4. Choose frugal fun
Vacations and entertainment are two big budget traps for families. Fearon says one of the easiest ways to save money on family expenses in these areas is to stop overthinking. Entertainment or travel doesn’t have to be extravagant to be fun and memorable.
“We think that if it doesn’t consist of this or that then our kids won’t have a great family memory,” Fearon says, “but the truth is, kids just want to be kids.” Her family loves weekend camping trips, which don’t cost much and aresimple ways to unwind.
Swapping out a trip to the movies or an amusem*nt park with a bike ride or a museum visit on a no-admission day are money-saving tips for families thatdon’t require a huge lifestyle overhaul.
If you don’t have the budget for a pricey vacation, try an inexpensive staycation at home. Pitch a tent in the backyard or be a tourist in your hometown. In addition to museums, state parks and historical sites often have low or no admission fees, and you can save even more by packing a lunch instead of eating out.
5. Plan ahead for the holidays
If you’re thinking about how to save money while raising a family, prep for the holidays early to avoid a shopping frenzy late in the year. Fearon says she sets a spending budget for gifts, which typically ranges from $400 to $600. She keeps aseparate savings accountfor these funds and budgets a set amount of money to add to the account each pay period to reach hersavings goal.
“That way, when it’s time to buy gifts we know how much we can afford to spend,” she says, “and there’sno stress in Januaryfrom trying to pay back credit card bills.”
Shopping earlier in the year is another way to snag deals when you’re looking for ways to save money on family expenses. Memorial Day, the Fourth of July and Labor Day are all ripe times for sales. If you prefer shopping online, some websites have special sales in the summer which provide opportunities to rack up savings on gifts.
If you plan to swipe a card for holiday shopping, be smart about it. You could use a cash back rewards debit card, such as the one that comes with aDiscover® Cashback Debitaccount, or you could use a credit card. You can then use your reward as a way to save money on family expenses in the new year.
Remember to set a budget if you’re spending on credit so you don’t go overboard. Limit yourself to what you can afford to pay in full to avoid interest charges.
6. Hack your housing costs
Housing is likely to be your largest expense as a family, and there are several money-saving tips for families so you can trim these costs.
You could install a programmable thermostat tokeep your heating and cooling costs down. Set the thermostat to lower the temperature automatically when you’re out of the house or turn off the air conditioning when you don’t need it. For even bigger potential savings, refinancing your mortgage could lower your monthly payment.
If you’re open to something more drastic, you could think about downsizing to a smaller home or rental—perhaps after one or more children have left for college—as a way to save money on family expenses. You could also consider using your home to generate income by renting out a room on a vacation rental website. If you’re considering this route, be sure to check your local housing laws to make sure it’s allowed. Many cities, counties and municipalities have restrictions on short-term rentals.
When considering how to save money while raising a family, taking in a foreign exchange student may be another option if the exchange program offers you a monthly stipend for hosting. The amount of the stipend may vary based on the program, your location and the school the student attends while they’re staying with you.
7. Talk budgeting and saving with your kids
Learning how to save money while raising a family isn’t just for moms and dads. You can also get children involved by having regular budget talks. You don’t have to get into all of the nitty-gritty details about your income or expenses, but you cango over the basics of spending and saving. What children learn about money when they’re younger can come in handy later when they’re raising families of their own.
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