Family life can be enormously expensive, particularly if you haven’t adopted the right habits.
Taking financial matters seriously can make a big difference to your family’s quality of life, as well as the prospects of your children in the long run.
But exactly which steps will make the biggest difference? Let’s consider a few good ways to spend less.
Create a Comprehensive Family Budget
If you don’t know how much you’re spending, then you’ll almost certainly find it easier to spend more impulsively on things that don’t contribute much value in the long term.
The most important step in avoiding this is to create a family budget. This should include all of your areas of spending as well as your income. Once you have an overview of your financial life, you might be able to spot places where cuts can be made.
It can be useful to categorize your spending as ‘essential’ or ‘non-essential’. You can use budgeting tools and apps to make this easier.
Save on Transportation Costs
Your vehicle can place a strain on your family finances. You’ll need to pay to fuel it, repair it, insure it, and occasionally wash it.
You can make the switch to a more economical, affordable vehicle, or you can do more walking and cycling to cut out certain journeys.
Where the cost of insurance is concerned, it might be a good idea to shop around. If you have more than one car on the driveway, you might instead opt for multi-car insurance from the same provider. This will help to drive down your costs through economies of scale.
Reduce Household Expenses
The home might also be a financial liability, especially during an age of very high energy prices. Energy is an ‘essential’ area of spending—but that doesn’t mean that you can’t limit your costs.
See if you can save by switching providers, by insulating the loft, or by installing new doors or windows.
Grocery shopping is another area of essential spending that can be slashed. Try to bulk buy non-perishable items.
Do small shops for the perishable ones so that your waste is limited. Use discount codes and loyalty schemes to drive down your bills further.
Plan Cost-Effective Family Activities
There are certain kinds of leisure that don’t cost the Earth. You might consider visiting your local park or a free museum.
Check whether there are any free local festivals upcoming. Many of the country’s natural assets, like forests and hillsides, are free (or at least, very cheap) to access—so why not take advantage of them?
Implement Smart Shopping Habits
We’ve already mentioned the danger of impulse spending. The best way to avoid this temptation is to plan your spending in advance. Make sure that you have your meals planned.
This will make it more difficult for you to justify extra spending. Consider the second-hand market for things like furniture and children’s clothes. It might be that you can find brilliant items at very low prices.
