âčïž Skipped - page is already crawled
| Filter | Status | Condition | Details |
|---|---|---|---|
| HTTP status | PASS | download_http_code = 200 | HTTP 200 |
| Age cutoff | PASS | download_stamp > now() - 6 MONTH | 0 months ago |
| History drop | PASS | isNull(history_drop_reason) | No drop reason |
| Spam/ban | PASS | fh_dont_index != 1 AND ml_spam_score = 0 | ml_spam_score=0 |
| Canonical | PASS | meta_canonical IS NULL OR = '' OR = src_unparsed | Not set |
| Property | Value |
|---|---|
| URL | https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/ |
| Last Crawled | 2026-04-14 04:09:20 (5 hours ago) |
| First Indexed | 2024-07-14 09:09:23 (1 year ago) |
| HTTP Status Code | 200 |
| Meta Title | 10 Best Budgeting Tips for Families: Save More, Stress Less |
| Meta Description | Take control of your finances with these budgeting tips for families. Create a plan, cut costs, and save more. Start your family budget today! |
| Meta Canonical | null |
| Boilerpipe Text | Managing money seems tougher than ever these days. Rising prices, skyrocketing interest rates, credit card balances that never get smaller ⊠itâs a full-time battle for most of us and if youâre managing a family, it may seem impossible.
Sitting down to do a budget? Who has the time? And if you have no money, what good is a budget anyway, right?
The reality is that if you want to successfully manage your money, a monthly household budget is essential to get your familyâs money challenges on track, both immediate ones and long-term. Budgeting will help you manage money better, ease stress â both financial and physical â pay bills you may be avoiding, pay down debt, and even save for the future and emergencies.
A budget is simply a way to keep track of the money that comes in and managing how it goes out. Including the kids in the budget discussion will help make it work.
Letâs break it down into 10 budgeting tips for families that will help you build and maintain a strong financial foundation for you and your kids.
1. Create a Family Budget
All budgets start with a list of monthly income and expenses. Itâs a plan for how that income will be used to pay the bills, as well as achieve future goals.
How to make a budget
, though, is up to you. You can use software, an app, a spreadsheet, or just a legal pad and a pen. Thereâs no wrong way. The best monthly budget method is the one that youâll stick to.
A recent survey found that 84% of Americans who budget said they regularly overspend. If youâre spending more than what youâre taking in, the budget isnât working.
Be sure that you have all the financial information you need, itâs accurate, and that youâre realistic when you set budgeting goals. Youâre not chiseling your budget in stone. Assessing it monthly and making changes as needed is essential, as long as your goals are still being met.
To get started creating a family budget:
Write down total income, including all money sources that will contribute to paying the household expenses. If your income is irregular, find the monthly average and use that for a starting point.
Write down all household monthly expenses. Go through your checking account and round up your bills to be sure everything is included. Some expenses are fixed (the same every month), such as mortgage or rent, vehicle payment, insurance and cable. Others fluctuate â groceries, gas, credit card payments, electric bill, heating oil. Find an average by going through six months worth of each expense, adding them up and dividing by six (or whatever number of months youâve gathered).
Subtract expenses from income. If you come up with zero or less, that means you must reduce expenses. (Weâll discuss that later.)
Create a budget document that lists the income and each expense. Make non-fixed expenses, like food and gas, something realistic that you can stick to. Include money for savings. When deciding how much money to put toward items, be sure that youâre accounting for all of your familyâs monthly needs, as well as future goals.
That, in simple form, is your budget.
The digital world makes it easy to track spending and expenses. Your online bank account will show what you used your debit card for and what bills were taken out of your account. If youâre a member of a supermarket rewards program, your specific purchases may be listed in your online account.
Your bank account will also show your income deposits. If you have an online payroll account through your employer, thatâs another way to track income, as well as deductions and your retirement account deposits.
There are a lot of resources available online to help you budget. The federal government webpage
mymoney.gov
offers budgeting tools and resources. Your local bank or credit union may have a similar page.
There are many budgeting apps, websites and software programs available. If you use one, be sure itâs free, it helps you plan spending as well as tracking it, and that itâs easy for the adults in the family to access and use. Be sure to check the reviews, particularly the one-star ones, to make sure the app will work for you.
Many online budgeting tools require that you input all of your accounts and link to them. If you use one, be sure youâre diligent in the setup, and include all of your accounts, or you wonât get accurate information.
Managing your money and building a solid foundation for yourself and your family is one of the most important things you can do. Even though creating a budget may seem like a lot of work, itâs worth the effort.
. You may want to shield your kids from the harsh realities of the familyâs financial situation, but getting the kids involved is an important aspect of family budgeting. They donât have to know all the grisly details, but experts say that the earlier you start talking to kids about money and spending, the better habits theyâll build. Another benefit is that if your children feel that theyâre part of the decision-making process. When given agency and a mission, kids generally jump on board and might be the best budget advocates in the house.
2. Track Your Spending
Tracking spending is essential to sticking to your family budget. Itâs easy to ignore bad spending habits when youâre not paying attention. Once you are, you can identify patterns and make adjustments.
As you track spending and manage money better, youâll learn to control your money, rather than letting it control you.
This is another area where the digital world makes things easy.
Budgeting apps
are great for tracking. Depending on the app, you may even get notifications when you exceed a certain amount in a category. Keep in mind that some apps come with fees or subscription costs.
You can also use a spreadsheet, find free budget workbooks and tools online and write down spending in an online doc. Or, just use a pencil and paper and cross off bills as theyâre paid, or write down expenditures, subtracting them from the balance.
Some tips to track spending are:
Set up auto payment for as many bills as you can. Set them up to automatically come out of your bank account on the same day (the first of the month, for instance), so bills arenât coming out throughout the month. Just be sure the moneyâs in the bank on bill-paying day.
Set up a separate checking account, with its own debit card, for groceries, or groceries and gas. These can be the biggest budgeting challenges every month. Having a separate account makes it easier to keep an eye on spending.
Join a grocery and/or gas rewards program. Many of these have apps that show every purchase. You may be surprised at your spending. (âI bought a $5.99 bag of M&Ms three times last month? Holy cow!â)
Limit discretionary spending like grocery trips, gas fill-ups and entertainment or eating out to certain days of the week, or even one day.
No matter what tracking method you use, get the kids involved. Maybe youâve budgeted a certain amount a month for fast food. Write the total at the top of a whiteboard. After a fast-food trip, have the kids do the math (or help them do it), and record what was spent and how much is left. Discussing how to use the money (Takeout pizza twice a month? Expensive wings once a month?) will teach them how to make spending decisions.
3. Prioritize Essential Expenses
Keeping a roof over your familyâs head, the lights on and food on the table come first when budgeting. Prioritizing essential expenses is key to creating a budget that will keep you afloat.
Your budget should be clear on which expenses are âneedsâ and which are âwants.â (This is a great discussion to have with the kids.)
Every family has four basic needs: housing, food, transportation and utilities that keep the home livable (electricity, water, heat, etc.) Wi-Fi has become a necessity for most people, both for work and for engaging with services or the community.
Wants are expenses that support those needs. Cable service may be a utility, but you could live without it if you had to. Eating out, travel, a beer after work â many of the things you take for granted as âneedsâ are actually âwants.â
Your budget may mean tough choices in order to pay the rent or
utility bills
some months. Thatâs why sticking to a budget is important. Donât take money from needs to pay for wants, or you may not have enough for groceries or the rent.
Paying necessary expenses immediately ensures priorities are covered. Having a separate bank account for necessary bills is also a good way to make sure they get paid.
If you are scrambling to pay necessary, priority bills, itâs time to sit down as a family and discuss how to cut expenses.
4. Cut Down on Unnecessary Costs
Cutting down on unnecessary costs is a hard discussion, but itâs another opportunity to involve the entire family. When people feel theyâre part of the decision-making, itâs easier to let things go. Some decisions, though, will be up to the adults.
The first step may be to revisit the âwantsâ and âneedsâ discussion and see if there is room to eliminate more.
If you havenât already, do a thorough audit of subscriptions and get rid of ones you donât use or that you can live without.
Electricity bills can really spike in the heat of summer or cold of winter. If you live in a hot region, see if you can live with less AC, and cut down on it. If you live in a cold region, see if you can turn down the thermostat and bundle up. Drying clothes on a line can reduce an electric bill enormously. Making sure your refrigerator is operating correctly can also save money.
Shop around for a grocery store that has a rewards program. Some give discounts or even money back when you buy store brands, and also provide coupons digitally. The Mitchell family, who live in Maine, are members of their supermarket chainâs rewards program and every quarter they get cash back for buying store brands.
Rebecca Mitchell, who cares for a teenager and two elderly parents, said she gets about $30-$40 back each quarter from her supermarket rewards program, with the highest amount $58. âWhen I get the rewards, it really helps with that weekâs grocery bill,â she said. âIt may not seem like a lot, but it makes a difference. It puts a little slack in the budget.â
Grocery spending can be the biggest challenge for a family, and the hardest place to cut costs. If your rewards program lists specific purchases, go through those with the kids and discuss changes, or meals you can make, to reduce what you spend.
Listing the things you didnât spend money on and how much you saved can be a great way to see the benefits of your sacrifice. For instance, letâs say you enjoy a $3.75 vanilla latte three days a week at the local coffee shop. Instead of buying the coffee, make a chart for it and write down $3.75 for every day you wouldâve bought one but didnât. If that was 12 days in the month, youâve saved $45. Seeing that in black and white may be the motivation you need.
There are a lot of ways for families to cut costs and still have fun. Making meals at home and limiting snacks to a special day of the week can reduce grocery expenses. Going for walks, or to the playground, instead of the movies or a fast-food restaurant, adds quality time as well as money to your budget. Jigsaw puzzles and board games are fun, and also encourage much more interaction than many activities that cost money. Libraries, even in small towns, have movies and games to lend for free, as well as free programs for kids and adults.
