Having a family is one of the most wonderful, magical experiences there is in life, but it’s also unfortunately pretty expensive. Between food costs, paying for everyone’s hobbies, and having enough left over to enjoy days out and other treats, the costs can quickly mount up, and you can find yourself wondering whether you’ll make it out of every month in the black or not. If you’re seeing yourself in that situation, then there are measures you can take to hopefully reduce your expenses and carry your family through any tough times you might experience. Here are 10 tips for saving money as a family!
1. Try taking out loans
It might sound crazy, but one underrated way to save money as a family (provided that you’re not already in trouble, of course) is to take out a loan. Even a £1500 loan can have a surprisingly positive effect on your family finances, assuming that you’re in the position to pay it back. Loans don’t just give you a quick cash injection; they’re also a good way to build up your credit rating, which can stand you in better stead for things like mortgages and vehicle payments later.
2. Build a family budget
Your family won’t know exactly how much it needs to save until you come together as a unit and build a comprehensive budget. Obviously, you shouldn’t expect any young children in the family to help with this process, but if you’ve got university-age kids (especially if they’re working their own jobs), it’s a good idea to involve them. By creating a thorough budget, you’ll have a better idea of your finances and where you can streamline them to maximum effect.
3. Strip back birthdays
It’s tempting to go for the massive birthday blow-out, especially on major milestones, but you can actually save a lot of money by simplifying your birthday celebrations. Rather than having a massive party, why not throw a more intimate soiree for you and your nearest and dearest? Instead of a costly club night, how about the cinema, or bowling? Birthdays don’t have to be expensive to be special; the most important thing is that you celebrate the person, not the day.
4. Ditch the car
Cars are incredibly convenient for family trips, but you might be able to save a lot of money if you get rid of your vehicle. If you’re taking a lot of trips in your car, then you might find it’s more cost-effective than public transport, but if you find you’re mostly visiting places that are reachable by walking or cycling, then why not pick up bikes for the family instead? It’s a sharp initial expense, but it’ll pay for itself when you’re not paying a petrol fee every month.
5. Buy second-hand
When it comes to buying new clothes or electronics for your kids (and yourself, for that matter), you may wish to consider shopping second-hand. Not only does this keep your costs down, as items often lose up to a third of their initial value just by being pre-owned, but it’s also great for the environment. If you’re buying second-hand clothes for your kids, involve them in the process so that they know what kind of clothes they want.
6. Shop own-brand
Just like buying second-hand goods, shopping for own-brand items in supermarkets and other stores can cut back your costs immensely. Instead of going straight for the branded shop, consider buying the supermarket’s own alternative. You’d be amazed by how little you’ll notice the difference; if you’ve ever seen a TV show where a family taste-tests items blind and can’t tell which is the “premium” brand, then you’ll know branding accounts for a lot.
7. Keep social activities low-key
When you’re socialising with friends, you can save a lot of money by simply inviting them over to the house instead of heading out to the pub or to clubs. The same goes for your kids; instead of handing over huge sums of money for activities, why not simply ask them to bring their friends back to your place to chill? Older kids will understand that you’re trying to save a little money, so keeping them in the loop is a good way to get them on side in this regard.
8. Sell your stuff
It’s a known fact that kids’ bedrooms can get pretty cluttered, right? With that in mind, why not sell some of your kids’ old stuff to get some cash back? Talk to your kids and ask if there’s anything they’re not currently using. If they give their consent, you could sell it and give them the profits – that way, you won’t need to hand over money when it’s time for them to go to the cinema, for instance. The same goes for your own stuff, so make sure you’re having regular clearouts!
9. Spend only what you need
Many of us coast through life completely unaware of the subscription costs we’re amassing. Streaming services, music subscriptions, and delivery plans are just some of the expenses we cough up without even realising we’re doing it much of the time. Comb your bank account to find those pesky hidden subscriptions you’re not using any more and make sure you cancel them. Again, be sure to keep the family included in this process, as you might end up cancelling something they’re still using!
10. Install smart appliances
While smart appliances and fixtures might seem like a big initial cost, they could actually help you to save money in the long run. By installing smart bulbs, smart thermostats, and other smart options, you’ll be able to see where you’re spending the most money when it comes to energy and how you could optimise your spending. Ask your kids if they’re happy to have smart bulbs or other appliances in their rooms, and you’ll get to see how much is being spent at any given time!