Parent Time

Vicki and Leo Timmer have been on a tight budget ever since the first of their three children was born eight years ago. Since then Leo, a truck driver and at present the sole family wage-earner, has seen his income fluctuate between $22,000 and $32,000. However, the Timmers own their own house in Kitchener, Ontario, two cars, and have no outstanding loans. How do they do it? Carefully.

The cars are both 11 years old, and the house is small (two bedrooms). They just replaced a 43-year-old stove with a "nearly new" 15-year-old model purchased for $50. They don't belong to a gym and they don't have cable. The Timmers have avoided other debts by cutting up their credit cards. "This keeps us from spending money we don't have," says Vicki. "All you really need is one good department-store card (but make sure you pay off the balance in full each month.)

The Timmers are doing what credit counsellors advise their clients to do. They're planning their spending carefully and keeping careful track of both how much money goes in and what goes out.

Sonya Mount, a financial counsellor in Owen Sound, Ontario, says that many people underestimate both what it costs their family to live and how much money they are spending on certain items. "We ask people to keep an income and expense record (every penny) for ten months and then teach them how to use that information, so that they can plan their spending realistically," she says.

Of course, every family's situation is different, and some people's "shoestring" is longer than others', but sooner or later most of us need some budgeting ideas. Here are a few areas to consider.

Food, Glorious Food

Timmer maintains that you can save money on food without compromising on quality. "It can be done," she says. "I buy top sirloin, chicken breast, lean ground beef, and albacore tuna. What I don't buy is packaged convenience foods." Another one of her strategies is to buy in bulk. "It's an absolute must," she says, "Apple-cinnamon Cheerios are a big thing around here, but I'm not going to pay full price. I'll wait until it's on for $2.39 and buy lots."

Beverley Lenio, of Whitby, Ontario, had to cut the weekly grocery bill for her family of three when her family income dropped by almost 50 percent. "Before, we would just go out and buy what we wanted; sometimes we'd overbuy some things and end up throwing them out," she says. "Now I do more cooking from scratch. We plan out exactly what we're going to eat for the week and buy just what we need for that menu."

Ready to Wear

Thornhill, Ontario mom Valerie Ferrier believes in buying ahead. "I bought my infant son two new sets of winter coats and snow pants for $10 a set at an after-Christmas sale in sizes 2X and 3X," she says. Another one of her strategies is to buy neutral colours. "If you are planning, or have, more than one child, try to buy clothing styles and colours that can be passed on. This is especially handy with snowsuits."

Lenio and her husband buy much of their own clothing (as well as their children's) in consignment stores. "Brand-name items sell for as much as 75 percent off, and children's clothes, maternity wear and toys are often in excellent condition," she points out.

Buying resale clothing is an uncomfortable idea for some; many people who would happily accept their nephew's outgrown Oshkoshes would balk at the idea of buying the same item at a consignment store or thrift shop. This is something London, Ontario mom Jackie Windsor struggled with at first. "I didn't want to wear other people's clothing," she says. "I wanted my son in the best clothes that I could afford. Now I buy lots of things in second-hand shops and Rachel wears all Kyle's old stuff, and I don't give it a second thought."

Pocket Money

This is where a great deal of our discretionary spending occurs. We make all kinds of little, almost unconscious, spending decisions each day, like eating lunch in a restaurant vs. brown-bagging it, taking the kids to a movie vs. a hike in the woods (which might be more fun anyway). "Overall, you have to think hard about what is necessary and what isn't," says Vicki Timmer. "One little example - phone services. Things like call waiting are not necessary for most people."

Even when something is necessary, or simply useful, there may be a way to cut down on the expense involved. "We save money by sharing ‘big ticket' items," says Lenio. "For instance, I lent a friend our Exersaucer for her youngest child, while she lent me her side-railing for our toddler's new bed." They also trade off services, like babysitting, with family, friends or even friends of friends.

Before they had Rebecca, the Lenios "gave" each other an allowance which could be spent on anything they wanted. "At one point it was almost $100 a week each, can you believe that?" laughs Lenio. "I used to buy clothes all the time," she recalls. "Now I get $10, he gets $20."

Fun, Fun, Fun

The Lenios have found their local family resource centre to be an economical source of fun. "For a nominal yearly membership fee, we have daily access to the centre, which offers arts and crafts, various play centres, a computer and many more activities. They also have a toy library which saves us from buying too many toys and also lets us "try out" some items we are thinking of buying."

Valerie Ferrier also makes use of local programs. "Where I live, Parks and Rec offers a great lineup of lessons at a reasonable price. In the summer, we spend a lot of time at an outdoor pool which is free."

A New Attitude

A key part of better budgeting has to do with developing a new way of thinking about money. Saving money often means using time. That may lead to tricky decisions, particularly for parents who are employed outside the home. Do you spend your Saturday hanging out laundry and making jam, or do you throw the clothes in the dryer, use store-bought jam and spend the day playing with the kids? Some days you're going to choose convenience over elbow grease, and that's just fine. But, if you're on a tight budget, you may have to squeeze another area of your spending to balance things out. Or you might find that letting one of your kids help you make the jam can be a good way to spend time together.

The basic principle is, what is bought must be paid for (sooner or later) and what is saved on one item can be spent on something else. Vicki Timmer figures that the money she doesn't spend on cable TV pays for the insurance on her house or one of the cars. Purchasing a used car (instead of new) may enable you to rent a cottage next summer. If you stopped going to the doughnut shop every day, you could, Sonya Mount calculates, buy yourself a good coffee-maker, keep yourself stocked with premium coffee and have money left over at the end of a year.

Some people seem to be naturals at careful spending, but for most it's a skill that has to be learned. Jackie Windsor believes it's worth the effort. "I wish I had figured this stuff out ten or 15 ten years ago," she says. "If I had known how thrifty I could be I'd be a millionaire... well... I'd be much better off than I am now."

Resources

The Tightwad Gazette II , by Amy Dacyczyn, Random House of Canada, 1995. Helpful money-saving tips from a mother of six.

June 1997