5. Set Financial Goals
The family budget isnât just about paying monthly bills and keeping a lid on spending. Itâs also about
financial goals
, both short-term and long-term.
Every family budget should prioritize an
emergency fund
. The rule of thumb is to save 3-6 months of expenses. Donât panic, though, if you canât do that immediately. Every little bit helps. Budget an amount every month, whether itâs $25 or $250, or whatever you can afford. Â Deposit it, and donât touch it.
Savings
for other purposes are also important. Goals may be a vacation, retirement, a college fund for the kids, money on hand for a new car when the clunker dies, or a down payment for a house. Paying down debt may also be a goal (and should be if you have a lot of it).
How will you achieve these goals within your budget? Whatâs the timeline? Can the amount and timeline be adjusted in the future if your financial situation changes?
The adults in the family should discuss goals and where they are on the priority list. Reaching those goals should be realistic and manageable. There are many formulas for saving, including putting a percentage of your income into savings. Donât feel that you have to follow someone elseâs rigid formula. Figuring out what works best for you within your budget is the best way to stay on track.
If the budget allows it, squeeze in something fun for the kids that they can contribute to as a way to get them involved in budgeting and saving. Maybe itâs for a vacation, a specific purchase, or just a âfun fundâ that they can discuss what it will be spent on as it grows. They can learn about delaying gratification, and comparing less expensive wants to expensive ones. Create a chart they can update as their funds increase.
6. Involve the Whole Family
Weâve mentioned ways to involve the kids in the family budgeting process. Donât discount the importance of it. No matter their age, including children has many benefits.
From a practical standpoint, it encourages cooperation. Theyâll be more willing to make sacrifices if they are included in the decisions.
The bigger benefit is that
teaching kids
about money will build financial literacy that instills good spending and saving habits that will benefit them throughout their life.
Some ways to get the family involved in the household budget that will also build good habits and contribute to financial literacy:
Hold monthly budget meetings. Always have some positives to discuss, even if tough decisions are being made, particularly if the kids are young. The monthâs wins can be a great topic. Did a child help pick out a healthy, cheaper snack at the store? Agree to give up a fast-food outing in favor of making a meal at home?
Seek input from the kids and listen to what they have to say. If you donât agree with them, have a respectful discussion about it.
Have kids help with the grocery shopping. Bring them with you to the store and discuss what youâre buying and why. Have them help with purchase choices from the perspective of good financial decisions.
Give younger kids an allowance if you can fit it into the budget. Agree on a portion that will go into a savings account. Bring them to the bank and let them deposit the money themselves and have them track the money as it grows. Discuss how theyâll spend what they
Older kids can contribute to expenses, or their college fund, if theyâre employed. Or they can pay for their own clothes and entertainment. Find ways to give them some say in some of the householdâs decisions if theyâre contributing.
Be a role model for mindful spending. Have a âno impulse buyâ rule for everyone in the household. Instead of making a spontaneous purchase, have a âcooling offâ period (3-7 days) during which the pros and cons can be weighed.
7. Use Cash for Discretionary Spending
Weâve talked a lot about how much easier the digital world has made budgeting. But thereâs one trick that goes back to pre-digital days that can be effective, both practically and psychologically, when it comes to curbing spending â use cash for discretionary spending. Â When you have to count out cash, rather than whip out a card, you see the actual money leave your fingers. Itâs easy when using a card to ignore the fact thereâs a limited amount of money at the other end. If itâs a credit card, that can be financially disastrous.
Using cash forces you to acknowledge your spending in real time. Spending becomes mindful, rather than mindless.
One budgeting trick from the olden days has gained a new following: the
cash envelope system
.
The cash envelope system is simple:
Label separate envelopes for each discretionary spending category: food, gas, eating out, clothes, etc.
Put the monthly budgeted amount of cash in each envelope.
Spend for the category out of the envelope, writing on it how much you spent and what you spent it on.
The method may be hard to get the hang of if youâve used credit cards most of your life. Be sure to have the envelope with you when you need it. If you donât have it, donât make the purchase until you do, if possible.
There are envelope apps that serve the same purpose, but using real envelopes and real cash is the key to paying attention to your money and spending. If you donât have enough money, or too much, in an envelope at the end of the month, adjust your budget for those categories.
8. Automate Savings
While old-school cash is a great way to curb spending, diving into the digital age is the best way to stay on track when saving money.
Having money go directly from your paycheck to a savings account, before you even know itâs there, means you donât have to make the decision yourself. This helps you to be consistent and stay on track.
There are a lot of ways to engage in
automatic savings
.
If your paycheck is direct deposit at work, have a portion go into a savings account. You can also set up an automatic transfer from your checking account to savings. With most banks, it takes just seconds online if both accounts are at the same bank.
There are also apps that help you save by rounding up purchases to the next dollar and putting the difference into a savings account.
Whatever automatic savings method you choose, make sure itâs âset it and forget it.â In other words, once youâve set up the account, you donât have to do anything but save every month.
It may be hard if youâre living on a tight budget to not dip into savings. If this is an issue, there are many ways to make savings less accessible. For instance, open an account at a bank where you donât have any other accounts, donât link it to your regular bank, and donât get a debit card. This forces you to physically go to the bank to make withdrawals. (Be sure that your emergency fund is an account you can access when needed.)
Once youâve accumulated some savings, you may want to put it into a certificate of deposit account. CD accounts donât allow withdrawals for a certain amount of time, usually 6-12 months. When the term ends, you can roll it into another CD. Another benefit is that they have higher interest than a traditional savings account.
Your bank or credit union may also have specialty savings accounts where you can sock away money for retirement, college, or a home down payment. Many also have âChristmas Clubs,â or similar programs, where you put a specific amount in every week, or month, and it becomes available in December.
However you save, check fees and make sure the account serves your purposes before you set it up. Then forget it.
9. Plan for Irregular Expenses
No matter how carefully you budget, there are going to be surprises that will cost money. Your family budget must make room for irregular expenses like car repairs,
medical bills
, your sisterâs destination wedding, holidays, birthdays, or anything thatâs not an emergency, but not something thatâs a regular monthly expense.
Some of these expenses are truly unexpected, some are simply irregular. Either way, you can plan for them. Planning and anticipating irregular expenses will help you navigate them without a big budget hit.
Your budget should include an unexpected expenses account that is separate from your emergency account. It may stretch your money to its limits to have one more savings account, but it will pay off when you need the money.
Another savings account isnât the only way to prepare for irregular expenses. You know that youâll likely spend more during the holidays, or for someoneâs birthday. Your sister did give you notice about her wedding. If you live in a northern state, in October youâre going to need $1,000 for snow tires.
You know itâs coming, so adjust your budget in advance to accommodate it. Understand your budget and identify flexibilities, so you can plan ahead within the budget to cover irregular expenses. Â This may mean cutting expenses for a few months, or temporarily recalibrating amounts going into savings or paying down debt. Since itâs your unique budget, you know best how to make those temporary adjustments in ways that wonât have a negative impact on priorities or other bills.
10. Review and Adjust Regularly
Your family budget is not chiseled in stone. Review it regularly and make adjustments when needed, always with your familyâs needs, priorities and goals in mind.
Things change, no matter the size of a family. Income decreases or increases, expenses change. Family size may change, too. If youâre successful at paying down credit cards, you may have more money for savings, or to get a car that doesnât require repairs every other week.
A monthly family budget meeting will help you manage changes, stay on track and keep the kids on message. The adults in the family should do an overall assessment periodically, for instance quarterly. Schedule budget meetings and stick to them. Itâs easy to let life get in the way, but few things are as important as your familyâs financial foundation.
Closing the Budget Loop
Family life is a busy life. Donât let it get in the way of creating a budget, sticking to it, and staying on top of changes.
Itâs easy to lose track of where the money is going. Remember the survey at the beginning that found 84% of Americans with a budget overspend? It also found that 44% use a credit card to cover additional expenses. Maintaining high credit card balances can skew a budget, if not blow it up.
There is no downside to having a monthly family budget. The work you put in will pay off in countless ways.
