5 money hacks that every parent should know

While your love for your child may be infinite, unfortunately, your finances may not extend quite this far, which is why it’s essential that you have a few money hacks up your sleeve to better manage your family budget.

In 2016, the Suncorp Bank Cost of Kids report found that on average, a parent will spend almost $300,000 on raising their child to the age of 17. This figure can seem scary given the fact that the cost of living is increasing much faster than our incomes are, which can make it difficult for us to stay on top of our finances.

To help you stay on track, here are some practical money hacks that can help you stay in control, amidst the joy and expense of having kids.

Shop around for the best providers

Many households are paying too much for their providers and don’t realise that there are better deals on offer. To avoid paying the “lazy tax”, it’s important to review your current plans and do your research to see if there are other providers who can better suit your family’s needs.

Electricity, water, gas, insurance, phone and Internet providers can be easily switched to secure the best deal and maximise your savings. Switching to a provider with fewer fees or a more competitive interest rate could save you hundreds or thousands of dollars per year.

Focus on credit card and mortgage debt

It’s easy for parents to pay for some expenses with their credit card to be paid off later. However, this debt can build up quickly with the constant needs and wants of children (think school fees, childcare, groceries, etc). This makes shopping around for the ideal credit card very important. A credit card with minimal frills, a low interest rate and a $0 applicatication fee is ideal, but really it will depend on your unique personal situation.

Staying on top of home loan repayments can also help support your long term financial goals. Knowing exactly how much you need to regularly repay and when you will have completely paid off your loan can be financially motivating.

For both your credit card and your mortgage, don’t be afraid to make more than the minimum repayment as this will help you fast-track your debt.

Shrink your grocery bill

Supermarket spending is one of the biggest expenses for families. To cut costs at the checkout, parents should always be equipped with a shopping list. This list should be enough to last your family the entire week and should be written based on meal plans. If you see some good specials at the supermarket, alter your meals to incorporate those savings. Also have a buffer so that if something is on sale, for example, tissues, you can buy in bulk and not need to purchase them again for the next few weeks.

Leaving the kids at home while you do your weekly shop is also helpful for avoiding impulse purchases that may be made to stop your kids whining in your ear. Also, don’t be afraid to stray from the mainstream supermarkets. Great quality products and savings can also be found in discount supermarkets such as Aldi and IGA.

Establish an emergency fund

Setting up a rainy day fund to be used for any unexpected expenses is a great way to minimise your credit card spending and avoid dipping into your savings. Transferring a small amount of your income each week into an account that earns high interest creates a financial buffer for parents to rely on in the event of an emergency.

Family holidays

Going on family holidays is a memorable and enjoyable part of childhood and parenthood. To organise a family getaway without breaking the bank, plan ahead and budget for the trip. It’s also important to do your research to secure the best deals on flights, accommodation and activities.

Travelling in the off-peak season is a great way to save money. Selecting a destination where your kids will be entertained at a minimal expense is also important. Cities popular for tourists or caravan parks where there will be other children and free facilities for them to use is a great way to keep them busy without the constant demand for money.

By following these money hacks you can enjoy the ups and downs of parenting, while keeping your finances stable and secure.

Article from: Bessie Hassan. As the Money Expert for finder.com.au – the site that compares virtually everything – Bessie is an experienced commentator who often appears on national radio, TV, and throughout online publications sharing her best money-saving tips and property advice. Bessie is passionate about empowering Australians to make better decisions, whatever it is they’re looking for.