As well as family money saving tips, it’s also necessary to look at your finances and to establish your savings. Without doing this, the money saving tips provided in this blog will help you to find solutions to save money, but won’t help you to look at the causes. Whether you are very strong financially, or whether you are just learning the financial ropes, the tips below will help you stay on top of your finances and will keep you in control of your money.
- Tip 1: Set up a baby account: As soon as your little one is born set up a savings account. Each week put a small amount of money in and watch it grow over time.
- Tip 2: Look at tax reducing accounts for dependents: Many employers offer salary sacrifices into tax deductible accounts. Look into this and see if you can do it. The benefit is a saving in tax.
- Tip 3: Set up a 529 account: Start putting money into your kids collage education as soon as they are born. A 529 account is a tax free way to do it.
- Tip 4: Stock up when you still have two incomes: If you are proactive and buy a lot of your baby needs while they are on special when you still have two incomes, you will make things a lot easier when you move down to one income.
- Tip 5: Pretend you are living on one income: A few months before you stop work (eg when you are having a baby), pretend you are living on one income. This will make the transition to one income a lot easier.
- Tip 6: Write up a budget for the baby: Consider all of the costs you are going to incur, and how much money you will be living off. After you do this develop up a quick budget so that you know where you stand. This will help you in managing your money and ensuring that you don’t spend to much money. Our golden rule is to add thirty percent to what you think you will spend. This way you will have a buffer.
- Tip 7: Enjoy and splurge occasionally: It is a fantastic time of your life so enjoy it and occasionally splurge on things. This well help keep your sanity and you will enjoy this wonderful time!
- Tip 8: Set up accounts for your children: Setting up an account, and regularly putting in money is a great way to teach your child about money. If they want a big item, you can also show them to save part of there pocket money as well.
- Tip 9: Show them how to make money: Whether its collecting cans or delivering a few pamphlets, nothing teaches a child the value of money more than working for it. Probably not a good idea to take them to the docks to watch Donnie the Ace get whacked for grassing on Vince – if you’re into this line of work.
- Tip 10: Make your kids work for their pocket money: As with the tip above, making your kids undertake tasks for their pocket money will teach them the value of money. Paper run, selling lemonade, down the mines! It doesn’t matter as long as they’re learning.
- Tip 11: Reduce your debt before you have a baby: When pregnant one of your main goals (besides looking after yourself of course!) should be to reduce debt. Some couples spend (pardon the pun!) this time buying more products on credit; don’t be one of these. The best thing you can do is reduce all of the debts that you have, so you will be better prepared for when the baby is born. They’re expensive so get ready.
- Tip 12: Decide if you will be a one income or two income family: If you decide this well in advance you will save yourself a lot of headaches in the future, and will be easily able to establish your household budget. Two incomes is great, but weigh it up with the lost time spent with the kids, not being there when they get home from school wanting to tell you about their day etc etc. We’re not biased though.