Some of the biggest
benefits of budgeting
are:
A clear picture of how your money is being spent
Control of spending
Identifying and working toward goals
Identifying financial challenges and strategizing on overcoming them
Easing household stress and anxiety
Opening discussions on money, values and goals
Building a firm financial foundation for kids
Donât wait to create a family budget. You can start on these family budgeting tips today. Gather your financial information, go over it with the household adult partners, then hold a family meeting and start budgeting. The sooner you do it, the sooner you will see the rewards. |
| Markdown | 
[Skip to content](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/#fl-main-content)
- [Hours of Operation](https://www.incharge.org/hours-of-operation/)
- [Client Login](https://help.incharge.org/)
- [Español](https://www.incharge.org/es/educacion-financiera/presupuesto-ahorro/consejos-de-presupuesto-familiares/ "Switch to Español")
[Search InCharge.org](https://www.incharge.org/search/)
[](https://www.incharge.org/)
- [Debt Help](https://www.incharge.org/debt-relief/)
- [Debt Consolidation](https://www.incharge.org/debt-relief/debt-consolidation/)
- [Debt Management](https://www.incharge.org/debt-relief/debt-management/)
- [Debt Settlement](https://www.incharge.org/debt-relief/debt-settlement/)
- [Credit Card Debt Forgiveness](https://www.incharge.org/debt-relief/credit-card-debt-forgiveness/)
- [Bankruptcy](https://www.incharge.org/bankruptcy/)
- [Debt Consolidation Programs](https://www.incharge.org/debt-relief/debt-consolidation/free-debt-credit-consolidation/)
- [Military & Veteran Debt Relief](https://www.incharge.org/debt-relief/credit-counseling/military-debt-relief/)
- [Counseling](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Credit Counseling](https://www.incharge.org/debt-relief/credit-counseling/)
- [Online Bankruptcy Classes](https://www.incharge.org/bankruptcy/bankruptcy-education/)
- [Housing Counseling](https://www.incharge.org/housing/)
- [Foreclosure Prevention Counseling](https://www.incharge.org/housing/foreclosure-prevention/)
- [Eviction Prevention Help](https://www.incharge.org/housing/eviction/)
- [Understanding Debt](https://www.incharge.org/understanding-debt/)
- [Debt Information](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Credit Card Debt](https://www.incharge.org/understanding-debt/credit-card/)
- [Student Loan Debt Relief](https://www.incharge.org/understanding-debt/student/)
- [Auto Loans](https://www.incharge.org/understanding-debt/auto/)
- [Family Finances](https://www.incharge.org/understanding-debt/family/)
- [Credit Scores & Credit Reports](https://www.incharge.org/debt-relief/credit-counseling/credit-score-and-credit-report/)
- [Getting Out of Debt with Bad Credit](https://www.incharge.org/debt-relief/credit-counseling/bad-credit/)
- [Helpful Resources](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Financial Literacy](https://www.incharge.org/financial-literacy/)
- [Financial Help](https://www.incharge.org/debt-relief/financial-help/)
- [Tools & Resources](https://www.incharge.org/tools-resources/)
- [Budgeting Tips](https://www.incharge.org/financial-literacy/budgeting-saving/)
- [Military Money](https://www.incharge.org/military-money/)
- [About Us](https://www.incharge.org/about-us/)
- [Your Dream Team](https://www.incharge.org/about-us/team/)
- [Contact Us](https://www.incharge.org/contact/)
- [Hours of Operation](https://www.incharge.org/hours-of-operation/)
- [Client Success Stories](https://www.incharge.org/debt-relief/credit-counseling/success-stories/)
- [Careers](https://www.incharge.org/about-us/careers/)
- [Partner With Us](https://www.incharge.org/about-us/partner-with-us/)
- [Blog](https://www.incharge.org/blog/)
- [Events](https://www.incharge.org/events/)
[(800) 565-8953](tel:8005658953 "(800) 565-8953")
[](https://www.incharge.org/)
- [Español](https://www.incharge.org/es/educacion-financiera/presupuesto-ahorro/consejos-de-presupuesto-familiares/ "Switch to Español")
[Login In](https://help.incharge.org/)
[Search InCharge.org](https://www.incharge.org/search/)
- [Debt Help](https://www.incharge.org/debt-relief/)
- [Debt Consolidation](https://www.incharge.org/debt-relief/debt-consolidation/)
- [Debt Management](https://www.incharge.org/debt-relief/debt-management/)
- [Debt Settlement](https://www.incharge.org/debt-relief/debt-settlement/)
- [Credit Card Debt Forgiveness](https://www.incharge.org/debt-relief/credit-card-debt-forgiveness/)
- [Bankruptcy](https://www.incharge.org/bankruptcy/)
- [Debt Consolidation Programs](https://www.incharge.org/debt-relief/debt-consolidation/free-debt-credit-consolidation/)
- [Military & Veteran Debt Relief](https://www.incharge.org/debt-relief/credit-counseling/military-debt-relief/)
- [Counseling](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Credit Counseling](https://www.incharge.org/debt-relief/credit-counseling/)
- [Online Bankruptcy Classes](https://www.incharge.org/bankruptcy/bankruptcy-education/)
- [Housing Counseling](https://www.incharge.org/housing/)
- [Foreclosure Prevention Counseling](https://www.incharge.org/housing/foreclosure-prevention/)
- [Eviction Prevention Help](https://www.incharge.org/housing/eviction/)
- [Understanding Debt](https://www.incharge.org/understanding-debt/)
- [Debt Information](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Credit Card Debt](https://www.incharge.org/understanding-debt/credit-card/)
- [Student Loan Debt Relief](https://www.incharge.org/understanding-debt/student/)
- [Auto Loans](https://www.incharge.org/understanding-debt/auto/)
- [Family Finances](https://www.incharge.org/understanding-debt/family/)
- [Credit Scores & Credit Reports](https://www.incharge.org/debt-relief/credit-counseling/credit-score-and-credit-report/)
- [Getting Out of Debt with Bad Credit](https://www.incharge.org/debt-relief/credit-counseling/bad-credit/)
- [Helpful Resources](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Financial Literacy](https://www.incharge.org/financial-literacy/)
- [Financial Help](https://www.incharge.org/debt-relief/financial-help/)
- [Tools & Resources](https://www.incharge.org/tools-resources/)
- [Budgeting Tips](https://www.incharge.org/financial-literacy/budgeting-saving/)
- [Military Money](https://www.incharge.org/military-money/)
- [About Us](https://www.incharge.org/about-us/)
- [Your Dream Team](https://www.incharge.org/about-us/team/)
- [Contact Us](https://www.incharge.org/contact/)
- [Hours of Operation](https://www.incharge.org/hours-of-operation/)
- [Client Success Stories](https://www.incharge.org/debt-relief/credit-counseling/success-stories/)
- [Careers](https://www.incharge.org/about-us/careers/)
- [Partner With Us](https://www.incharge.org/about-us/partner-with-us/)
- [Blog](https://www.incharge.org/blog/)
- [Events](https://www.incharge.org/events/)
[Call Today: (800) 565-8953](tel:8005658953 "Call Today: (800) 565-8953")
# Budgeting Tips for Families
Updated: July 12, 2024 \| [Maureen Milliken](https://www.incharge.org/blog/author/mmilliken/)
Managing money seems tougher than ever these days. Rising prices, skyrocketing interest rates, credit card balances that never get smaller ⊠itâs a full-time battle for most of us and if youâre managing a family, it may seem impossible.
Sitting down to do a budget? Who has the time? And if you have no money, what good is a budget anyway, right?
The reality is that if you want to successfully manage your money, a monthly household budget is essential to get your familyâs money challenges on track, both immediate ones and long-term. Budgeting will help you manage money better, ease stress â both financial and physical â pay bills you may be avoiding, pay down debt, and even save for the future and emergencies.
A budget is simply a way to keep track of the money that comes in and managing how it goes out. Including the kids in the budget discussion will help make it work.
Letâs break it down into 10 budgeting tips for families that will help you build and maintain a strong financial foundation for you and your kids.
## 1\. Create a Family Budget
All budgets start with a list of monthly income and expenses. Itâs a plan for how that income will be used to pay the bills, as well as achieve future goals. [How to make a budget](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-make-a-budget/), though, is up to you. You can use software, an app, a spreadsheet, or just a legal pad and a pen. Thereâs no wrong way. The best monthly budget method is the one that youâll stick to.
A recent survey found that 84% of Americans who budget said they regularly overspend. If youâre spending more than what youâre taking in, the budget isnât working.
Be sure that you have all the financial information you need, itâs accurate, and that youâre realistic when you set budgeting goals. Youâre not chiseling your budget in stone. Assessing it monthly and making changes as needed is essential, as long as your goals are still being met.
**To get started creating a family budget:**
- Write down total income, including all money sources that will contribute to paying the household expenses. If your income is irregular, find the monthly average and use that for a starting point.
- Write down all household monthly expenses. Go through your checking account and round up your bills to be sure everything is included. Some expenses are fixed (the same every month), such as mortgage or rent, vehicle payment, insurance and cable. Others fluctuate â groceries, gas, credit card payments, electric bill, heating oil. Find an average by going through six months worth of each expense, adding them up and dividing by six (or whatever number of months youâve gathered).
- Subtract expenses from income. If you come up with zero or less, that means you must reduce expenses. (Weâll discuss that later.)
- Create a budget document that lists the income and each expense. Make non-fixed expenses, like food and gas, something realistic that you can stick to. Include money for savings. When deciding how much money to put toward items, be sure that youâre accounting for all of your familyâs monthly needs, as well as future goals.
That, in simple form, is your budget.
The digital world makes it easy to track spending and expenses. Your online bank account will show what you used your debit card for and what bills were taken out of your account. If youâre a member of a supermarket rewards program, your specific purchases may be listed in your online account.
Your bank account will also show your income deposits. If you have an online payroll account through your employer, thatâs another way to track income, as well as deductions and your retirement account deposits.
There are a lot of resources available online to help you budget. The federal government webpage [mymoney.gov](https://www.mymoney.gov/tools) offers budgeting tools and resources. Your local bank or credit union may have a similar page.
There are many budgeting apps, websites and software programs available. If you use one, be sure itâs free, it helps you plan spending as well as tracking it, and that itâs easy for the adults in the family to access and use. Be sure to check the reviews, particularly the one-star ones, to make sure the app will work for you.
Many online budgeting tools require that you input all of your accounts and link to them. If you use one, be sure youâre diligent in the setup, and include all of your accounts, or you wonât get accurate information.
Managing your money and building a solid foundation for yourself and your family is one of the most important things you can do. Even though creating a budget may seem like a lot of work, itâs worth the effort.
. You may want to shield your kids from the harsh realities of the familyâs financial situation, but getting the kids involved is an important aspect of family budgeting. They donât have to know all the grisly details, but experts say that the earlier you start talking to kids about money and spending, the better habits theyâll build. Another benefit is that if your children feel that theyâre part of the decision-making process. When given agency and a mission, kids generally jump on board and might be the best budget advocates in the house.
## 2\. Track Your Spending
Tracking spending is essential to sticking to your family budget. Itâs easy to ignore bad spending habits when youâre not paying attention. Once you are, you can identify patterns and make adjustments.
