Are you in need of a little assistance with budgeting tips for families? Then, this is for you. Family costs can mount quickly; if you have children and you have a family, you’ll need an average of $140- $170 per week for your child. That is why we have gathered these fantastic budgeting tips for families.
As your family members grow older, you could be a bigger financial burden in your household. While we’re not suggesting that you’d do better living in a home on your own, regardless of whether and/or not, you’ll find that your spending habits are often a challenge especially if you’re a part of a large family.
To ease any stress you may feel, we’ve put together some ideas about how families can budget without having to reduce every pleasure of life (although some discipline can be a great thing!).
Table of Contents
4 Budgeting Tips for Families
· Create a budget for the family
You think it’s boring. True, most people don’t take the time to create a budget for the family. It’s often too daunting, difficult, or insignificant. However, in the end, it will be worth it because you may be able to reduce expenses and save money in the process.
According to ASIC2, the average Australian household will spend $20 on bakery items and food items $44 on restaurants, and $29 on personal care items each week. The first step in establishing a family budget is determining where your money will go.
In other words, estimate your income and add the expenses. This will involve rummaging through bank statements or bills as well as statements from your credit cards. What a meticulous auditor! You’ll have to take into consideration these budgeting tips for families:
- Earnings from work that is part-time, full-time, or temporary work
- You can also claim your pension, in the event that you’ve got one.
- Any benefits from the government you may be eligible for
- Payments for child support when appropriate
- Investments and money
- Other income sources.
The exciting part of the budgeting tips for families; is to spend about 60% of after-tax household income on basic needs such as food, shelter, and expenses. The rest of the 40% should be split between your regular expenses and expenses for activities you enjoy. You can find ballpark numbers to further break down these categories.
For instance, let’s say you’d like to put 30 percent of your earnings on the cost of housing as well as 10% on debts. You may have to spend 5 to 10% more on transportation to pay for a train ticket per month or the cost of gasoline. This is only an estimate; however, you’ll need to do your own calculations to determine the best solution for your needs.
· Set both Long and Short-Term Financial Objectives
If you’re thinking about house relocation, adding more children, or purchasing a car it’s important to keep your goals for the future, both short and long-term goals in your mind. If you are able to start planning your budget today, you will are coming one step closer to achieving your goals sooner.
A short-term goal might be a weekend day trip with the whole family. A good example of a long-term goal would be a trip abroad during school vacations. Utilizing a bank account that is a source of interest, such as the Everyday Options Account (Savings), is an excellent way to get started planning your budget for your family and tracking your finances.
Prepare ahead for school resumption
If your school holidays are nearing or ending, don’t get stressed. If you’re planning trips to the store for uniforms and stationery stores, or you are juggling school activities and you’re trying to find the funds to cover everything isn’t as stress-inducing.
Be careful when buying and put aside the money you’ll need to purchase in the beginning. Before buying school uniforms, examine their uniforms and find out what needs to be replaced. Keep your eyes peeled for shoe sales; you might be amazed at how much you could save!
If you’re worried about the upcoming school trips and camps you should check with your school to find out the cost or find out what it cost last year, so that you can prepare and plan for the coming year.
Gather the family around budgeting
Budgeting tips for families seem like a simple task, it’s not, but it could be as simple as you imagine. The most important thing to consider when budgeting is whether to fund a trip or to pay for the costs of school. This decision is to involve everyone involved. Got an upcoming vacation? Engage in a discussion, not just about where you’d like to go, but what you’ll be doing when you get there. Take a look at the activities and the value they will bring to the whole family.
It’s exciting to come up with inventive ways to reduce your budget However, it’s best to stick to the basic things that you can do together as a family. It can be as easy as changing the way you shop or planning a “staycation for one year to save money for a larger holiday next year. If your monthly shopping costs are increasing make an actual list of items you’ll require and then choose brands that are less expensive.
There is a myriad of methods to cut costs together as a family. Whether it’s cutting costs in your day-to-day life or getting everyone involved in the budget to save money unexpectedly using smart budgeting techniques.
Conclusion – Budgeting tips for families
Family costs can mount quickly; if you have children and you have a family, to ease any stress you may feel, we’ve put together some ideas about budgeting tips for families without having to reduce every pleasure of life.