As parents, it’s important to teach and model smart money habits to teach kids from an early age. By being mindful of our spending, maximizing available benefits and support, and planning carefully for the future, we can set our families on a solid financial footing. Here are five smart money habits every parent should adopt.
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Look into Benefits and Allowances
One of the smartest things parents can do is make sure they are receiving all the financial benefits and allowances available to them. Do your research and see what support you may qualify for – this extra money can make a big difference for your family’s budget. For instance, parents who foster children receive a foster care allowance. This covers the cost of caring for the child. Other benefits to check if you qualify for include child benefit, child tax credits, free school meals and help with childcare costs.
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Use Discount and Cashback Sites
Savvy parents make use of money-saving platforms. These allow you to access discount codes and get cashback when you shop at major retailers. Using these when you buy essentials like groceries, clothing, toys, and other items for your children can lead to impressive savings over time. Setting up alerts and notifications can help you find the best offers. Teaching children to look out for bargains and sales will stand them in good financial stead later in life.
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Cook Economical Family Meals
Eating out or buying ready meals can blow a hole in any family’s food budget. Get into the habit of batch cooking and preparing simple, economical dishes at home. Things like stews, pasta bakes, curries and casseroles can feed a family for several days from inexpensive ingredients. Packed lunches also work out cheaper than school meals. Get the children involved in meal planning and prep as well. Eating in doesn’t have to mean boring food – you can still enjoy delicious family meals on a budget. That is one reason we always meal plan. It helps us to have a plan for dinner so we don’t default to eating out.
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Open Savings Accounts for Children
It’s wise to start saving on behalf of your children as soon as possible. Opening a child’s savings account when they are young lets you pay in small amounts regularly. Watching their savings grow over time will provide a valuable lesson. Choose savings accounts with higher interest rates to make the most of your deposits. When they reach 16 or 18, consider opening a junior ISA they can start managing themselves. Instilling the savings habit early prepares them for responsible money management later on. We started a savings account and a 529 for each of our children when they were born. We contribute regularly to both.
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Have Budgeting Conversations
Talk openly with children about household budgets from a young age. Show them how you plan what percentage of your income goes on different expenses each month. Outline wants versus needs. Give them a small, regular allowance and let them decide what to spend it on. Guide them in setting savings goals. Being transparent about budgeting removes money taboos and helps children understand responsible spending.
Adopting more prudent money habits does not have to mean depriving your children. With some smart planning, bargain hunting and forward-thinking, parents can build financial security for the whole family. Make savings, avoid unnecessary debt, and spend wisely. Teach your kids smart money habits from an early age. Follow this advice for a richer family life in every sense of the word.