As you track spending and manage money better, youâll learn to control your money, rather than letting it control you.
This is another area where the digital world makes things easy. [Budgeting apps](https://www.incharge.org/tools-resources/best-budget-apps/) are great for tracking. Depending on the app, you may even get notifications when you exceed a certain amount in a category. Keep in mind that some apps come with fees or subscription costs.
You can also use a spreadsheet, find free budget workbooks and tools online and write down spending in an online doc. Or, just use a pencil and paper and cross off bills as theyâre paid, or write down expenditures, subtracting them from the balance.
**Some tips to track spending are:**
- Set up auto payment for as many bills as you can. Set them up to automatically come out of your bank account on the same day (the first of the month, for instance), so bills arenât coming out throughout the month. Just be sure the moneyâs in the bank on bill-paying day.
- Set up a separate checking account, with its own debit card, for groceries, or groceries and gas. These can be the biggest budgeting challenges every month. Having a separate account makes it easier to keep an eye on spending.
- Join a grocery and/or gas rewards program. Many of these have apps that show every purchase. You may be surprised at your spending. (âI bought a \$5.99 bag of M\&Ms three times last month? Holy cow!â)
- Limit discretionary spending like grocery trips, gas fill-ups and entertainment or eating out to certain days of the week, or even one day.
No matter what tracking method you use, get the kids involved. Maybe youâve budgeted a certain amount a month for fast food. Write the total at the top of a whiteboard. After a fast-food trip, have the kids do the math (or help them do it), and record what was spent and how much is left. Discussing how to use the money (Takeout pizza twice a month? Expensive wings once a month?) will teach them how to make spending decisions.
## 3\. Prioritize Essential Expenses
Keeping a roof over your familyâs head, the lights on and food on the table come first when budgeting. Prioritizing essential expenses is key to creating a budget that will keep you afloat.
Your budget should be clear on which expenses are âneedsâ and which are âwants.â (This is a great discussion to have with the kids.)
Every family has four basic needs: housing, food, transportation and utilities that keep the home livable (electricity, water, heat, etc.) Wi-Fi has become a necessity for most people, both for work and for engaging with services or the community.
Wants are expenses that support those needs. Cable service may be a utility, but you could live without it if you had to. Eating out, travel, a beer after work â many of the things you take for granted as âneedsâ are actually âwants.â
Your budget may mean tough choices in order to pay the rent or [utility bills](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-electric-gas-water-bill/) some months. Thatâs why sticking to a budget is important. Donât take money from needs to pay for wants, or you may not have enough for groceries or the rent.
Paying necessary expenses immediately ensures priorities are covered. Having a separate bank account for necessary bills is also a good way to make sure they get paid.
If you are scrambling to pay necessary, priority bills, itâs time to sit down as a family and discuss how to cut expenses.
## 4\. Cut Down on Unnecessary Costs
Cutting down on unnecessary costs is a hard discussion, but itâs another opportunity to involve the entire family. When people feel theyâre part of the decision-making, itâs easier to let things go. Some decisions, though, will be up to the adults.
The first step may be to revisit the âwantsâ and âneedsâ discussion and see if there is room to eliminate more.
If you havenât already, do a thorough audit of subscriptions and get rid of ones you donât use or that you can live without.
Electricity bills can really spike in the heat of summer or cold of winter. If you live in a hot region, see if you can live with less AC, and cut down on it. If you live in a cold region, see if you can turn down the thermostat and bundle up. Drying clothes on a line can reduce an electric bill enormously. Making sure your refrigerator is operating correctly can also save money.
Shop around for a grocery store that has a rewards program. Some give discounts or even money back when you buy store brands, and also provide coupons digitally. The Mitchell family, who live in Maine, are members of their supermarket chainâs rewards program and every quarter they get cash back for buying store brands.
Rebecca Mitchell, who cares for a teenager and two elderly parents, said she gets about \$30-\$40 back each quarter from her supermarket rewards program, with the highest amount \$58. âWhen I get the rewards, it really helps with that weekâs grocery bill,â she said. âIt may not seem like a lot, but it makes a difference. It puts a little slack in the budget.â
Grocery spending can be the biggest challenge for a family, and the hardest place to cut costs. If your rewards program lists specific purchases, go through those with the kids and discuss changes, or meals you can make, to reduce what you spend.
Listing the things you didnât spend money on and how much you saved can be a great way to see the benefits of your sacrifice. For instance, letâs say you enjoy a \$3.75 vanilla latte three days a week at the local coffee shop. Instead of buying the coffee, make a chart for it and write down \$3.75 for every day you wouldâve bought one but didnât. If that was 12 days in the month, youâve saved \$45. Seeing that in black and white may be the motivation you need.
There are a lot of ways for families to cut costs and still have fun. Making meals at home and limiting snacks to a special day of the week can reduce grocery expenses. Going for walks, or to the playground, instead of the movies or a fast-food restaurant, adds quality time as well as money to your budget. Jigsaw puzzles and board games are fun, and also encourage much more interaction than many activities that cost money. Libraries, even in small towns, have movies and games to lend for free, as well as free programs for kids and adults.
## 5\. Set Financial Goals
The family budget isnât just about paying monthly bills and keeping a lid on spending. Itâs also about [financial goals](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-set-financial-goals/), both short-term and long-term.
Every family budget should prioritize an [emergency fund](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-an-emergency-fund/). The rule of thumb is to save 3-6 months of expenses. Donât panic, though, if you canât do that immediately. Every little bit helps. Budget an amount every month, whether itâs \$25 or \$250, or whatever you can afford. Deposit it, and donât touch it.
[Savings](https://www.incharge.org/financial-literacy/budgeting-saving/) for other purposes are also important. Goals may be a vacation, retirement, a college fund for the kids, money on hand for a new car when the clunker dies, or a down payment for a house. Paying down debt may also be a goal (and should be if you have a lot of it).
How will you achieve these goals within your budget? Whatâs the timeline? Can the amount and timeline be adjusted in the future if your financial situation changes?
The adults in the family should discuss goals and where they are on the priority list. Reaching those goals should be realistic and manageable. There are many formulas for saving, including putting a percentage of your income into savings. Donât feel that you have to follow someone elseâs rigid formula. Figuring out what works best for you within your budget is the best way to stay on track.
If the budget allows it, squeeze in something fun for the kids that they can contribute to as a way to get them involved in budgeting and saving. Maybe itâs for a vacation, a specific purchase, or just a âfun fundâ that they can discuss what it will be spent on as it grows. They can learn about delaying gratification, and comparing less expensive wants to expensive ones. Create a chart they can update as their funds increase.
## 6\. Involve the Whole Family
Weâve mentioned ways to involve the kids in the family budgeting process. Donât discount the importance of it. No matter their age, including children has many benefits.
From a practical standpoint, it encourages cooperation. Theyâll be more willing to make sacrifices if they are included in the decisions.
The bigger benefit is that [teaching kids](https://www.incharge.org/financial-literacy/budgeting-saving/teach-kids-to-save/) about money will build financial literacy that instills good spending and saving habits that will benefit them throughout their life.
Some ways to get the family involved in the household budget that will also build good habits and contribute to financial literacy:
- Hold monthly budget meetings. Always have some positives to discuss, even if tough decisions are being made, particularly if the kids are young. The monthâs wins can be a great topic. Did a child help pick out a healthy, cheaper snack at the store? Agree to give up a fast-food outing in favor of making a meal at home?
- Seek input from the kids and listen to what they have to say. If you donât agree with them, have a respectful discussion about it.
- Have kids help with the grocery shopping. Bring them with you to the store and discuss what youâre buying and why. Have them help with purchase choices from the perspective of good financial decisions.
- Give younger kids an allowance if you can fit it into the budget. Agree on a portion that will go into a savings account. Bring them to the bank and let them deposit the money themselves and have them track the money as it grows. Discuss how theyâll spend what they
- Older kids can contribute to expenses, or their college fund, if theyâre employed. Or they can pay for their own clothes and entertainment. Find ways to give them some say in some of the householdâs decisions if theyâre contributing.
- Be a role model for mindful spending. Have a âno impulse buyâ rule for everyone in the household. Instead of making a spontaneous purchase, have a âcooling offâ period (3-7 days) during which the pros and cons can be weighed.
## 7\. Use Cash for Discretionary Spending
Weâve talked a lot about how much easier the digital world has made budgeting. But thereâs one trick that goes back to pre-digital days that can be effective, both practically and psychologically, when it comes to curbing spending â use cash for discretionary spending. When you have to count out cash, rather than whip out a card, you see the actual money leave your fingers. Itâs easy when using a card to ignore the fact thereâs a limited amount of money at the other end. If itâs a credit card, that can be financially disastrous.
Using cash forces you to acknowledge your spending in real time. Spending becomes mindful, rather than mindless.
One budgeting trick from the olden days has gained a new following: the [cash envelope system](https://www.incharge.org/financial-literacy/budgeting-saving/envelope-budget-system/).
**The cash envelope system is simple:**
- Label separate envelopes for each discretionary spending category: food, gas, eating out, clothes, etc.
- Put the monthly budgeted amount of cash in each envelope.
- Spend for the category out of the envelope, writing on it how much you spent and what you spent it on.
The method may be hard to get the hang of if youâve used credit cards most of your life. Be sure to have the envelope with you when you need it. If you donât have it, donât make the purchase until you do, if possible.
There are envelope apps that serve the same purpose, but using real envelopes and real cash is the key to paying attention to your money and spending. If you donât have enough money, or too much, in an envelope at the end of the month, adjust your budget for those categories.
## 8\. Automate Savings
While old-school cash is a great way to curb spending, diving into the digital age is the best way to stay on track when saving money.
