Top Money-Saving Tips for Families*

The last few years have been full of financial setbacks for families, couples, and individuals who’ve had to deal with job loss, furlough, and the general expense of the increasing cost of living. This may have had you and your family scurrying for ways to cut costs.

And while many people are struggling with day-to-day costs, we are still all in the mindset of planning for the future. So whether you want to save for an emergency fund, for your child’s school, or for retirement, adopting more thrifty habits will help you find ways to reduce your most significant expenses.

Here are 5 tips for families who want to stay on top of their finances and budget.

1. Make a family budget and stick to it 

It’s important to teach the kids early what budgeting and saving are. Then, every month or so, gather the family together to talk about expenses and savings and explain how budgeting a family works.

Set up a budget plan together with your family for everyone in the house, and decide that everyone needs to stay on track with the budget. This can teach children to define their expenses and set better savings goals for themselves.

2.  Adopt the 50-30-20 model

Following on from making a budget, you have to find a healthy way to stick at it, which is why I recommend the 50-30-20 model. To make budgeting easier, your monthly income is divided into 3. 50% goes towards essential needs – this is housing costs including bills, food, transport to and from work, minimum payments on debts etc. 30% goes towards wants – now this is a little trickier as it includes things you can live without, but you don’t want to. For example, subscriptions, takeaways, memberships, gifts, or any extra shopping. Finally, 20% goes towards savings or debts. If you have debts to pay off, 20% should go towards making overpayments to clear it faster. And if you don’t, you can pop that extra 20% into savings.

The 50-30-20 is an excellent model in a simple format to help you reach your money goals. It’s also an excellent one to pass onto your children and one they should definitely be teaching in school!

3. Cancel unused services and subscriptions 

With the number of streaming service choices we have nowadays, it’s easy to get caught up in the hype and purchase them all.

As this is a “want” when it comes to the 50-30-20 model, it’s worth taking a close look at what you can do witout.

4. Make a shopping list for groceries and start meal planning

The more organised you are, the more money you may save when it comes to food shopping. Prepare a shopping list, and gather all your coupons.

Keep your budget in mind, so it’ll prevent you from going over the budget when shopping.

Another tip is to start meal planning. Meal planning entails deciding what you’ll eat for all or most of your meals for the week, so you don’t find yourself with an empty fridge and desire to call food delivery. This way, you can maximise your purchases at the store (to waste less and spend less) and eat healthier on a budget.

5. Utilise reusable goods 

Saving money and also saving the planet. What more is there to say?

The moment you start cutting back on single-use plastic or throw-away products, you’ll notice a huge difference in your finances. Plus, it’ll feel way better when knowing you’re helping the planet along the way.

Start with the simplest options, such as switching to washable grocery bags, and you can slowly go from there.