If you didn’t know that kids were going to be expensive, then you weren’t paying attention. Kids need stuff, kids want stuff, and the internet makes it too easy to see what other people have. But much of what kids think they need ends up being used only a few times before it is put aside for the next thing.
Your job as the parent is to manage your cash flow so that you have the money you need to take care of your family. If you are living paycheck to paycheck, managing that cash flow can be even more difficult.
1) Small Savings Make a Big Difference
Whether you keep a box or a bank account for loose change or spare dollars, don’t minimize the value of small savings. Find a way to put money aside that works for you in a way that lets that money grow. The two most important steps to this is putting the money aside and not touching it for random purposes. These small steps can help you start saving toward an emergency fund or your financial goals.
Consider tracking your progress with budgeting apps. They can make it easier to track spending and see how your efforts add up over time.
2) Set a Budget and Stick to it
There will always be something else, no matter how well you plan. But it is important to know the difference between wants and needs. Your child will say they need something that is a temporary want at best. Be the bad guy in the short term and it will allow you to be the good guy later when it really counts. That is also true for your own needs and wants.
If you haven’t already, start by creating a budget that works for your lifestyle. There are a lot of different budgeting methods out there, but something you might want to consider is a zero-based budget. This method helps you make sure that every dollar you have goes towards a specific goal. Check out the example below:
3) Stock up on Basics and Necessities During Sales
This includes school supplies and seasonal items. School items are standard and shelf stable. The sales are whenever they happen to be. The savings can be significant depending on the item. We kept a couple of shelves and a box for school supplies that we stocked up when items were on sale. Our children could come “shopping” there when they needed supplies for school.
We know birthdays and holidays are going to come every year. Buy the paper goods and decorations when they are on sale and put them away in a closet or drawer. It might be a financial stretch in the moment but in the long term you save money.
4) Manage your Due Dates
Did you know that you can call most of your credit card companies and utilities companies to request changing your due dates? If you have too many bills coming due around the same time each month, contact the vendor and see what your options are. Spreading out your billing due dates can ease your monthly financial stress significantly.
5) Be More Thoughtful about Spending on Non-Essential Items
We need so much less than we think we do. That is why so many people are surprised at how well they do, and how much they save, when they do a no-buy challenge. It is not about depriving yourself of a necessity but encouraging you to be more intentional about spending money.
Maybe you set a dollar and time limit, for example anything over $50 requires sleeping on it before making a decision. In the end, anything that is not an obvious necessity requires a discussion, and you’ll need to figure out what might work for your family to bring down spending on non-essential items. These money saving tips and ideas help you stay mindful and focused on what really matters.
6) Buy-Nothing and Free-Cycle Groups
I am a big fan of the local buy-nothing and free-cycle groups. They are an online resource for things, typically household items, that have a longer life cycle than one user. Whether these are kids’ toys, furniture, clothing, books, sports equipment, or the boxes these things came in, people are getting rid of items they no longer have use for that are typically in good condition or better.
These groups are also a good way to get rid of your own excess stuff. Pro tip – you would be surprised how often these groups have brand new items, proof that we buy more than we need.
Evaluate and Improve Your Budget
When is the last time you sat down and really evaluated your budget? If you are not spending the time creating a budget, tracking your income and expenses, it is difficult to determine what it would take to get out of the rut of living paycheck to paycheck. If you want to break the cycle you have to be willing to put in the effort and do the work to create a budget. There are many different ways to learn about budgeting for parents:
1 - CreditFresh has some good articles and resources on budgeting tips in the Money 101 section.
2 - Check out online financial education and websites.
3 - Talk to your friends to find out how they budget.
4 - Find a money mentor. This can be a friend, a relative, or part of a community group.
5 – Check if your public library has resources and programming. Sometimes libraries offer free financial programs with professional speakers.
6 – Check if your local community education has classes on budgets and personal money management. These classes are usually inexpensive and can be well worth the cost.
Disclaimer: The information contained within this article, including any references to companies or products, are for informational and educational purposes only and are not a substitute for individualized financial and/or legal advice. We are not a credit repair organization as defined under federal or state law and we do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit. We make no representation that we will improve or attempt to improve your credit record, history, or rating through the use of the resources provided through the FreshStart Blog or CreditFresh website. The views and opinions expressed by any guest contributors, as applicable, are solely those of the author and do not reflect the views of CreditFresh.
