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5 Smart Budgeting Tips for Busy Parents

Quick tips for making your family's money go further.

5 Smart Budgeting Tips for Busy Parents

Having kids has always been expensive. But with the rising cost of living, simply paying bills and buying groceries can feel like a struggle, let alone keeping growing children in clothes and shoes.

The average cost of raising a child to age 18 in Canada is around $320,000. This breaks down to over $17,000 a year or almost $1,500 a month. In the U.S., the cost is about $230,000, breaking down to $13,000 a year and almost $1100 a month.

It goes without saying (but I’ll say it anyway), smart budgeting isn't just helpful—it's essential. Whether you're a new parent or juggling multiple kids, these five budgeting tips can help you navigate the financial complexities of parenthood and make the most of your family's resources.

The 50/30/20 Rule

The 50/30/20 rule is a simple yet effective budgeting strategy that can help families allocate their income wisely. The concept is straightforward: 50 percent of your income goes toward necessities such as housing, groceries, and utilities, 30 percent is set aside for savings and debt repayment, and 20 percent is allocated to what I call “fun money”. This includes dining out, entertainment, and hobbies.

Admittedly, when you’re a single mom (as I am) and you’re the sole breadwinner in the household, there’s not much left for savings and wants. But as I’ve learned, even putting aside $5 each paycheque comes in handy when you need it, and it adds up quickly.

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Leverage technology

In today’s digital age, managing your family’s budget has never been easier, thanks to budgeting apps designed to simplify the process. Apps like YNAB (You Need A Budget) and PocketGuard allow you to track your spending and set financial goals from your smartphone.

Automation is another key advantage of using technology for budgeting. For example, I’ve automatically linked my chequing and savings accounts so that every time I make a purchase with my debit card, $20 gets automatically transferred into my savings account. If you can imagine, in any given week I can purchase groceries, fill up my car with gas, pick up a Starbucks coffee, stop off at my local pharmacy because toothpaste is on sale, and buy my next read at the bookstore down the street and presto! I’ve just saved $100 thanks to five individual purchases and auto-transfer!

Involve kids in budget discussions

Money management is an invaluable life skill that’s often overlooked. Involve your kids in budget discussions and help them understand the value of money and the importance of making wise financial choices. (A soft skill unfortunately not taught in schools.)

A great way to do this is to discuss your household budget as a family. Explain where the money goes and set financial goals together. Encourage your kids to contribute their ideas on how your family can save money, whether it’s turning off lights to reduce the electricity bill or choosing homemade pizza night over takeout. When you involve them in these decisions, you teach them financial responsibility while fostering a sense of teamwork and shared purpose within the family.

Today my daughter is studying for her CPA (proud momma over here) and I can’t help but wonder if this stems from me involving her in my budgeting decisions while she was growing up.

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Meal plan to reduce food waste and costs

One of the most effective ways to save money on groceries is through meal planning. Take the time to plan your meals for the week to reduce food waste, make healthier choices, and avoid the temptation of expensive—and often unhealthy—takeout.

Start by checking your local grocery store’s weekly sales and planning meals around items that are on sale or in season. Create a shopping list based on your meal plan and you're more likely to avoid impulse buys and ensure you only purchase what you need.

Batch cooking and preparing meals in advance can also save time and money. Speaking from experience, spending a Sunday afternoon making spaghetti sauce for the freezer can be a lifesaver when chaos sets in on a Tuesday.

Get creative with family activities

Having fun as a family doesn’t have to break the bank. Plenty of low-cost activities provide quality time together without straining your budget. For example, you can explore local parks or nature reserves for a day of hiking. Many communities offer free or low-cost events such as outdoor movie nights, farmer’s markets or library story hours that are perfect for a family outing.

You can also get creative at home with activities like a family game night, or a cooking night where everyone pitches in to make a meal. These activities save money and the conversations and laughter create lasting memories. Every Friday night when my kids were young, we would treat ourselves to a picnic on the living room floor while watching a movie. We even drank milk out of fancy wine glasses.

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In today’s challenging economic climate, smart budgeting is essential for maintaining a high quality of life. By incorporating these tips, you can stretch your budget further while providing for your family’s needs and wants.

And remember, the goal isn’t just to save money but to manage it in a way that aligns with your family’s values and priorities. With a bit of planning and creativity, you can make every dollar count all while creating beautiful memories that last a lifetime.

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Mona Andrei is an award-winning humour blogger and author based in Montreal. In her most recent book, SUPERWOMAN: A Funny and Reflective Look at Single Motherhood, she shares her journey as a single mom as well as the stories of other single mothers.

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