Most people don’t give the question of how to find the best way to save money for kids much thought until they start having them. By the time they do, they’ve already been on a shopping spree and stocked up their kids’ closets with brand-new toys that cost a fortune.
As a parent, you want what’s best for your children. And in many ways, that means providing them with a stable home and all the material comforts they might need. The world we live in is meant to be a much more consumer-driven one. Everywhere you look, there’s an advertisement for some new product you should spend your money on. Nowadays, it’s more important than ever for parents to teach their kids how to handle their money.
But one area many parents forget is their approach to saving money for their kids’ future. It’s easy to get caught up in buying toys and clothes for the kids when there are so many other things to think about in life. Saving money starts with habits. Different ones can come into play when teaching kids about money and saving for their future. But these seven thrifty parenting habits will help you boost savings and manage money wisely for the family treasury.
1.They use creative ways to teach kids about saving money.
We all want our children to develop sensible, good money habits that will last their lifetimes. It is one of the significant parenting challenges. It’s not enough to tell your children how to save money. It would help if you showed them how to make it fun and engaging. That means finding the best way to save money for kids that will teach them through your example.
Thrifty parents do not just show their kids how to do it. They live their lessons and practice what they preach. They use imagination to create lessons that will stay with kids forever. Here are some ideas:
- Use an allowance system where your kids are rewarded for doing certain chores around the house. You can make charts on paper or use technology such as the BusyKid chores app, which lets parents set up chore lists for children that they can earn coins for every time they complete a task successfully. Through this app, you can teach kids responsibility and basic financial skills such as Saving, Spending, and Sharing!
- Teach your real-life child examples of how much time they spent on something versus what they get out of it as benefits or enjoyment—for instance, paying for the game that they get enough of instead of experiencing the world outside their room.
- Use real-world situations to explain how money works. For example, if you’re going to a store, ensure your child understands how much money is spent on each item before buying it! Make a comparison shopping of different things.
- Teach them that some things in life are not as essential and they can go without. Instead, point out the importance of being a part of the family and participating in joint activities.
2. They live within their means.
Living within your means helps you save money, which you can do by sticking to a budget. The best way to save money for kids is to follow a budget. You can set it up in Excel and plan out all of your expenses for the next three months. Then, divide each month into categories (rent/mortgage, utilities, etc.). After that, add the costs for each category and write them down on paper or type them into the spreadsheet.
When it comes time for spending decisions, ask yourself if you need whatever you want to buy. If not, then do not buy it! As a good rule, you shouldn’t spend more than 4% on clothes and 15% on food. The truth is thrifty parents always find a way to spend only what they have. For example, they never use credit cards; if they do, they weigh the pros and cons before swiping them.
Being thrifty includes finding the best way to give your family everything and yet pay less for it. It may seem impossible at first, but once you start living like this, it will become second nature.
3. They know the best time to shop.
If you want to save money, timing is everything. For example, thrifty parents never buy things during the holidays. Instead, they wait for the sale after it. They avoid making impulse purchases during these times of the year and wait until after the holiday sales begin so that you can take advantage of discounts. Including the days when there are discounts. Also, avoiding temptations can help you save more than you imagined!
4. They know how to shop smart.
There are so many factors that influence the price of an item. One of them is the brand name, and another factor is quality. If you buy cheap and low-quality items, it will be a waste of money in the long run because you’ll have to replace them with better quality ones sooner or later.
If you want to find the best way to save money for kids, here’s a thought: thrifty parents find items that have the best balance between quality and price. You can do this by comparing different brands or models, reading reviews online, and so on. Brand names aren’t always a better choice than you would expect. However, if you buy an off-brand or generic, you can often find nearly the same product for a lower price—for instance, food in the supermarket, pharmaceuticals, and clothing.
In addition, prepare before shopping, make a list and stick to it. That way, you avoid overspending on the things you don’t need.
5. They spend on experiences rather than things.
Spending on experiences rather than things can be a budget-friendly option for parents. However, sharing these experiences with your kids is essential and creating memories that will last a lifetime. So if you’re planning an outing with your family but wonder if it’s worth the money, consider making some of these things part of their activities:
- Go camping over spring break! Packing up your tent and going somewhere nearby with incredible natural beauty—even just a state park or hike through the woods is better than being inside all day long. This can help teach children about nature and wildlife while giving them plenty of opportunities for outdoor playtime.
- Make cupcakes together! Young kids love helping in the kitchen, especially baking treats like cupcakes or cookies. Letting them pour ingredients into bowls makes this activity even more exciting! You could also look online for creative recipes your kids can participate in.
- Build a fortress! Adults forget the thrill of making fortresses from pillows, blankets, and cardboard boxes. It’s not about the looks but the parents investing themselves into a child’s play.
- Invent a play with stuffed animals. Kids love to pretend play. Let them write a short play with a script. Go on a scavenger hunt around the house and gather the props, whether it’s stuffed toys, clothes, makeup, or making crowns out of paper.
6. They practice DIY
Doing things yourself is a great way to save money because you’re not paying someone else to do it for you! For example, if something needs repairing or building, there’s no need to call the handyman—you can learn how to fix it yourself and save hundreds of dollars that way.
You can also teach your kids how to do things themselves if they’re old enough. For example, teach them how to make gifts for birthdays and holidays instead of buying expensive presents from stores.
Show them how easy it is by making a DIY gift wrap with newspaper or wrapping paper that has been cut into fun shapes. Take them on “field trips” so they can see what goes into growing food (and taste some delicious fruits and vegetables for themselves!). Plant vegetables and help them develop them around the garden, so they can see what they get with little effort.
7. They use savings plans wherever they can
A bank account is the easiest and best way to save money for kids. Automating your savings is a great way to save money because it’s easy. You can set up automatic transfers from your checking account into a savings or investment account with just one phone call or online.
However, this is not the only way to save money for kids. There are numerous saving approaches, some of which can include your kids. It goes from collecting cents from the store to challenging yourself to keep bigger. For instance, you can set a percentage of your monthly income to be a savings fund. Then, each month you do the same. Finally, you choose the rate you are comfortable with and repeat!
Coins left over from the store often drag themselves across tables and, more often than not, finish in a drawer. Engage your kids and save the cash in a jar each time you visit the store or have a change in your pocket. You’d be amazed how much money accumulates over time.
Start teaching your children financial habits early and make it fun!
Kids learn from their parent’s actions; developing good financial habits will set them up for a lifetime of successful money management and help them avoid debt and stress later in life. There are many ways to save money for your children before and during their upbringing!
Being a thrifty parent is not about depriving your children of everything they want. Instead, it’s about finding creative and best ways to save money for kids and give them the same level of happiness while spending less money on them in the long run. Make sure your kids have plenty of time-consuming hobbies like reading books or playing instruments so they don’t feel bored during their free time when they’re not at school or at home with family members. Take advantage of free activities around town, such as parks where there might be a playground nearby where no admission fee is required.
As you can see, many ways to save money for kids don’t involve sacrificing their childhood. Kids don’t need expensive toys or clothes; they need love and attention. And if you can find ways to give them those things without breaking the bank, then everyone wins!