Trying to give, save, invest, and make the most of your time with your kids can feel as overwhelming as it sounds. How can one possibly save money while raising kids? It seems like there are never-ending expenses: diapers, clothes, activities, school fees, food, entertainment, etc. These are just the day-to-day expenses and don’t even include things like saving for college. The USDA estimates that raising a child in 2022 will cost an average of $292,000. That’s a lot of dough! But not to worry! My husband and I have found many ways to continue to give, save, and invest all while making the most of these precious years with our kids!
Set Your Priorities
Your kids are products of the environment they are raised in. This means if every time you go shopping, they get a new outfit or toy, this becomes an expectation. What you value, they will value as well. For my husband and I, giving money to our church and local charities is a priority. Saving for retirement and financial independence is a value. Stewarding our resources appropriately, including our time, is important to our family. We talk about this with our kids often. It’s not that we can’t afford something, it just may not be a priority for our family. Could we save up for and afford to go to Disney this year? Yes! Is that a current priority for our family? Not at this moment. Have a discussion and nail down your priorities and then stick to them. Also, talk about them with your kids. Culture strives to influence our priorities but if you’re clear on yours, it will help you not bow to the pressure of the world.
Your Kids Don’t Need Everything!
Let me say that again. Your kids don’t need everything! And they certainly don’t need everything new! Kids grow out of clothes and move on from toys MUCH faster than adults. While it might be worth it for you to get a nice, brand name winter coat that will last you 10+ years, kids don’t need this kind of an investment while they’re still growing!
I can’t tell you how many times my kids have been opening birthday presents and by the time they get to the last present, they’re already over the first one! Don’t succumb to the pressure that society puts on you that you need to buy things for your children. Kids need shelter, food and water, clothing, medical care, education, and then a whole lot of intentional parenting. Because kids don’t actually need a lot of stuff, you can save yourself a lot of money if you eliminate or reduce some of these expenses.
Saving Money on the Basics
Food
Kids need nutrient-dense food options. The last year or so, food prices have skyrocketed. Even when things feel out of control or overwhelming, there are still some easy ways to save in this area. First, shop store brands. Shop at places like Costco, Sam’s Club, or Walmart for bigger families. Look at the cost per unit rather than the overall cost of the item as this can save you money if you know you’ll use up whatever you are planning to buy anyway. Limit eating out to special or rare occasions only.
Meal plan using your grocery ads. If grapes, strawberries, and broccoli are on sale this week, those will be some of our fruit and vegetable options. When I find a great deal on chicken or ground turkey/beef, I’ll stock up and freeze so that when things aren’t on sale, I have meat readily available to thaw and throw in a recipe. Always keep rice or whole grain pasta on hand in a pinch so you can create an easy, healthy dinner quickly and avoid running through McDonald’s. Avoid pre-packaged snacks whenever possible. The cost per unit on these are much higher than a larger box or bag of the same thing. Make your own yogurt, granola, muffins, etc. to save and decrease processed junk. Grow your own fruit and vegetables in the summer. Gardening is both a free activity and yields delicious, fresh produce. Finally, keep it simple! We tend to stick most meals to a fruit, a veggie, a side, and a meat.
*Bonus tip: leave fruit and veggies out on the counter for your kids to “sneak” eat without you looking. Anytime I leave bell peppers, grapes, tomatoes, etc. out where my kids can reach them, they will reach for these first when they walk into the kitchen!
Child Care
This can be a major expense for a lot of families. For my husband and me, we currently don’t have expenses in this category as I stay home with our kids. However, prior to staying home with our kids, this was a part of our budget. If you regularly pay child care expenses, see if your employer offers a dependent care FSA so you can at least pay for your child care with pre-tax dollars. If not, make sure you do your research, look into different options (daycare facilities, in home options, nannies, au pairs, etc.) to find the best option for you based on your level of care needed and the cost you feel is appropriate. The most important thing is that you feel comfortable and secure with the situation your child is in. This might be worth paying a little more each month if necessary.
Clothing and Toys
Clothing and toys are one of our most minimal spend categories. The only time our kids get toys from us are if it’s a holiday, when they get potty trained (yay!), or if we find things for free. We have a host of relatives who enjoy buying our kids gifts and because of this, we already have an excess in this area. Multiply times four and, well, I think you understand! If your child is asking for a toy or gadget, invite them to save their own money, ask relatives for an upcoming holiday (if said relative is asking what the child would like of course), or just encourage them to be resourceful with what they already have. Our kids often enjoy playing with big empty boxes and making music with an old spice jar filled with rice. It doesn’t have to be elaborate or expensive to bring joy and imagination to your child.
We get almost all of our kids’ clothes second-hand. With how fast kids grow out of clothing, you can find great, used clothing at garage sales and thrift stores. We also get a decent amount of our clothing and shoes second-hand from our local Buy Nothing community. If there’s a special occasion or we need matching clothing, sometimes I’ll look for great deals and splurge. Grandparents and others also enjoy buying clothing for our kids on occasion so they have more than they could ever want when it comes to clothing. It also helps that we have two summer-birthday girls and two winter-birthday boys who can hand-down to the next.
Activities
Activities for kids can be a major expense for families with kids. It’s easy to get our kids involved in everything under the sun. While having our kids involved in activities is great for self-esteem, peer engagement, and learning valuable life skills, it doesn’t have it break the bank.
First, look for free activities in your area. At one of the children’s museums nearby, they have free admission 4-5 times a year as well as discounted admission every Thursday evening. Choose parks, play dates with friends, a local library visit, a movie night in, or a bike ride instead of an expensive excursion. If there is something you enjoy doing, see if a membership would save you money and give you more “free” activities. One of my family members gets us a zoo pass each Christmas which we use all spring, summer, and fall. For a family our size, a membership pays for itself in just 2-3 visits. We usually end up going once a week from May-October, so this is a wonderful gift.
If your kids want to participate in a sport, look around and see if there are park district leagues or nearby smaller towns that are cheaper. In our area, you can pay anywhere from $40-$180 for your child to play baseball in the spring. The seasons are the same, the options are similar, but the cost varies greatly. Shop around and see if you can find something similar for cheaper, especially if your kids are young and are just gaining exposure.
Finally, invest in making your space a great space to be. If your kids are young, invest in a great swing set so they will run outside instead of asking to go elsewhere. Check Facebook Marketplace or Craigslist to see if you can find a used one for much cheaper than retail. If you have older kids, do you have a TV and gaming system or movie setup for them and their friends to be entertained?
Make Some Money Selling Old Stuff
Beyond just saving money, you can sell things your kids no longer play with or wear. This can afford you extra cash to allow you to buy newer items. If I have a nice outfit or toy my kid has outgrown, I have used Facebook Marketplace to sell it!
Final Thoughts
I tried to do an accurate calculation of how much we’re spending because of our children. First off, I would do it all over again, even if the numbers from earlier were accurate. But even if we add in college savings, medical expenses, the cost of feeding, clothing, and caring for our children, activities, and anything else I could possibly think of that we spend money on for our kids, my total for all 4 of kids for a year was roughly $17,000. We live in a lower cost of living area and our kids are 5, 4, 2, and 1 (so the activity budget isn’t too out of control). This just all goes to show you, it’s relative. And it is possible to spend MUCH LESS than the national average. I love my kids and they enrich my life greatly! It is possible to save, invest, give, and live your best life, with your kids by your side!
Want more tips on budgeting for a family? Read my article on Budgeting. If you’d like a free downloadable budget template, sign up for my email list below!
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