leftovers, and have quick, homemade meals when you’re busy.
You want to have fun and make it social? Glen suggests collaborating with a friend to prepare meals. Cook double batches, swap out meals, and arrange playdates. You’ll not only save money and time, but you will also build community.
2. Credit Cards: Beware! Don’t Fall into the Debt Trap
When you are stuck at home with your kids, it’s easier to justify spending on credit cards. Online shopping is also a simple click away. When you’re having a stressful day, new purchases can bring a small moment of joy.
Glen warns, however, that credit cards can be a trap for many families. The mentality of “buy now and worry later” often leads to financial stress and mounting debt.
“The game of credit cards has more victims than winners,” Glen bluntly says. You can’t defeat the ban, but you can defeat your money habits if you stop overspending!
You can do this by pausing before each purchase and asking yourself: “Do I need it?” You can save money by waiting to buy it.
3. Review Your Energy Plan and Cut Hidden Costs
Energy bills can soar when kids are at home for longer periods, whether it’s due to illness, homework, or simply hanging out. All of these things add up: heating, cooling, lighting, electronic devices, etc.
Glen encourages families to review their energy plans at least twice a year.
You have to be alert because energy companies don’t always notify you of new, cheaper plans. Most providers offer discounts if you pay on time or set up automatic payments. This can result in significant savings.
Simple energy-saving practices, such as unplugging devices and turning off lights in rooms that are not occupied, or using energy-efficient appliances, can further reduce costs.
4. Cut Your Subscriptions – Entertainment Doesn’t Need to Break the Budget
Families have more options for entertainment than ever before, but they come with a cost.
Glen argues that streaming services are a cheaper alternative to cable and satellite TV for many families. Netflix and Stan offer a lot of family-friendly programming for less than $40 per month.
“Foxtel has died unless you are really into live sport,” Glen jokes. He emphasizes that cutting costly subscriptions is a great way to save money.
Check your subscriptions for apps on your tablet or phone. People often forget to add up recurring charges like premium features or extra storage for apps and services. They may only be a few dollars per month, but these charges add up over time and drain your bank account.
5. Compare Chemists to Save on Medicines and Consultations
Costs can mount up when you take your children to the pharmacy or doctor regularly.
Glen suggests comparing the prices of name brands and discount chemists. Surprisingly, discount chemists may not always be cheaper. So, it pays to compare prices locally.
“Find local pharmacists you can trust,” Glen recommends. By reducing the number of unnecessary doctor’s visits, you can save money. If you have minor illnesses like rashes and colds, your pharmacist can give advice or suggest over-the-counter treatments to save money on expensive medical consultations.
A local pharmacist familiar with your family may be able to offer tailored advice and help you manage prescriptions. They may also provide loyalty discounts.
6. Review Your Insurances to Get the Best Deals for Your Family
Families must have insurance, but if you don’t review it regularly, the premiums can become a significant portion of your budget.
Glen recommends that you check with your insurance provider to make sure you are getting the best package deals. Insurance bundles that include home, auto, and contents can save you money.
“Increasing your excess may reduce premiums in some cases,” Glen says, but cautions that you should have enough savings to cover any excess.
Glen recommends that you speak to a financial advisor about income protection or life insurance. Some policies are paid for through superannuation. This can help families with tight budgets reduce their monthly expenses.
Small Changes That Add Up
- Take advantage of cashback and reward programs. Many banks and supermarkets offer points or cashback for purchases. They can accumulate over time, allowing you to stretch your budget.
- Buy second-hand to save money: Children grow quickly, so you can buy clothing, toys, and furniture at community sales or in second-hand shops.
- Celebrate birthdays and holidays with DIY gifts: They don’t need to be expensive. Make your decorations, organize potlucks, and do low-cost activities.
- Create a budget for your family: Discuss with your partner the financial goals you want to achieve and any limits. Communication about money is key to avoiding surprises and stress.
It is Possible to Have a Family and Still Save Money
You may need to tighten your budget more than ever when you have children, but that doesn’t mean that you can’t still enjoy life and avoid financial stress. You can feel more in charge of your finances with a little planning, smart decisions, and regular reviews.
Glen’s advice is to plan your meals, avoid the credit card trap, and review your bills. Also, build relationships with local service providers. These small changes can add up over time to huge savings.
Money worries can make parenting difficult. These tips will help you and your family prosper without going broke. Enjoy those moments with your child, knowing that your finances are in good order.
