7 Effective Tips to Raise Kids with Frugal Living

This is a guest post. 

Raising kids is hard enough as it is. The expenses alone are enough to make your head spin. Luckily, you don’t necessarily need piles of money to raise a healthy and happy family. You just have to be smart about the way you handle your household funds. Here’s our list of seven tips for raising kids with frugal living:

Don’t spoil your kids with material things.

Kids are pretty resilient. They can get by very well with just a few toys and some good books. Do not resort to buying kids excessive gifts or expensive toys. Save those for special occasions.

One way to avoid spoiling your child is not to give in every time they ask for something. It’s easy to cave in when we want our kids to be happy, but it’s crucial to start setting strict limits early on. This doesn’t mean you should deprive your child of everything they want. When they want something, like a new toy, encourage them to save up for it and earn the privilege of buying that item themselves.

Teach your kids about being a good steward of their own finances.

It’s a good idea to teach your kids the value of hard work and frugality at an early age. You can help them learn how to manage their allowances, set financial goals, and how to get the most out of every dollar they have. Raise kids who understand the importance of being prudent with their resources.

Set up weekly allowances and help them prepare a budget to demonstrate how financial responsibilities affect long-term goals. An allowance can teach your child about the importance of becoming a financially responsible individual.

Also, remember that the best way for them to understand money is by letting them earn it themselves. It’s okay if you pay your kids a bit for small tasks around the house, like taking out the trash, washing dishes, and vacuuming. If they’re bigger, allow them to take on summer jobs or do yard work in the neighborhood. Encouraging them to save up for big items that they want will help set good habits early on.

Prioritize your needs rather than wants.

Don’t hesitate to give up some of your wants to maintain your family budget. Sometimes you have to be willing to forgo some of your desires, even if it’s only temporary, to focus on what matters most.

It’s good to afford some luxuries occasionally, but you should try to avoid splurging all the time. Having a family and maintaining your home is expensive enough already. Focus on the essentials first, and save money for special occasions like birthdays and vacations.

Take your kids with you when you go grocery shopping.

Saving on groceries is one of the best ways to cut down on your finances. You can watch out for store weekly ads and seasonal deals to stretch your dollar even further.

One great way to help encourage frugal shopping habits is by showing your child what difference budgeting can make. Take your kids grocery shopping with you so they can see how you compare prices and choose the best quality items for less money.

Kids are pretty observant. By taking them with you, you’re showing them the value of every dollar you spend. It doesn’t hurt for them to see where your money goes and why it’s important for you to make good decisions when spending that hard-earned cash.

Limit the use of electronics.

Kids are naturally curious, and that often comes with interest in technology. There’s nothing wrong with letting them play some of their games on the computer or watching a favorite show, but it’s important to limit how much time they spend on these things.

It may not seem like much at first, but when you’re paying for every minute used in electronic devices and internet broadband, those short minutes add up quickly. Limiting electronics also means cheaper electricity bills.

Using second-hand stuff does not hurt.

It is okay for your kids to have second-hand clothing and items. They will save you a lot of money over time. Just be careful with the quality of the things you get at second-hand or thrift shops, like toys, electronics, and sporting goods. If something is broken, don’t buy it. Ensure you are buying something safe that will last long.

Set yourself as an example for your kids.

Kids learn by watching what adults do. If you want to teach your kids good money habits, you’ll need to lead by example. They must see you with a healthy outlook regarding the family’s finances.

Don’t overextend yourself or spend on extravagances if you can’t afford them. Doing this will only make your children feel entitled to everything they want, which could result in bad financial habits down the road. Instead, show them that if you want something in life, you need to work for it.

 

Teaching kids how to be frugal by shopping smart, getting good deals, saving, and being resourceful with their spending can help you lay a strong foundation for handling their finances in the future. When things like allowances, chores, and limits are appropriately handled now, there won’t be an issue later on when it comes time for college funds or buying their first car.