Having savings means having a safety net. You never know when an emergency will happen, after all. Plus, many parents want to give savings to their child so that they have a head start once they become an adult, especially during their university years. Of course, building savings that make an impact isn’t easy, especially when you are on a budget. That doesn’t make it impossible, though. Whatever reason you have for wanting to build savings, here’s how to do it even as a parent on a budget.
Consider Better Life Insurance
Life insurance is essential when you have dependents. It ensures that if you pass, your family has the financial support to cover various costs such as mortgage payments and utility bills. Luckily, you don’t have to drain your bank account each month for good life insurance coverage. To save money, consider opting for fixed term life insurance instead of a permanent policy. It’s often less expensive, and you can always renew it in the future if necessary.
Plan the Weekly Meals
Food is a huge cost for parents, especially if you have multiple little mouths to feed. There are some simple ways to cut down the cost of your weekly food shop, though, and it’s all about being organized. By planning your week’s meals in advance, you ensure you don’t go overboard when shopping for groceries. Even if you save just $10 a week on shop shopping, that can amount to an extra $520 in your savings account each year.
Make the Most of Free Day Trips
Having fun with your kids needn’t involve expensive trips to shopping malls and waterparks. While they are great activities, there are plenty of free trips you can take, like visiting a state park or a free–entry museum. You could even make a trip out of visiting your local library, giving your child better access to books without having to spend a single cent.
Be Strict with Monthly Budgeting
Building a good amount of savings on a budget means having discipline, so make sure you stick rigidly to your monthly personal budget. It’s easier to do this when you are more realistic with your budget – when you allow for treats from time to time. That way, you won’t feel the need to splurge on an expensive food delivery or evening online shopping session.
Set Up Automatic Payments to Your Savings
It is much easier to build savings when the payments are taken out of your bank account automatically. By doing this, you don’t even have to think about it – it will seem like the money is accumulating by itself. Consider setting up a savings account that you cannot access for a certain amount of time, too, as this will ensure you don’t dip in here and there to the point your savings run dry.
Being a parent on a budget is a challenge, but you can still have enough savings on the side as long as you make the right financial choices.