If you have never subscribed to the idea of following budgeting tips for families, now’s the time to hop on the tram. Recent economic realities are unforgiving of carelessness with money, so it takes serious planning to sidestep uncertainties by appropriating resources for financial stability.
Importance of Budgeting
Budgeting is a key tool for attaining financial stability for individuals and families. It is not for the rich alone but helps appropriate financial resources, no matter how meager or vast.
In simple terms, budgeting entails drafting a financial plan for efficiently utilizing income for present and future economic stability. So, a budget is usually a document that contains all income sources and amounts and simultaneously proposes allotments of resources. On the surface, a budget helps check our spending habits while considering the big picture of financial goals.
Here are 10 family budgeting tips that you’ll definitely find helpful.
1. Differentiate Between Essentials and Non-Essentials When Drafting Your Family Budget
Itemize all your expenses and order them according to their level of propriety. The non-essentials on the list then become easy to find. So, next time the family needs to sacrifice some expense to create an allowance for some capital-intensive goal, it’s easy to identify what goes under the chopping block. Where possible, adopt this pattern of priority when drafting the family budget.
2. Cancel Redundant Subscriptions and Be Picky With Streaming Platforms
When we are desperate to use a service, it is easy to enroll in a subscription service without remembering it. This would be an excellent time to go through your PayPal account on your iPhone, look at your bills, and cancel those unused services. In addition, having multiple active streaming services running can be financially suicidal. Endeavor to stick to one.
3. Take Advantage of Discounts and Promos, and Make It a Habit Always To Compare Prices
At every point in the year, companies try to drive up sales of their products and services by offering variants of discounts and promos. So, always keep your eyes peeled for such offers. Likewise, we now have comparison sites that help compare the prices of services and products multiple companies offer. Endeavor to always hunt for a bargain.
ALSO READ: 8 Best Budgeting Apps for Teens
4. Be Flexible With Brand Loyalty and Hunt for Bundle Deals
No rule says you must buy all your groceries from Walmart! For example, if your family can get competitive prices on fruits and veggies from the local farmers’ market, by all means, buy there. Some companies offer bundle deals, particularly on services.
For example, some telecommunications companies now bundle broadband, phone, and even streaming services into a single subscription plan. Count the cost, and you may end up saving big on those subscriptions.
5. Give Your Kids Pocket Money and Teach Them How To Make a Budget
Teach your kids financial responsibility by giving each of them an allowance. There’s no age too young for initiating this practice with your kids, so far they already understand the value of money. The bottom line is to teach them the potential of money and the benefits of saving and delayed gratification.
In simple terms, give your kids some money and teach them how to make a budget. Also, teach them how to draft a weekly budget for their pocket money. Alternatively, they could learn with the help of budget apps.
6. Use the Family Budget as a Template To Help Kids Monitor Their Personal Expenses
To help your kids better understand the importance of a family budget, ask them to assist you with tracking and reviewing the budget draft. This will subtly help inculcate in kids the budgeting traits that parents have built over the years.
You don’t want to be seen as breathing down your kid’s neck. So, also use such budget tracking sessions to find out how well your child is relating to their money.
7. Encourage Your Kids To Work and Teach Them To Save Towards a Goal
When your child gets old enough to get a part-time job, encourage them to do so. For kids still too young, allot specific responsibilities to them around the house and give them allowances as a reward.
However, as they earn money, monitor their spending habits and ensure they save. You can build their saving muscle by encouraging them to save money towards a goal. For example, a child may save money to buy a bicycle or a new skateboard.
8. Keep Family and Personal Celebrations Simple; Practice What You Teach
Celebrations are inevitable; they are usable ways of acknowledging the joyous seasons of life. However, it is essential to teach your kids circumspection in spending. So, when celebrating birthdays, weddings, thanksgiving, or Christmas, do well to cut your costs.
In addition, parents should avoid neglecting or downtoning their children’s celebrations while throwing lavish parties for themselves. It’s only fair that the same financial rules apply to the entire family.
ALSO READ: 9 Tips To Stretch Your Food Budget
9. Embrace the idea of buying vintage or second-hand items
It is possible to get outstanding deals on used items. Items like furniture, clothes, sports gear, and books can come at competitive prices when you buy second-hand. Most of these items are usually in pristine condition and function, as well as a new one.
Similarly, some stores and restaurants offer heavy discounts on surplus unsold food. This could be a great avenue to stretch your food budget.
10. Make Extra Cash From Decluttering Your Living Space
Most families have items in their possession that they’ve not used in years and are only gathering dust. Unless, of course, the item has some sentimental value, you might as well sell it off on an online marketplace like eBay.
These 10 budgeting tips for families will help assure your financial security and inspire your children to aim for lofty financial goals. Family budgeting is just one way to build a financially resilient family.