Having money go directly from your paycheck to a savings account, before you even know itâs there, means you donât have to make the decision yourself. This helps you to be consistent and stay on track.
There are a lot of ways to engage in [automatic savings](https://www.incharge.org/financial-literacy/budgeting-saving/making-saving-automatic/).
If your paycheck is direct deposit at work, have a portion go into a savings account. You can also set up an automatic transfer from your checking account to savings. With most banks, it takes just seconds online if both accounts are at the same bank.
There are also apps that help you save by rounding up purchases to the next dollar and putting the difference into a savings account.
Whatever automatic savings method you choose, make sure itâs âset it and forget it.â In other words, once youâve set up the account, you donât have to do anything but save every month.
It may be hard if youâre living on a tight budget to not dip into savings. If this is an issue, there are many ways to make savings less accessible. For instance, open an account at a bank where you donât have any other accounts, donât link it to your regular bank, and donât get a debit card. This forces you to physically go to the bank to make withdrawals. (Be sure that your emergency fund is an account you can access when needed.)
Once youâve accumulated some savings, you may want to put it into a certificate of deposit account. CD accounts donât allow withdrawals for a certain amount of time, usually 6-12 months. When the term ends, you can roll it into another CD. Another benefit is that they have higher interest than a traditional savings account.
Your bank or credit union may also have specialty savings accounts where you can sock away money for retirement, college, or a home down payment. Many also have âChristmas Clubs,â or similar programs, where you put a specific amount in every week, or month, and it becomes available in December.
However you save, check fees and make sure the account serves your purposes before you set it up. Then forget it.
## 9\. Plan for Irregular Expenses
No matter how carefully you budget, there are going to be surprises that will cost money. Your family budget must make room for irregular expenses like car repairs, [medical bills](https://www.incharge.org/debt-relief/debt-consolidation/medical-debt/), your sisterâs destination wedding, holidays, birthdays, or anything thatâs not an emergency, but not something thatâs a regular monthly expense.
Some of these expenses are truly unexpected, some are simply irregular. Either way, you can plan for them. Planning and anticipating irregular expenses will help you navigate them without a big budget hit.
Your budget should include an unexpected expenses account that is separate from your emergency account. It may stretch your money to its limits to have one more savings account, but it will pay off when you need the money.
Another savings account isnât the only way to prepare for irregular expenses. You know that youâll likely spend more during the holidays, or for someoneâs birthday. Your sister did give you notice about her wedding. If you live in a northern state, in October youâre going to need \$1,000 for snow tires.
You know itâs coming, so adjust your budget in advance to accommodate it. Understand your budget and identify flexibilities, so you can plan ahead within the budget to cover irregular expenses. This may mean cutting expenses for a few months, or temporarily recalibrating amounts going into savings or paying down debt. Since itâs your unique budget, you know best how to make those temporary adjustments in ways that wonât have a negative impact on priorities or other bills.
## 10\. Review and Adjust Regularly
Your family budget is not chiseled in stone. Review it regularly and make adjustments when needed, always with your familyâs needs, priorities and goals in mind.
Things change, no matter the size of a family. Income decreases or increases, expenses change. Family size may change, too. If youâre successful at paying down credit cards, you may have more money for savings, or to get a car that doesnât require repairs every other week.
A monthly family budget meeting will help you manage changes, stay on track and keep the kids on message. The adults in the family should do an overall assessment periodically, for instance quarterly. Schedule budget meetings and stick to them. Itâs easy to let life get in the way, but few things are as important as your familyâs financial foundation.
## Closing the Budget Loop
Family life is a busy life. Donât let it get in the way of creating a budget, sticking to it, and staying on top of changes.
Itâs easy to lose track of where the money is going. Remember the survey at the beginning that found 84% of Americans with a budget overspend? It also found that 44% use a credit card to cover additional expenses. Maintaining high credit card balances can skew a budget, if not blow it up.
There is no downside to having a monthly family budget. The work you put in will pay off in countless ways.
**Some of the biggest [benefits of budgeting](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-benefits/) are:**
- A clear picture of how your money is being spent
- Control of spending
- Identifying and working toward goals
- Identifying financial challenges and strategizing on overcoming them
- Easing household stress and anxiety
- Opening discussions on money, values and goals
- Building a firm financial foundation for kids
Donât wait to create a family budget. You can start on these family budgeting tips today. Gather your financial information, go over it with the household adult partners, then hold a family meeting and start budgeting. The sooner you do it, the sooner you will see the rewards.
[](https://www.incharge.org/wp-content/uploads/2024/07/budgeting-tips-for-families.jpg)
Table of Contents
Add a header to begin generating the table of contents
### Budgeting Menu
Budgeting Menu
- [Budgeting & Saving](https://www.incharge.org/financial-literacy/budgeting-saving/)
- [How to Make a Monthly Budget](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-make-a-budget/)
- [How To Set Financial Goals](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-set-financial-goals/)
- [Emergency Funds](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-an-emergency-fund/)
- [10 Ways to Save Money on Rent Payments](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-rent/)
- [How to Reduce Monthly Mortgage Payments](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-reduce-mortgage-rent-payments/)
- [How to Save Money on Gas](https://www.incharge.org/financial-literacy/budgeting-saving/gas-saving-tips/)
- [How to Save Money on Internet: Free and Low Cost Broadband](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-get-cheap-internet/)
- [Cheap Cell Phone Contracts](https://www.incharge.org/financial-literacy/budgeting-saving/cheap-cell-phone-plans/)
- [How to Save Money on Utilities](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-electric-gas-water-bill/)
- [How to Save Money on Air Conditioning](https://www.incharge.org/financial-literacy/budgeting-saving/save-money-on-air-conditioning/)
- [How To Reduce Your Gas Bill](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-lower-your-winter-gas-bill/)
- [Winter Energy Saving Tips](https://www.incharge.org/financial-literacy/budgeting-saving/winter-energy-saving-tips/)
- [How To Save On Heating Bills](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-on-heating-bill/)
- [How to Save Money on Water Bills](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-on-water-bill/)
- [10 Tips to Save on Heating Costs in Your Apartment](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-on-heating-costs-in-an-apartment/)
- [How To Save Money On Homeownerâs Insurance](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-homeowners-insurance/)
- [Teaching Kids About Money](https://www.incharge.org/financial-literacy/budgeting-saving/teach-kids-to-save/)
- [How To Cut Your Expenses](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-cut-your-expenses/)
- [How To Save Money on Food at Restaurants and the Grocery Store](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-food-at-restaurants-and-the-grocery-store/)
- [14 Tips To Save More On Groceries](https://www.incharge.org/financial-literacy/budgeting-saving/saving-money-at-the-grocery-store/)
- [How to Make a Money Saving Meal Plan](https://www.incharge.org/financial-literacy/budgeting-saving/money-saving-meal-plan/)
- [Budgeting for Couples](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-for-couples/)
- [Budgeting for a Baby](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-for-a-baby/)
- [How To Automate Your Savings](https://www.incharge.org/financial-literacy/budgeting-saving/making-saving-automatic/)
- [Find The Best Bank For You](https://www.incharge.org/financial-literacy/budgeting-saving/find-a-no-fee-bank-account/)
- [Opening a Free Savings Account With No Minimum Balance](https://www.incharge.org/financial-literacy/budgeting-saving/free-savings-account-no-minimum-balance/)
- [The 50/30/20 Rule for Budgeting](https://www.incharge.org/financial-literacy/budgeting-saving/50-30-20-rule/)
- [Introduction to Compound Interest](https://www.incharge.org/financial-literacy/budgeting-saving/introduction-to-compound-interest/)
- [Best Ways to Start Saving for College](https://www.incharge.org/financial-literacy/budgeting-saving/save-for-college/)
- [Saving and Investing for Life](https://www.incharge.org/financial-literacy/budgeting-saving/saving-and-investing-for-life/)
- [How To Save for Retirement](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-for-retirement/)
- [Average Retirement Savings by Age](https://www.incharge.org/financial-literacy/budgeting-saving/average-retirement-savings-by-age/)
- [How To Be Debt Free by 50](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-be-debt-free-by-50/)
- [How to Retire Debt Free](https://www.incharge.org/financial-literacy/budgeting-saving/debt-free-retirement/)
- [How Much Will I Need to Save For Retirement?](https://www.incharge.org/financial-literacy/budgeting-saving/how-much-will-i-need-to-save-for-retirement/)
- [How Much Do I Need in My 401(k) to Retire?](https://www.incharge.org/financial-literacy/budgeting-saving/how-much-should-i-have-in-my-401k/)
- [How to Lower a Cell Phone Bill](https://www.incharge.org/debt-relief/how-to-lower-cell-phone-bill/)
- [Top 5 Budget Apps](https://www.incharge.org/tools-resources/best-budget-apps/)
- [Cash Advance Apps for Money Before Payday](https://www.incharge.org/financial-literacy/budgeting-saving/best-cash-advance-apps/)
- [American Budgeting and Saving Behavior](https://www.incharge.org/financial-literacy/data/american-budgeting-saving-behavior/)
- [Social Security Retirement Income Calculator](https://www.incharge.org/financial-literacy/budgeting-saving/social-security-retirement-income-estimator/)
- [How to Save Money in Your Budget and Grow Your Income](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-in-your-budget/)
