7 Tips on Budgeting as a Young Family

Have you found yourself in a situation where juggling the family budget whilst paying off past debts and loans is a struggle? 

Are you crawling the internet, seeking information on money management options such as consumer proposals and repayment plans? 

If so, then you have come to the right place! 

Having a young family means that it can often be hard to keep track of where your money is going. For the most part, your priorities will change when you become a parent, which means that in order to take control of your family’s finances and keep track of all expenses, you will need to change things up a little bit. 

The following 7 tips will help guide you through budgeting as a young family:

Create a Household Budget

The first step when creating a family budget is to figure out your monthly income.  

You can start by looking at your most recent tax return to see how much money you are receiving every month. You can then look at how much money is coming in from any other sources, such as investments or rental properties.

You will need to list all of your monthly household expenses in order to account for your income including heating, electricity and gas. Additional items, needs and wants such as family outings and entertainment, school uniforms and sports activities should also be added to your budget. 

Set Up a Family Savings Account

The next step in budgeting as a young family is to open up a bank account that can be used for all of the money you plan on saving. Make sure you do not use this account to pay your monthly expenses, as it will lead to you being unable to save any extra money every month. 

Every family should have an emergency fund in place in case of unforeseen circumstances that may lead expensive medical treatments or car repairs. Start saving up money by creating a savings account specifically for these emergencies. 

Set Up Automatic Bill Payments

There is nothing worse than forgetting to pay your bills on time and receiving late fees. To avoid this, set up automatic bill payments for all of your monthly expenses such as mortgage and utilities. 

This way, you will never miss a payment and you’ll be able to keep track of how much money is going out every month for household costs.

Budget for Family Recreation

Family recreation costs can quickly add up if not planned in advance. To keep track of expenses such as family trips and weekend outings, try splitting it into different categories such as entertainment, food and clothing prior to the outing. 

When setting the budget, it is important to budget for fun and entertainment so that everyone in the family can enjoy themselves. 

It may also help to add a reminder into your calendar or through a personal finance app that pops up two weeks before the event takes place. 

Only Buy What You Need

One of the biggest factors in creating a successful budget is making sure that you do not spend more than necessary on unnecessary items. This means only buying food and other necessities when there is extra cash in your bank account. 

The less money you spend on groceries and gas for your car, the more money you will have to put towards debt or family savings goals! 

Use a Mobile Budgeting App

You can use a personal finance app to keep track of your spending and bank accounts.  If you are new to budgeting, it can be helpful to use an app that provides up-to-date information on your personal bank account balances. 

It is also common for mobile banking apps to send reminders about upcoming bills so that you do not miss any payments. This way, you will never have any late fees added onto your monthly expenses. 

Open an Account for Your Kids

Before you begin teaching your kids about responsibility, make sure there is plenty of room for them to learn by not letting them access their own accounts until they are old enough or financially responsible enough to handle it properly.   By following these tips, you can create the perfect family budget no matter what your financial situation. 

It can be tough to budget as a young family, but following these simple tips can help make it a little bit easier. By setting up a family savings account, only buying what you need, and taking advantage of automatic bill payments, you can start to create a solid financial foundation for your growing household.