Effective Tips For Managing Expenses As A Family

Seem like your family finances are a bit off this year? You’re in good company. Our traditional budgeting methods, such as setting up automatic bill payments and monthly savings targets, making bulk purchases, and avoiding dining out, are no longer as effective.

A recent survey by CNET Money discovered that 93 percent of American adults are worried about inflation, with almost three in four respondents delaying their long-term financial plans or major purchases due to the rising inflation and cost of goods. And it’s not just groceries. It appears that the prices of everything, from our children’s extracurricular activities to travel, have gone up. Here’s how our family is managing and adapting our budget during times of inflation.

Monitoring our expenditures

How you track it doesn’t matter. Monitoring your spending almost always leads to two outcomes—identifying where all your money is going and understanding where you may be overspending.

There are numerous excellent apps that can help you manage your spending, such as Mint and YNAB. I also find RocketMoney useful for monitoring my bills and subscriptions—a surprisingly large portion of our budget.

Shopping for groceries biweekly

As a mother of two boys with a husband who adores food, our grocery bill has become exorbitant. Between our weekly grocery deliveries, meal subscriptions, and occasional trips for forgotten items, we were spending nearly $400 a week on food.

To cut down on our grocery expenses, I switched to biweekly grocery deliveries, which compels us to consume what’s leftover in the fridge, even if it’s not necessarily a favorite item. This switch has reduced impulsive and duplicate purchases while also decreasing food wastage, something that bothers me. I also calculated that our meal delivery service was costing us $10 per person per meal, so that will be the next expense to cut.

Scaling back on extracurricular activities

I’ve always advocated for restricting my kids to one sport or activity per season, and this autumn, I held firm. Since my youngest wasn’t keen on a particular sport or activity this fall, we decided to skip it altogether.

In our area, popular sports like soccer or t-ball cost around $200 per season, not including equipment, attire, and transportation to and from the fields. Additionally, there’s the opportunity cost of sacrificing Saturdays from now until mid-November.

By limiting sports activities, we’ve saved hundreds this fall, and it’s a money-saving and sanity-preserving tactic I plan to continue even as our financial situation improves.

Foregoing a significant trip this year

For me, summertime equals travel. However, factoring in hotel stays, airfare, dog care during our absence, and vacation expenses, it just wasn’t feasible within this year’s budget. Instead, we opted for a week-long visit to my parents, who reside in a different state.

We turned the trip into a road adventure, utilizing hotel points for accommodations on both legs of the journey, which made it feel like a real holiday. We also took our dog along, which not only saved money but was also quite enjoyable (mostly).

Discovering cost-free family activities

I can breeze through an entire book in a weekend; the sensation of reading a new hardcover release, flipping through its pristine pages with anticipation, is something I cherish. Nowadays, instead of purchasing new books, I rely on free resources like Libby, Amazon Kindle Unlimited, and yes, I even make regular visits to my local library.

This summer, I’ve adopted a similar approach for my kids. I alternate between pricier outings and cost-free entertainment such as playground visits, community pool excursions, and bike rides. If I foresee multiple visits to a location, I invest in an annual pass. While it involves a higher upfront cost, it usually results in long-term savings. And don’t underestimate the joy of a garden hose in your backyard.