- [7 Reasons You Should Budget](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-benefits/)
- [How Are 529 Plans Taxed?](https://www.incharge.org/financial-literacy/budgeting-saving/how-are-529-plans-taxed/)
- [How Much Should You Save From Each Paycheck?](https://www.incharge.org/financial-literacy/budgeting-saving/how-much-to-save-each-paycheck/)
- [How To Use the Envelope Budgeting System](https://www.incharge.org/financial-literacy/budgeting-saving/envelope-budget-system/)
- [Average Monthly Expenses by Household Size](https://www.incharge.org/financial-literacy/budgeting-saving/average-monthly-expenses/)
- [How to Stick to a Budget](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-stick-to-budget/)
- [Budgeting Tips for Young Adults](https://www.incharge.org/financial-literacy/budgeting-saving/tips-for-young-adults/)
- [Budgeting for Single Parents](https://www.incharge.org/financial-literacy/budgeting-saving/single-parents/)
- [Do You Pay Taxes on a High-Yield Savings Account?](https://www.incharge.org/financial-literacy/budgeting-saving/do-you-pay-taxes-on-high-yield-savings-account/)
- [How Do High Yield Savings Account Work?](https://www.incharge.org/financial-literacy/budgeting-saving/high-yield-savings-account/)
- [How to Budget Money on a Low Income](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-budget-money-on-low-income/)
- [Budgeting Tips for Families](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
Budgeting Menu
- [Budgeting & Saving](https://www.incharge.org/financial-literacy/budgeting-saving/)
- [How to Make a Monthly Budget](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-make-a-budget/)
- [How To Set Financial Goals](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-set-financial-goals/)
- [Emergency Funds](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-an-emergency-fund/)
- [10 Ways to Save Money on Rent Payments](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-rent/)
- [How to Reduce Monthly Mortgage Payments](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-reduce-mortgage-rent-payments/)
- [How to Save Money on Gas](https://www.incharge.org/financial-literacy/budgeting-saving/gas-saving-tips/)
- [How to Save Money on Internet: Free and Low Cost Broadband](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-get-cheap-internet/)
- [Cheap Cell Phone Contracts](https://www.incharge.org/financial-literacy/budgeting-saving/cheap-cell-phone-plans/)
- [How to Save Money on Utilities](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-electric-gas-water-bill/)
- [How to Save Money on Air Conditioning](https://www.incharge.org/financial-literacy/budgeting-saving/save-money-on-air-conditioning/)
- [How To Reduce Your Gas Bill](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-lower-your-winter-gas-bill/)
- [Winter Energy Saving Tips](https://www.incharge.org/financial-literacy/budgeting-saving/winter-energy-saving-tips/)
- [How To Save On Heating Bills](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-on-heating-bill/)
- [How to Save Money on Water Bills](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-on-water-bill/)
- [10 Tips to Save on Heating Costs in Your Apartment](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-on-heating-costs-in-an-apartment/)
- [How To Save Money On Homeownerâs Insurance](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-homeowners-insurance/)
- [Teaching Kids About Money](https://www.incharge.org/financial-literacy/budgeting-saving/teach-kids-to-save/)
- [How To Cut Your Expenses](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-cut-your-expenses/)
- [How To Save Money on Food at Restaurants and the Grocery Store](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-food-at-restaurants-and-the-grocery-store/)
- [14 Tips To Save More On Groceries](https://www.incharge.org/financial-literacy/budgeting-saving/saving-money-at-the-grocery-store/)
- [How to Make a Money Saving Meal Plan](https://www.incharge.org/financial-literacy/budgeting-saving/money-saving-meal-plan/)
- [Budgeting for Couples](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-for-couples/)
- [Budgeting for a Baby](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-for-a-baby/)
- [How To Automate Your Savings](https://www.incharge.org/financial-literacy/budgeting-saving/making-saving-automatic/)
- [Find The Best Bank For You](https://www.incharge.org/financial-literacy/budgeting-saving/find-a-no-fee-bank-account/)
- [Opening a Free Savings Account With No Minimum Balance](https://www.incharge.org/financial-literacy/budgeting-saving/free-savings-account-no-minimum-balance/)
- [The 50/30/20 Rule for Budgeting](https://www.incharge.org/financial-literacy/budgeting-saving/50-30-20-rule/)
- [Introduction to Compound Interest](https://www.incharge.org/financial-literacy/budgeting-saving/introduction-to-compound-interest/)
- [Best Ways to Start Saving for College](https://www.incharge.org/financial-literacy/budgeting-saving/save-for-college/)
- [Saving and Investing for Life](https://www.incharge.org/financial-literacy/budgeting-saving/saving-and-investing-for-life/)
- [How To Save for Retirement](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-for-retirement/)
- [Average Retirement Savings by Age](https://www.incharge.org/financial-literacy/budgeting-saving/average-retirement-savings-by-age/)
- [How To Be Debt Free by 50](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-be-debt-free-by-50/)
- [How to Retire Debt Free](https://www.incharge.org/financial-literacy/budgeting-saving/debt-free-retirement/)
- [How Much Will I Need to Save For Retirement?](https://www.incharge.org/financial-literacy/budgeting-saving/how-much-will-i-need-to-save-for-retirement/)
- [How Much Do I Need in My 401(k) to Retire?](https://www.incharge.org/financial-literacy/budgeting-saving/how-much-should-i-have-in-my-401k/)
- [How to Lower a Cell Phone Bill](https://www.incharge.org/debt-relief/how-to-lower-cell-phone-bill/)
- [Top 5 Budget Apps](https://www.incharge.org/tools-resources/best-budget-apps/)
- [Cash Advance Apps for Money Before Payday](https://www.incharge.org/financial-literacy/budgeting-saving/best-cash-advance-apps/)
- [American Budgeting and Saving Behavior](https://www.incharge.org/financial-literacy/data/american-budgeting-saving-behavior/)
- [Social Security Retirement Income Calculator](https://www.incharge.org/financial-literacy/budgeting-saving/social-security-retirement-income-estimator/)
- [How to Save Money in Your Budget and Grow Your Income](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-in-your-budget/)
- [7 Reasons You Should Budget](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-benefits/)
- [How Are 529 Plans Taxed?](https://www.incharge.org/financial-literacy/budgeting-saving/how-are-529-plans-taxed/)
- [How Much Should You Save From Each Paycheck?](https://www.incharge.org/financial-literacy/budgeting-saving/how-much-to-save-each-paycheck/)
- [How To Use the Envelope Budgeting System](https://www.incharge.org/financial-literacy/budgeting-saving/envelope-budget-system/)
- [Average Monthly Expenses by Household Size](https://www.incharge.org/financial-literacy/budgeting-saving/average-monthly-expenses/)
- [How to Stick to a Budget](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-stick-to-budget/)
- [Budgeting Tips for Young Adults](https://www.incharge.org/financial-literacy/budgeting-saving/tips-for-young-adults/)
- [Budgeting for Single Parents](https://www.incharge.org/financial-literacy/budgeting-saving/single-parents/)
- [Do You Pay Taxes on a High-Yield Savings Account?](https://www.incharge.org/financial-literacy/budgeting-saving/do-you-pay-taxes-on-high-yield-savings-account/)
- [How Do High Yield Savings Account Work?](https://www.incharge.org/financial-literacy/budgeting-saving/high-yield-savings-account/)
- [How to Budget Money on a Low Income](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-budget-money-on-low-income/)
- [Budgeting Tips for Families](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
Decorative svg added to top
About The Author
### [Maureen Milliken](https://www.incharge.org/blog/author/mmilliken/)
Maureen Milliken is a long-time journalist who specializes in business, the economy and consumer finances, with a focus on information that people can use and making economic issues relatable to daily life. She was named Columnist of the Year by the New Hampshire Press Association for her consumer-focused "It's Your Money" column.
## Posts navigation
[â How Do High Yield Savings Account Work?](https://www.incharge.org/financial-literacy/budgeting-saving/high-yield-savings-account/)
[How to Budget Money on a Low Income â](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-budget-money-on-low-income/)
#### Sources:
1. N.A. (2024, January 8) Question of the Day: What percentage of Americans have reported spending beyond their monthly budget? Retrieved from <https://www.ngpf.org/blog/question-of-the-day/question-of-the-day-what-percent-of-americans-have-reported-spending-beyond-their-monthly-budget/>
2. N.A. (ND) Making a Budget: What to Know. Retrieved from <https://consumer.gov/managing-your-money/making-budget#what-to-know>
3. Martinelli, K. (ND) Talking to Kids About Money. Retrieved from <https://childmind.org/article/talking-kids-money/>
## Too Much Debt? Consolidate Debt in Minutes
[Become Debt Free](https://www.incharge.org/debt-help/)
### FROM OUR BLOG
## [CEO Loretta Roney Featured in WVNS-TV News Segment](https://www.incharge.org/blog/ceo-loretta-roney-wvns-tv-segment-interest-rate-cap/ "CEO Loretta Roney Featured in WVNS-TV News Segment")
January 21, 2026
## [Advantages of Credit Unions](https://www.incharge.org/blog/pros-and-cons-of-credit-unions/ "Advantages of Credit Unions")
November 19, 2025
## [CEO Loretta Roney Offers Expert Insights in U.S. News Feature](https://www.incharge.org/blog/ceo-loretta-roney-offers-expert-insights-in-us-news-feature/ "CEO Loretta Roney Offers Expert Insights in U.S.âŻNews Feature")
August 8, 2025
### Award Winning Service
### JOIN OUR COMMUNITY
[Join InCharge.org on Facebook](https://www.facebook.com/incharge.debt.solutions/)
[Join InCharge.org on LinkedIn](https://www.linkedin.com/company/incharge-debt-solutions)
### MORE LINKS
[Client Login](https://help.incharge.org/)
[State Disclosures](https://www.incharge.org/state-disclosures/)
[Terms & Conditions of Use](https://www.incharge.org/terms-and-conditions/)
[Privacy Policy](https://www.incharge.org/privacy/)
[Contact Us](https://www.incharge.org/contact/)
[About Us](https://www.incharge.org/about-us/)
[Careers](https://www.incharge.org/about-us/careers/)
### Affiliations
[](https://www.bbb.org/central-florida/business-reviews/credit-and-debt-counseling/incharge-debt-solutions-in-orlando-fl-24000449#sealclick)[](https://www.nfcc.org/)[](https://coanet.org/)
© 2000-2026 InCharge Debt Solutions. All Rights Reserved. \| 5750 Major Blvd, Suite 300 Orlando, FL 32819 \| 501(c)(3) Non-profit Credit Counseling Organization. \| We do not lend money.
