Most mothers wish that they had more than enough money to never have to think of making a household budget, but a budget is still necessary, no matter the amount of pesos your household is bringing in. There are plenty of ways how you can save money and you may start looking at your family budget.
How to save money from your family budget
According to Nannette Ferreria, Managing Director and Senior Financial Consultant of Money Doctors Inc., and mother of six children, here’s how to pinch those pesos even further:
Plan the expenses before payday comes, rather than the other way around. So when your income comes in, you can allocate the money as planned. These are the expenses that you need to prioritize:
- Food
- Shelter
- Clothing
- Utilities
- School related expenses
- Househelp salaries
- Medical / dental
- Work-related expenses (transport to work, auto amortizations, fuel, toll, parking, meals)
Resist the urge to spend on “lifestyle” expenses. For other expenses that aren’t included in the list above, Ferreria says that you should ask yourself this question before purchasing anything: If I didn’t buy this item or do this lifestyle item, will I die?” If the answer is no, then that expense can be cut off.
Find a more affordable option. Be it food, clothing, gadgets, travel purchases, and the like, there will always be a more affordable piece of clothing, a cheaper hotel, or a gadget that you can purchase when it goes on sale because of the release of the newest model.
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Be smart with your grocery shopping. Lessen the times you need to head to the grocery store. It means less parking fees, gas, effort and time spent. If you can leave the family while you’re in the grocery, please do so, or make a pact with your kids that they’re only allowed to buy one product within a certain price range. And it goes without saying that having a grocery list is absolutely necessary.
Buy cars in January. When new models are released, car dealers usually put older versions, but still brand new models, on sale.
Buy clothes for the family after the New Year. Buying clothes in January or February when stores do their inventory sale will save you hundreds of pesos.
Pack lunches for you and your family. Designate Sunday afternoon as the time when you and your entire family cook meals for the whole week. It might take a little longer to prepare, but it will save you hours and money in the long run.
Teach the value of delayed gratification. Teach your kids to plan for expenses rather than buying on impulse. If and when they see something they like, tell them to sleep on it so that they’ll have time to think about it, or see if they have enough money to buy it themselves. It will teach them to be logical, not emotional spenders.
Other ways to save money
Make budgeting a family affair
Saving money entails more than just having extra money in your savings and checking accounts. It’s also an opportunity for you to impart important lessons on personal finance to your children.
Budgeting as a family is one strategy to support your children’s financial literacy and knowledge development. Discuss your family’s spending, earnings, and savings at least once a month. During the discussion, you can also discuss using debit and credit cards. More importantly, use the meeting to create a family spending budget.
Create a shopping list
Making a shopping list helps you avoid purchasing unnecessary items, which results in cost savings. Keeping track of consumables as you consume them is the easiest method.
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Start meal planning
To ensure that you always have food on hand, meal planning involves selecting what you will eat for all or most of the meals during the week. It assists you in maximizing your purchases, avoiding impulsive fast-food runs, and even eating healthier on a tight budget.
Cut back on subscriptions
Get your family together and talk about the streaming services you use, such Audible, Disney+, Apple Music, Netflix, Spotify, and so on. Is it really required to have a subscription to every streaming service? Can you get by with the free, ad-supported version of Spotify, or do you use it enough to justify the premium version? Should you truly attend a book club every month, or is going to the library sufficient?
Updates by Jobelle Macayan
Nannette Ferreria, Money Crashers
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