15 budgeting tips for young families

Never has there been a better time to put money saving tips into practice for your family. From spending less, to saving more, and even making some money on the side, here’s 25 of the best money tactics to use now.

Identify essential & non-essential costs

1. Differentiate between essential and non-essential costs:

Look closely at your spending habits and see where to cut back on non-essential expenses. This could mean eating out less, cancelling unused subscriptions or gym memberships or shopping around for better deals on your weekly groceries.

2. Set up a family budget

Aside from helping you manage your money, a family budget is a great tool to see where your money is going and where you can save money. When all family members see how much money there is to spend each month, they start to understand how budgeting, income and expenses work. Creating a family budget also teaches them the importance of managing money wisely.

3. Cancel monthly and yearly subscriptions

The average Brit pays out £500 a year on subscription services and is currently signed up for four separate monthly services, many of which they have forgotten. Check your bills, PayPal account and iPhone for monthly and yearly subscriptions to apps, digital newspapers and more that you no longer use and cancel them.

4. Be selective about your streaming platforms

Netflix, Amazon Prime, Disney Plus, Apple+, Sky, the list of streaming platforms are endless, but how many do you watch? Cancel the ones you don’t use, and check how much you spend. If you love a channel, look for bundle services like NOW TV, which also includes Sky channels, or Sky Q, which has Netflix included.

5. Watch out for misc spending

Be sure to warn your kids that it’s not just the big ticket items that eat away at your finances. Beware of small miscellaneous daily spending like a daily coffee or bubble tea here and there, a Deliveroo order, the odd snack on the go and even a quick treat. It all adds up. 

Shop around to cut the cost of your bills

6. Use money-saving vouchers and discounts

You can get a discount code or voucher for any place you shop, from supermarkets to mobile phone companies, holiday firms, and restaurants, so you’d be wise to use one. Voucher codes are widely available online, free and offer as much as 5 – 20% off anything you buy.

7. Utilise comparison sites

Comparison sites are a great way to save money. They compare prices from various merchants to ensure you get the best deal and save money. These sites cover everything from insurance, mortgages, and loans to utilities, broadband, mobile phones, and travel.

8. Don’t be loyal to one supermarket or brand

Loyalty no longer pays on the cost of brands and supermarkets. New research shows over half (56%) of Brits have switched from a brand they once used, according to Emarsys Customer Loyalty Index, with cost coming top of the reasons for shoppers switching brands.

9. Look for bundle deals

A bundle deal is a deal that’s made up of 2 or more services. So broadband, phone and TV, gas, electricity, landline, and extra services. They are designed to lock you into a deal but at the same time offer significant savings if you ‘bundle’ the services together.

10. Get a smart meter

To save money on gas and electricity, and water, you have to be proactive. The best way to do this is to use a digital display that you’ll be offered with a smart meter. This helps you keep track of how much energy you’re using and when to reduce your usage and pay less.

Encourage your kids to budget & save their money

11. Give kids pocket money

Regular pocket money is a great way to teach kids about financial responsibility, as when kids are given pocket money, they are responsible for managing it. This means deciding how to spend or save it and how to delay gratification to get what they want.

12. Teach your child how to budget

Explain to kids that a budget is a plan for how you will spend your money and stops you from spending more money than you have. Help them create a weekly budget with a family-friendly budgeting app.

13. Explain how to track their spending

To save money, help your child track their spending. There are many ways to track spending. You can use a budgeting app, a spreadsheet, or a notebook. Help your child track their income and expenses to see where their money goes.

14. Talk about needs versus wants

Talk to kids about needs versus wants to help them understand how to save money. “There are lots of simple ways to do this”, says Louise Hill, Co-founder and CEO of GoHenry. “When you take kids to the shops. Use shopping for groceries as an opportunity to talk about wants and needs. So we need the bread and the chicken, but we don’t need – we just want – the chocolate cake and ice cream, for example.”

15. Start your child saving

Remember to show kids the power of saving. What does your child want to save for? A new toy? A bike? A trip to the zoo? Once your child knows, help them to start saving, so they can reach their goal.

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