Manage your privacy
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions. View Our [Privacy Policy](https://www.incharge.org/privacy/).
Functional
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
- [Manage options](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Manage services](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Manage {vendor\_count} vendors](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [Read more about these purposes](https://cookiedatabase.org/tcf/purposes/)
Accept
Reject
Manage options
Save preferences
[Manage options](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [{title}](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [{title}](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
- [{title}](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-tips-for-families/)
Manage consent
 |
| Readable Markdown | Managing money seems tougher than ever these days. Rising prices, skyrocketing interest rates, credit card balances that never get smaller ⊠itâs a full-time battle for most of us and if youâre managing a family, it may seem impossible.
Sitting down to do a budget? Who has the time? And if you have no money, what good is a budget anyway, right?
The reality is that if you want to successfully manage your money, a monthly household budget is essential to get your familyâs money challenges on track, both immediate ones and long-term. Budgeting will help you manage money better, ease stress â both financial and physical â pay bills you may be avoiding, pay down debt, and even save for the future and emergencies.
A budget is simply a way to keep track of the money that comes in and managing how it goes out. Including the kids in the budget discussion will help make it work.
Letâs break it down into 10 budgeting tips for families that will help you build and maintain a strong financial foundation for you and your kids.
## 1\. Create a Family Budget
All budgets start with a list of monthly income and expenses. Itâs a plan for how that income will be used to pay the bills, as well as achieve future goals. [How to make a budget](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-make-a-budget/), though, is up to you. You can use software, an app, a spreadsheet, or just a legal pad and a pen. Thereâs no wrong way. The best monthly budget method is the one that youâll stick to.
A recent survey found that 84% of Americans who budget said they regularly overspend. If youâre spending more than what youâre taking in, the budget isnât working.
Be sure that you have all the financial information you need, itâs accurate, and that youâre realistic when you set budgeting goals. Youâre not chiseling your budget in stone. Assessing it monthly and making changes as needed is essential, as long as your goals are still being met.
**To get started creating a family budget:**
- Write down total income, including all money sources that will contribute to paying the household expenses. If your income is irregular, find the monthly average and use that for a starting point.
- Write down all household monthly expenses. Go through your checking account and round up your bills to be sure everything is included. Some expenses are fixed (the same every month), such as mortgage or rent, vehicle payment, insurance and cable. Others fluctuate â groceries, gas, credit card payments, electric bill, heating oil. Find an average by going through six months worth of each expense, adding them up and dividing by six (or whatever number of months youâve gathered).
- Subtract expenses from income. If you come up with zero or less, that means you must reduce expenses. (Weâll discuss that later.)
- Create a budget document that lists the income and each expense. Make non-fixed expenses, like food and gas, something realistic that you can stick to. Include money for savings. When deciding how much money to put toward items, be sure that youâre accounting for all of your familyâs monthly needs, as well as future goals.
That, in simple form, is your budget.
The digital world makes it easy to track spending and expenses. Your online bank account will show what you used your debit card for and what bills were taken out of your account. If youâre a member of a supermarket rewards program, your specific purchases may be listed in your online account.
Your bank account will also show your income deposits. If you have an online payroll account through your employer, thatâs another way to track income, as well as deductions and your retirement account deposits.
There are a lot of resources available online to help you budget. The federal government webpage [mymoney.gov](https://www.mymoney.gov/tools) offers budgeting tools and resources. Your local bank or credit union may have a similar page.
There are many budgeting apps, websites and software programs available. If you use one, be sure itâs free, it helps you plan spending as well as tracking it, and that itâs easy for the adults in the family to access and use. Be sure to check the reviews, particularly the one-star ones, to make sure the app will work for you.
Many online budgeting tools require that you input all of your accounts and link to them. If you use one, be sure youâre diligent in the setup, and include all of your accounts, or you wonât get accurate information.
Managing your money and building a solid foundation for yourself and your family is one of the most important things you can do. Even though creating a budget may seem like a lot of work, itâs worth the effort.
. You may want to shield your kids from the harsh realities of the familyâs financial situation, but getting the kids involved is an important aspect of family budgeting. They donât have to know all the grisly details, but experts say that the earlier you start talking to kids about money and spending, the better habits theyâll build. Another benefit is that if your children feel that theyâre part of the decision-making process. When given agency and a mission, kids generally jump on board and might be the best budget advocates in the house.
## 2\. Track Your Spending
Tracking spending is essential to sticking to your family budget. Itâs easy to ignore bad spending habits when youâre not paying attention. Once you are, you can identify patterns and make adjustments.
As you track spending and manage money better, youâll learn to control your money, rather than letting it control you.
This is another area where the digital world makes things easy. [Budgeting apps](https://www.incharge.org/tools-resources/best-budget-apps/) are great for tracking. Depending on the app, you may even get notifications when you exceed a certain amount in a category. Keep in mind that some apps come with fees or subscription costs.
You can also use a spreadsheet, find free budget workbooks and tools online and write down spending in an online doc. Or, just use a pencil and paper and cross off bills as theyâre paid, or write down expenditures, subtracting them from the balance.
**Some tips to track spending are:**
- Set up auto payment for as many bills as you can. Set them up to automatically come out of your bank account on the same day (the first of the month, for instance), so bills arenât coming out throughout the month. Just be sure the moneyâs in the bank on bill-paying day.
- Set up a separate checking account, with its own debit card, for groceries, or groceries and gas. These can be the biggest budgeting challenges every month. Having a separate account makes it easier to keep an eye on spending.
- Join a grocery and/or gas rewards program. Many of these have apps that show every purchase. You may be surprised at your spending. (âI bought a \$5.99 bag of M\&Ms three times last month? Holy cow!â)
- Limit discretionary spending like grocery trips, gas fill-ups and entertainment or eating out to certain days of the week, or even one day.
No matter what tracking method you use, get the kids involved. Maybe youâve budgeted a certain amount a month for fast food. Write the total at the top of a whiteboard. After a fast-food trip, have the kids do the math (or help them do it), and record what was spent and how much is left. Discussing how to use the money (Takeout pizza twice a month? Expensive wings once a month?) will teach them how to make spending decisions.
## 3\. Prioritize Essential Expenses
Keeping a roof over your familyâs head, the lights on and food on the table come first when budgeting. Prioritizing essential expenses is key to creating a budget that will keep you afloat.
Your budget should be clear on which expenses are âneedsâ and which are âwants.â (This is a great discussion to have with the kids.)
Every family has four basic needs: housing, food, transportation and utilities that keep the home livable (electricity, water, heat, etc.) Wi-Fi has become a necessity for most people, both for work and for engaging with services or the community.
Wants are expenses that support those needs. Cable service may be a utility, but you could live without it if you had to. Eating out, travel, a beer after work â many of the things you take for granted as âneedsâ are actually âwants.â
Your budget may mean tough choices in order to pay the rent or [utility bills](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-money-on-electric-gas-water-bill/) some months. Thatâs why sticking to a budget is important. Donât take money from needs to pay for wants, or you may not have enough for groceries or the rent.
Paying necessary expenses immediately ensures priorities are covered. Having a separate bank account for necessary bills is also a good way to make sure they get paid.
If you are scrambling to pay necessary, priority bills, itâs time to sit down as a family and discuss how to cut expenses.
## 4\. Cut Down on Unnecessary Costs
Cutting down on unnecessary costs is a hard discussion, but itâs another opportunity to involve the entire family. When people feel theyâre part of the decision-making, itâs easier to let things go. Some decisions, though, will be up to the adults.
The first step may be to revisit the âwantsâ and âneedsâ discussion and see if there is room to eliminate more.
If you havenât already, do a thorough audit of subscriptions and get rid of ones you donât use or that you can live without.
Electricity bills can really spike in the heat of summer or cold of winter. If you live in a hot region, see if you can live with less AC, and cut down on it. If you live in a cold region, see if you can turn down the thermostat and bundle up. Drying clothes on a line can reduce an electric bill enormously. Making sure your refrigerator is operating correctly can also save money.
Shop around for a grocery store that has a rewards program. Some give discounts or even money back when you buy store brands, and also provide coupons digitally. The Mitchell family, who live in Maine, are members of their supermarket chainâs rewards program and every quarter they get cash back for buying store brands.
Rebecca Mitchell, who cares for a teenager and two elderly parents, said she gets about \$30-\$40 back each quarter from her supermarket rewards program, with the highest amount \$58. âWhen I get the rewards, it really helps with that weekâs grocery bill,â she said. âIt may not seem like a lot, but it makes a difference. It puts a little slack in the budget.â
Grocery spending can be the biggest challenge for a family, and the hardest place to cut costs. If your rewards program lists specific purchases, go through those with the kids and discuss changes, or meals you can make, to reduce what you spend.
Listing the things you didnât spend money on and how much you saved can be a great way to see the benefits of your sacrifice. For instance, letâs say you enjoy a \$3.75 vanilla latte three days a week at the local coffee shop. Instead of buying the coffee, make a chart for it and write down \$3.75 for every day you wouldâve bought one but didnât. If that was 12 days in the month, youâve saved \$45. Seeing that in black and white may be the motivation you need.
