As parents, we know that having children is expensive. In fact, the cost of raising a child only keeps growing. Today, it is believed it costs an average $233,610 to rear a child through the age of 17. This price tag is hefty, especially when we consider that a lot of our earnings are remaining stagnant while costs and inflation only increase. This can be a little disheartening, especially when we are struggling to make ends meet, trying to save up to treat our kid to summer camp, starting a college savings account, or just cushioning the bank account for a rainy day. Thankfully, however, there are a variety of smart ways to save money for your children that can help us become more financially secure in the process.
To help balance your budget with the costs of raising kids, please scroll through the following list of smart ways to save money for your children:
Ditch name brands.
One way to save money is by purchasing generic or store brands when available. Over time, the difference will add up and allow you to save more money for your children.
Don’t wait to invest in a college fund.
When it comes to saving for college, time can be our best friend. When kids are young, we need to do our best to setup a college savings account so interest can accrue over the years and work in our favor.
Look for ways to diversify your investments.
Consider savings bonds, buying diamonds or gold, purchasing real estate, trading stocks, and traditional savings accounts to diversify your investments. This tactic offers a variety of ways to grow income while offering a little security if certain markets drop.
Get rid of debt and fees.
Try paying down debt so you can save money on interest. Also, avoid late and overdraft fees by paying bills on time or setting up recurring monthly payments. If you can’t make a payment, call the company and see if you can arrange a solution to keep from paying a penalty or suffering higher interest rates.
Roundup all of the spare change hiding in our couch cushions or the bottoms of purses and add the funds to a savings account.
Teach your children about money.
It is always good practice to start at the source and teach your kids good money habits. There are lots of different ways to teach based on your children’s ages by using games and activities for real life scenarios.
Always put saving first.
It sounds self-centered, but before paying your bills or going shopping, make sure you deposit money into a savings account- even if it is only $5 or $10. By paying yourself first, you will prevent overspending and ensure money is set aside.
Ditch the cable or satellite television.
Access a variety of kid friendly shows and movies online or by subscribing to a streaming service to save money. Also, don’t forget about local libraries to check out materials for free! If you can’t cut the cord, call your provider and ask for discounts that might be available.
Limit extracurricular activities.
This might be hard at first, but only allow kids to choose a few sports or clubs to join. This will provide children much needed downtime while saving a lot of money, hectic schedules, and added stress.
Avoid eating out.
Bring back family dinner and eat at home to prevent spending money on take-out and unhealthy food options. This will ensure we are giving our kids a healthy start in life while promoting family bonding.
Save money for our kids by doing things ourselves. We can tackle small home repairs or make our own healthy cleaners or detergents from simple ingredients like baking soda, vinegar, salt, and lemon juice. Over time, these efforts can really add up and enable you to save!
Children grow- fast! Don’t waste money on buying all new baby gear, clothes, sports equipment, or toys. Instead, shop garage sales, thrift shops, or online used sites for gently used items to save money and help the environment before purchasing new.
Say no to “stuff”.
One smart way to save money for your children is to take back control over what comes into our homes. Seriously, our kids don’t need every new toy, game, or clothing item. Be mindful with your purchases and don’t buy something unless it’s really needed.
Re-sell outgrown kids items.
We can make money by selling the clothing, baby gear, equipment, and toys our kids no longer need. Host a yard sale, take a load to a consignment store, list them online, or donate them to a charity for a tax ride off. Then, save the the money you make for your children.
Please share the smart ways you save money for your children below!