How to save money on family expenses

Figuring out ways to save money while raising a family is no small task. The U.S. Department of Agriculture estimated that a middle‑income, married‑couple family would spend an average of $233,610 to raise a child born in 2015 through age 17. 

Whether you have one child or multiple, there are many ways to stretch your family budget. Check out these tips for how to save money on family expenses:

Figuring out how to save money while raising a family can seem difficult when your grocery bill is sky high. Adding some structure into your family’s eating habits and planning budget-friendly meals are two ways to save money on family expenses.

Jessi Fearon, a financial coach, personal finance blogger and mom of three, says she plans meals and snacks for her family weekly to help her save money. She shops for groceries once a week based on her meal plan, which includes salads and fresh vegetables. She also uses cash for grocery shopping so there’s no temptation to pick up extra items. 

Giving yourself a limit by using cash can keep you from going over budget, as it may be easier to overspend if you’re swiping a debit or credit card instead. Capital One 360 Checking customers can find 70,000+ fee-free ATMs at places you already shop like select Target, Walgreens and CVS stores.

If you’re meal planning weekly, make your shopping list based on what’s on sale. Jennifer McDermott, a consumer advocate with a personal finance comparison website, says your mobile device can be a way to save money on family expenses as you create your meal plan.

It’s natural to be worried about the cost of birthdays, especially the more children you have. But there are many ways to plan a birthday party on a budget. Erin Durkin Voisin, director of financial planning at a wealth advisory firm, says the focus should be on making memories, not spending money.

“My best birthday parties were spent sledding and having friends over, which were both low-cost options for my parents,” Durkin Voisin says. She suggests taking advantage of no-cost or inexpensive activities for kids’ parties, like spending a day at the beach or hosting a sleepover with pizza and cake.

McDermott says if your child’s heart is set on a specific location, you may be able to save by booking during the slow season, on a weeknight or having a combined party with another child and splitting the cost. Keeping the guest list small means there’s less to plan and is another way families can save money.

Another way to reduce family expenses is by shopping smart for children’s clothes and shoes. Shopping secondhand shops, thrift stores and yard sales can help you save money on family expenses. And hosting a clothing swap with another family is a simple way to update your child’s wardrobe while spending less.

You can also check out online marketplaces to buy and sell items nearby, or see what people are selling in your local bargains group on social media. These same outlets are also great for reselling clothes, shoes, toys, books and anything else your kids have outgrown.

Buying used can save money on family expenses if your kids are into sports or other extracurricular activities. Durkin Voisin says e-commerce websites are great places for finding used sporting gear and musical equipment. You could consider leasing a musical instrument if you’re not sure whether your child will stick with it for the long term.

Vacations and entertainment are two big ticket items on the family budget. Fearon says one of the easiest ways to save money on family expenses in these areas is to stop overthinking. Entertainment or travel doesn’t have to be expensive to be fun and memorable.

“We think that if it doesn’t consist of this or that, then our kids won’t have a great family memory,” Fearon says. “But the truth is, kids just want to be kids.” Her family loves weekend camping trips, which don’t cost much and are simple ways to unwind.

Swapping a trip to the movies or a theme park for a bike ride or a museum visit on a free admission day can help you save money. These small changes can make a big difference without requiring a major lifestyle change.

If you don’t have the budget for a pricey vacation, try a cheaper staycation at home. Pitch a tent in the backyard or be a tourist in your hometown. In addition to museums, state parks and historical sites often have low or no admission fees, and you can save even more by packing a lunch instead of eating out.

If you’re thinking about how to save money on family expenses, prep for the holidays early to avoid a shopping frenzy late in the year. Fearon says she sets a spending budget for gifts, which usually ranges from $400 to $600. She keeps a separate savings account for these funds and budgets a set amount of money to add to the account each pay period to reach her savings goal. 360 Performance Savings offers a high rate to help your balance grow.

“That way, when it’s time to buy gifts we know how much we can afford to spend,” she says.” There’s no stress in January from trying to pay back credit card bills.”

Shopping earlier in the year is another way to find deals when you’re looking for ways to save money on family expenses. Holidays like Memorial Day, the Fourth of July and Labor Day are all great times for sales. If you prefer shopping online, some websites have special summer sales that give you the chance to save on gifts.

Remember to set a budget if you’re spending on credit so you don’t go overboard. Limit yourself to what you can afford to pay back in full to avoid interest charges.

Housing is likely to be your largest expense as a family. There are several money-saving tips for families so you can cut costs.

For example, you could add a scheduled thermostat to help lower your heating and cooling costs. Set it to adjust the temperature automatically when you’re away or turn off the air conditioning when it’s not needed. For even bigger potential savings, refinancing your mortgage could lower your monthly payment.

If you’re open to a bigger move, you could think about downsizing to a smaller home or rental—perhaps after one or more children have left for college—as a way to save money on family expenses. You could also consider using your home to make money by renting out a room on a vacation rental website. Just be sure to check your local housing laws before getting started, as many cities and counties have rules around short-term rentals.

Learning how to save money on family expenses isn’t just for parents. You can also get children involved by having regular budget talks. You don’t have to get into all the details about your income or expenses, but you can go over the basics of spending and saving. What children learn about money when they’re younger can come in handy later when they’re living on their own.

Look for everyday opportunities to strengthen these lessons. Bringing kids into simple decisions—like comparing prices at the grocery store, planning for a family outing or saving for something they want—can make money concepts much easier to understand.

Raising a family comes with plenty of expenses, from groceries to housing costs. Finding simple ways to save can help you make room in your budget while still enjoying the moments that matter most.

In summary, here are just a few lessons on how to save money on family expenses:

• Small changes, like meal planning, shopping secondhand and choosing affordable activities, can help lower everyday family expenses. 

• Planning ahead for larger costs, such as holidays and birthdays, can help you avoid financial stress and stay on track. 

• Talking to your kids about saving and spending can help your whole family build healthy money habits that last.

Teaching your kids about money is easier when they can see it working. Open a Kids Savings Account and together you can watch their money grow.