Prevent feeling financially squeezed with these strategies.
In 1976, 40 percent of 40- to 44-year-old women had four or more children, according to the Pew Research Center. Since then, family sizes have been shrinking sharply. And in 2013, a Gallup poll found 65 percent of Americans say the cost of raising children is what leads many couples to limit their family size. “It always breaks my heart when people say they could never afford to have more than one kid,” says Sarah Sabo, a 29-year-old mother of three in Arlington, Virginia. Sabo says her financial success is owed in part to changing expectations, staying smart about purchases and thinking creatively about their budget. With that in mind, here are 15 strategies Sabo and other parents of big families use to save money.
Let go of expectations.
Kerri Engle, a 28-year-old mom based in New Orleans who is expecting her fourth child this summer, says large families can curb costs by abandoning the mentality that they need to accumulate more and better things. “There are so many ways to save money, and the biggest way is to live simpler and waste less,” she says. “We try to live by the philosophy of only use what you need,” she adds. Once families let go of the idea that they need certain things — like a big house or brand-name clothes — raising multiple children can become financially easier.
Own one vehicle.
Living near public transportation or within walking distance of shops, schools and parks can eliminate the need for a second vehicle and reduce transportation costs. For instance, Sabo and her family live in an ideal location that allows her husband to bike to work, enabling them to easily trim transportation expenses.
Purchase a smaller house.
It may seem counterintuitive, but some large families live in smaller houses in order to free up money for other expenses. “We have less [space in our] house than most everyone we know, but we also pay less [for our] mortgage,” says Amanda Elo, a 35-year-old Rochester, Minnesota-based mom. Elo has six children with a seventh child expected in the fall. She and her husband bought a three-bedroom house with 1,900 square feet and converted an office into a fourth bedroom to fit their family comfortably.
Shop at discount grocery stores.
Dawn-Marie Joseph, president of Estate Planning & Preservation in Williamston, Michigan, raised five children and knows groceries are a significant expense for large families. She recommends shopping at a discount store like Aldi or a warehouse club such as Costco or Sam’s Club to keep costs down.
Buy what you can online.
David Geibel, managing director and senior vice president at Univest Wealth Management in King of Prussia, Pennsylvania, advises buying in bulk whenever possible. His family uses the wholesale mobile shopping app Boxed, which offers grocery, paper and pet products among other things. “We like doing it online because you don’t get caught up in the moment,” he says. Online shopping can curb impulse purchases and also relieves the stress of trying to head to the store with a number of kids in tow.
Eat at home.
While groceries can be expensive, eating out can quickly drain your wallet. Even meals at fast-food restaurants can run upwards of $5 per person. To avoid the cost of meals on the go, Geibel makes coffee at home and packs his kids’ school lunches. Meanwhile, Sabo finds ways to treat her family on a budget. “An ice cream sundae party at home is still cheaper than ice cream at Dairy Queen,” she says. Though not all big families eschew meals out, those who do dine at restaurants often have some forethought. “We don’t deprive ourselves of the occasional meal out or fancy coffee, but we budget specifically for it,” Elo says. “Spontaneous purchases are a thing of the past now.”
Prep meals in advance.
To make it easier to eat at home, some large families look for ways to streamline the cooking process. “That’s what my wife and I do,” Geibel says. “We prep all our meals on the weekend.” Other families may use freezer meals. These are meals partially or fully cooked in advance. They are then frozen until they are reheated or assembled on the day they are to be eaten.
Focus on meatless meals.
Meat has traditionally been the centerpiece of family meals, but you can save if you omit it completely. “Instead of eating meatless one or two meals a week, our default is meatless, and we add meat in occasionally,” Elo says. Meals that rely on pasta, beans or eggs can be just as filling for a large family, but significantly less expensive than those that feature meat.
Don’t be afraid to buy secondhand items.
It’s easy to understand why parents are drawn to new, brand-name clothes, but it’s expensive and unnecessary when kids can be perfectly well-dressed in outfits from a secondhand shop. “Hand-me-down clothing and thrift store kids clothes are such an easy way to save money and be green,” Engle says. “We also shop at consignment and thrift stores on sale days to save even more.”
Budget creatively.
Large families can use some budgeting tricks to conserve money throughout the year. Elo’s husband, for instance, gets paid every two weeks, and the household budget is based on two paychecks per month. However, there are typically two months of the year in which a third paycheck comes through. That money isn’t included in the budget and is placed in savings instead of spent on other expenses. Another inventive budgeting idea: Save change throughout the year or earmark the earnings from a garage sale for birthday or holiday gifts.
Sign up for online community groups.
Look for online communities where you might be able to obtain items for free or at a low cost. “For example, we got all of our vegetable garden PVC piping for free from someone on the Nextdoor app [a social network app for neighborhoods] as well as wire shelving for our kids’ closets,” Engle says. Geibel says his family has made a significant amount of money selling unnecessary items in Facebook yard sale groups. However, he urges caution when it comes to using them for purchases since they can lead to impulse buys.
Use the library for entertainment.
The average cost of a movie ticket was nearly $9 in 2017, according to the National Association of Theater Owners. That means big families may have to look for something other than the cinema to fill a free afternoon. “You think of different ways to entertain yourself that don’t cost money,” Joseph says. “The library has so many activities that cost nothing.” Many libraries offer classes, playgroups, game nights and other activities for free. That’s in addition to the movies, music, books and other items that can be borrowed.
Look for low-cost school activities.
Schools offer plenty of low-cost entertainment options for families. Scouts, sports and other extracurricular groups are often available for minimal or no fees. Even at schools with pay-to-play sports teams, the expense may be less than signing on with a traveling team or other sports league. While some sports leagues may require parents to provide all equipment and travel extensively for tournaments, sports programs may supply free uniforms and keep games close to home.
Get to know your neighborhood parks.
While parents might gravitate toward structured activities, kids often don’t require any special equipment or schedule to have a good time. “Parks and playgrounds are awesome free resources for kids to get to play and socialize without paying a ton of money,” Engle says. Trails, river walks and nature centers are also places where children can enjoy themselves outside for free.
Don’t neglect your retirement savings.
Big families need to be strategic about where they put their extra money. “We don’t have the luxury of saving for everything simultaneously, so we prioritize retirement and our own financial future and security over seven college funds,” Elo says. Financial planners agree retirement funds should take precedence. “If you’re destitute at age 65, you’re not doing anyone any favors,” Geibel says. Failing to plan for retirement could mean parents end up being a financial burden on their adult children. If you’re concerned about your children’s ability to go to college, take comfort in knowing community colleges offer affordable degree options, and numerous scholarships, grants and loans are available.
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15 Money-Saving Tips for Big Families originally appeared on usnews.com
