As every parent knows, once you have children, the expenses increase dramatically and there are often unplanned amounts you have to fork out, such as for a sudden school field trip. Instead of trusting it to fate, it is far better to plan your budget carefully. This will allow you to afford some of the activities you could afford before the children arrived, like eating a meal out once a week. It will also avoid last minute panic and taking out loans to get through the month. Youâll need to learn how to use credit effectively.
In this guide, we will provide some tips for budgeting when you have children.
Expense Budget
Keep track of all your monthly expenses. People often overlook some of the areas where they are spending money. These instances need to be examined to look for savings opportunities. For example, can you reduce your utility bill and lower your carbon footprint at the same time? Small changes, such as switching lights off when you leave a room can help you to decrease your monthly payments.
Once you have a budget for necessary expenses, you can look at things like entertainment, dining out, and other expenditure on what you enjoy. You may have to make a few sacrifices to ensure that you are not spending more than you earn. Now, you need to stick to this budget with self-discipline.
Plan Your Meals
Groceries take a huge chunk out of your monthly income. Hence, this is one place you need to cut back on if you are to make room for holiday savings and other treats. Stick to a weekly meal plan. When you shop, only buy what is on your list, including healthy school lunches and breakfasts. Get the children involved in planning meals and teach them how to handle money.
Avoid Unplanned Expenditure
Although your child may want the latest game or a new toy that has come out, donât be tempted to get it unless it was part of your budget allocation for the month. Birthday presents for your children and foster children need to be included in your budget planning. Speak to your agency, such as Foster Care Associates if there are special items your foster child needs for school such as a scientific calculator, as they may be able to assist.
Be a Savvy Shopper
When you come across bulk sales of essential items, e.g., nappies, it can be worth stocking up and taking advantage of the savings, which you will recover (plus some) by not having to buy these things for the next few months. Childrenâs clothing sales are another opportunity to save. Buy clothing that is one size bigger so that it lasts longer.
Expenditure on Experiences
Make the most of arts and crafts activities that you can do at home. Going out to have experiences quickly adds up as you have to buy food and drinks at higher process at many venues. Doing things together at home can be just as enjoyable and cheaper. Additionally, it is a fun way to build a closer bond with foster children without overspending. Instead, save this money towards a proper holiday.
Budgeting requires self-discipline initially but soon becomes habit.