There are a lot of ways for families to cut costs and still have fun. Making meals at home and limiting snacks to a special day of the week can reduce grocery expenses. Going for walks, or to the playground, instead of the movies or a fast-food restaurant, adds quality time as well as money to your budget. Jigsaw puzzles and board games are fun, and also encourage much more interaction than many activities that cost money. Libraries, even in small towns, have movies and games to lend for free, as well as free programs for kids and adults.
## 5\. Set Financial Goals
The family budget isnât just about paying monthly bills and keeping a lid on spending. Itâs also about [financial goals](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-set-financial-goals/), both short-term and long-term.
Every family budget should prioritize an [emergency fund](https://www.incharge.org/financial-literacy/budgeting-saving/how-to-save-an-emergency-fund/). The rule of thumb is to save 3-6 months of expenses. Donât panic, though, if you canât do that immediately. Every little bit helps. Budget an amount every month, whether itâs \$25 or \$250, or whatever you can afford. Deposit it, and donât touch it.
[Savings](https://www.incharge.org/financial-literacy/budgeting-saving/) for other purposes are also important. Goals may be a vacation, retirement, a college fund for the kids, money on hand for a new car when the clunker dies, or a down payment for a house. Paying down debt may also be a goal (and should be if you have a lot of it).
How will you achieve these goals within your budget? Whatâs the timeline? Can the amount and timeline be adjusted in the future if your financial situation changes?
The adults in the family should discuss goals and where they are on the priority list. Reaching those goals should be realistic and manageable. There are many formulas for saving, including putting a percentage of your income into savings. Donât feel that you have to follow someone elseâs rigid formula. Figuring out what works best for you within your budget is the best way to stay on track.
If the budget allows it, squeeze in something fun for the kids that they can contribute to as a way to get them involved in budgeting and saving. Maybe itâs for a vacation, a specific purchase, or just a âfun fundâ that they can discuss what it will be spent on as it grows. They can learn about delaying gratification, and comparing less expensive wants to expensive ones. Create a chart they can update as their funds increase.
## 6\. Involve the Whole Family
Weâve mentioned ways to involve the kids in the family budgeting process. Donât discount the importance of it. No matter their age, including children has many benefits.
From a practical standpoint, it encourages cooperation. Theyâll be more willing to make sacrifices if they are included in the decisions.
The bigger benefit is that [teaching kids](https://www.incharge.org/financial-literacy/budgeting-saving/teach-kids-to-save/) about money will build financial literacy that instills good spending and saving habits that will benefit them throughout their life.
Some ways to get the family involved in the household budget that will also build good habits and contribute to financial literacy:
- Hold monthly budget meetings. Always have some positives to discuss, even if tough decisions are being made, particularly if the kids are young. The monthâs wins can be a great topic. Did a child help pick out a healthy, cheaper snack at the store? Agree to give up a fast-food outing in favor of making a meal at home?
- Seek input from the kids and listen to what they have to say. If you donât agree with them, have a respectful discussion about it.
- Have kids help with the grocery shopping. Bring them with you to the store and discuss what youâre buying and why. Have them help with purchase choices from the perspective of good financial decisions.
- Give younger kids an allowance if you can fit it into the budget. Agree on a portion that will go into a savings account. Bring them to the bank and let them deposit the money themselves and have them track the money as it grows. Discuss how theyâll spend what they
- Older kids can contribute to expenses, or their college fund, if theyâre employed. Or they can pay for their own clothes and entertainment. Find ways to give them some say in some of the householdâs decisions if theyâre contributing.
- Be a role model for mindful spending. Have a âno impulse buyâ rule for everyone in the household. Instead of making a spontaneous purchase, have a âcooling offâ period (3-7 days) during which the pros and cons can be weighed.
## 7\. Use Cash for Discretionary Spending
Weâve talked a lot about how much easier the digital world has made budgeting. But thereâs one trick that goes back to pre-digital days that can be effective, both practically and psychologically, when it comes to curbing spending â use cash for discretionary spending. When you have to count out cash, rather than whip out a card, you see the actual money leave your fingers. Itâs easy when using a card to ignore the fact thereâs a limited amount of money at the other end. If itâs a credit card, that can be financially disastrous.
Using cash forces you to acknowledge your spending in real time. Spending becomes mindful, rather than mindless.
One budgeting trick from the olden days has gained a new following: the [cash envelope system](https://www.incharge.org/financial-literacy/budgeting-saving/envelope-budget-system/).
**The cash envelope system is simple:**
- Label separate envelopes for each discretionary spending category: food, gas, eating out, clothes, etc.
- Put the monthly budgeted amount of cash in each envelope.
- Spend for the category out of the envelope, writing on it how much you spent and what you spent it on.
The method may be hard to get the hang of if youâve used credit cards most of your life. Be sure to have the envelope with you when you need it. If you donât have it, donât make the purchase until you do, if possible.
There are envelope apps that serve the same purpose, but using real envelopes and real cash is the key to paying attention to your money and spending. If you donât have enough money, or too much, in an envelope at the end of the month, adjust your budget for those categories.
## 8\. Automate Savings
While old-school cash is a great way to curb spending, diving into the digital age is the best way to stay on track when saving money.
Having money go directly from your paycheck to a savings account, before you even know itâs there, means you donât have to make the decision yourself. This helps you to be consistent and stay on track.
There are a lot of ways to engage in [automatic savings](https://www.incharge.org/financial-literacy/budgeting-saving/making-saving-automatic/).
If your paycheck is direct deposit at work, have a portion go into a savings account. You can also set up an automatic transfer from your checking account to savings. With most banks, it takes just seconds online if both accounts are at the same bank.
There are also apps that help you save by rounding up purchases to the next dollar and putting the difference into a savings account.
Whatever automatic savings method you choose, make sure itâs âset it and forget it.â In other words, once youâve set up the account, you donât have to do anything but save every month.
It may be hard if youâre living on a tight budget to not dip into savings. If this is an issue, there are many ways to make savings less accessible. For instance, open an account at a bank where you donât have any other accounts, donât link it to your regular bank, and donât get a debit card. This forces you to physically go to the bank to make withdrawals. (Be sure that your emergency fund is an account you can access when needed.)
Once youâve accumulated some savings, you may want to put it into a certificate of deposit account. CD accounts donât allow withdrawals for a certain amount of time, usually 6-12 months. When the term ends, you can roll it into another CD. Another benefit is that they have higher interest than a traditional savings account.
Your bank or credit union may also have specialty savings accounts where you can sock away money for retirement, college, or a home down payment. Many also have âChristmas Clubs,â or similar programs, where you put a specific amount in every week, or month, and it becomes available in December.
However you save, check fees and make sure the account serves your purposes before you set it up. Then forget it.
## 9\. Plan for Irregular Expenses
No matter how carefully you budget, there are going to be surprises that will cost money. Your family budget must make room for irregular expenses like car repairs, [medical bills](https://www.incharge.org/debt-relief/debt-consolidation/medical-debt/), your sisterâs destination wedding, holidays, birthdays, or anything thatâs not an emergency, but not something thatâs a regular monthly expense.
Some of these expenses are truly unexpected, some are simply irregular. Either way, you can plan for them. Planning and anticipating irregular expenses will help you navigate them without a big budget hit.
Your budget should include an unexpected expenses account that is separate from your emergency account. It may stretch your money to its limits to have one more savings account, but it will pay off when you need the money.
Another savings account isnât the only way to prepare for irregular expenses. You know that youâll likely spend more during the holidays, or for someoneâs birthday. Your sister did give you notice about her wedding. If you live in a northern state, in October youâre going to need \$1,000 for snow tires.
You know itâs coming, so adjust your budget in advance to accommodate it. Understand your budget and identify flexibilities, so you can plan ahead within the budget to cover irregular expenses. This may mean cutting expenses for a few months, or temporarily recalibrating amounts going into savings or paying down debt. Since itâs your unique budget, you know best how to make those temporary adjustments in ways that wonât have a negative impact on priorities or other bills.
## 10\. Review and Adjust Regularly
Your family budget is not chiseled in stone. Review it regularly and make adjustments when needed, always with your familyâs needs, priorities and goals in mind.
Things change, no matter the size of a family. Income decreases or increases, expenses change. Family size may change, too. If youâre successful at paying down credit cards, you may have more money for savings, or to get a car that doesnât require repairs every other week.
A monthly family budget meeting will help you manage changes, stay on track and keep the kids on message. The adults in the family should do an overall assessment periodically, for instance quarterly. Schedule budget meetings and stick to them. Itâs easy to let life get in the way, but few things are as important as your familyâs financial foundation.
## Closing the Budget Loop
Family life is a busy life. Donât let it get in the way of creating a budget, sticking to it, and staying on top of changes.
Itâs easy to lose track of where the money is going. Remember the survey at the beginning that found 84% of Americans with a budget overspend? It also found that 44% use a credit card to cover additional expenses. Maintaining high credit card balances can skew a budget, if not blow it up.
There is no downside to having a monthly family budget. The work you put in will pay off in countless ways.
**Some of the biggest [benefits of budgeting](https://www.incharge.org/financial-literacy/budgeting-saving/budgeting-benefits/) are:**
- A clear picture of how your money is being spent
- Control of spending
- Identifying and working toward goals
- Identifying financial challenges and strategizing on overcoming them
- Easing household stress and anxiety
- Opening discussions on money, values and goals
- Building a firm financial foundation for kids
Donât wait to create a family budget. You can start on these family budgeting tips today. Gather your financial information, go over it with the household adult partners, then hold a family meeting and start budgeting. The sooner you do it, the sooner you will see the rewards. |
| Shard | 43 (laksa) |
| Root Hash | 4920434494482155843 |
| Unparsed URL | org,incharge!www,/financial-literacy/budgeting-saving/budgeting-tips-for-families/ s443 |