Last Updated on August 31, 2022
Contents
Learn How To Save Money With A Family Of 6
Do you live with a large family in a big property? It must be great having a lot of siblings and family members to spend the holidays with and share your good and bad experiences. Having many family members is excellent for support and can benefit your physical and mental health. Despite all the good stuff, having a large family also means spending more money.
Let’s say you are a family of six – you, your partner, and four kids. You already know it costs a lot and you must be wondering how to save money with a family of 6. Lucky for you, it is not impossible. With the proper planning and a smart budget, you can make it happen and save money. Read on to find the best tips for saving money with a large family.
What Are the Costs of Larger Families?
Before we proceed with tips to save money with a large family, it is essential to know the expenses of a large family. They are determined by various factors, like:
- Age of the kids
- Where you live
- Overall income
Based on that, the USDA tracks the cost of raising a child. For example, a middle-income family spends $12,980 per child every year. If you multiply that number by the number of children you have, you will get the cost of a larger family. Let’s say you have 3 children, your budget would look like this:
Children | Cost per year |
Child 1 | $12,980 |
Child 2 | $12,980 |
Child 3 | $12,980 |
Total: $38,940 |
The chart shows each child costing the same amount per year, however, many families spend a little bit less on each child. You should consider these costs and more:
- Food
- School
- Clothes
- Higher education
Now imagine if you also want to save money for emergencies. With larger families, that can be challenging for sure. It could be difficult for you if you are the kind of person who can’t save money very easily. If you are in debt, you will find saving money with a large family more challenging since you might need to focus on fixing your credit score.
Here is an example of how a larger middle-income family spends its yearly budget:
Category | Percent | Total Budget: $38,940 |
Housing | 29% | $11,292.60 |
Food | 18% | $7,009.20 |
Education | 16% | $6,230.40 |
Transportation | 15% | $5,841 |
Healthcare | 9% | $3,504.60 |
Clothes | 6% | $2,336.40 |
Other costs | 7% | $2,725.80 |
Now you can see that having a big family costs money and you will probably have to make sacrifices. For example, you might not be able to go out very often or afford to buy something that’s a want rather than a need. That should not be a problem if you love having a big family and work to establish a budget that will cover your expenses.
Set Financial Goals And Make A Budget
To save money with a big family, you must set financial priorities and make an efficient budget. Your first step is sitting down with your partner and discussing the essential costs. Before making the budget, setting financial goals and knowing why you are making the effort is crucial.
Make sure to divide the goals into short-term and long-term. For example, a short-term plan could be your essential costs and any upcoming vacation as a family. Then your long-term goals could be saving for your child’s college education or paying off debts.
After you establish that, you can focus on making the budget. It is better to have everything written down so you remember it and have more motivation to stick with it. Make sure to leave a flexible space in your budget since a big family can come with higher unexpected costs. Finally, when you make the budget, stick to it and try not to overspend. The following methods would help you with that:
Focus on the essential expenses first
When making your budget with your family, talk about what is important and what is not. Your priority should be the essential costs like:
- Food
- Bills
- Clothes
- Transportation
- Rent or Mortgage
You can save a lot on food. Sit down with your family each weekend and make a weekly plan on what you are going to eat. Plan the meals and then shop for the necessary ingredients. Check to see what is on sale that week and plan according to that. That way, you won’t waste money on non-essential food.
After including all this, you can see if there is room for pleasures like vacations, dining out, and more. Remember to try to keep everyone happy, since it can contribute to the family’s well-being. If you need to make room for other costs, like sports classes for kids, look to cut on subscriptions or other non-essential expenses.
The most important thing when making the budget is to leave room for other costs. You can do that by rounding up the prices. For example, if your bills are $650 per month, you can round up to $700. Then, you can use the extra $50 bucks for your kids’ needs. If your rent is $900, you can list it in your budget as $1,000, leaving you with $100 extra to use for your kids.
Keep It Simple on Holidays and Birthdays
Having a large family can be fun for holidays and birthdays. Yet, that means wasting more money for each family member. Instead of buying Christmas gifts for each family member, sit down and talk to them about buying something for the house. It can be something that will benefit each one of you, like buying a TV or a computer. You can explain to your kids that they will also use it for education and fun games.
If they insist on separate presents, you can buy something at a discount or plan the gifts a few months ahead. That way, you can buy them early since many stores tend to increase prices during the holidays.
You can also save on birthdays by keeping them simple yet fun. You do not have to organize something fancy for your kids’ birthday parties. Instead, it can be simple, like inviting their friends over for a pizza, cake, and fun games. Be creative and look up games that do not require items to buy.
Also, you can organize a day at a local site, such as a beach or river, for their birthday. If two of your kids have birthdays on closer dates, you can also arrange one birthday party for both. That way, you will save money on birthday costs.
Reuse Things and Save With DIY
The good thing about having a larger family is that you can reuse their stuff. For example, you can use the clothes of your oldest child for the younger one when they have outgrown them. With that, you are saving money on clothes. If the clothes do not fit your younger child, you can make some changes to refresh them.
Also, use your older children’s toys for the younger ones. Kids love to play, and they usually have fun as long as they have something to play with. Another way to save is to use the school supplies and backpacks for school from your oldest to your youngest kid.
If you have to buy something, give a chance to secondhand. Many stores sell secondhand clothes, shoes, and accessories. You can even exchange some of the old stuff for new. For example, if something does not fit, you can exchange it for a secondhand piece of the same clothing. Another way is to exchange items with your friends that have children.
Trade Your Skills
You can trade your skills for extra bucks if you need to save money when you have a big family. For example, if you are skilled at teaching, writing, hair, and makeup, you can offer those services for money. You can start a side business that might become great and your primary source of income.
You can also research an online gig or freelance project. For example, if you know a second language, you can offer classes online to teach people. There are many sites to find these types of gigs. Likewise, if you are good at photos and visuals, you can also find gigs for design and editing on those sites. That is why it is helpful to know your skills and use them to make more money.
Use Family Budgeting Apps
After making your budget, you can track every expense with some family budgeting apps. They are great for allowing large families to stay organized and track their expenses. Some of the best family budgeting apps are:
- Mint
- Zeta
- HoneyDue
- Daily Budget
Mint is an excellent app if you have a big family. It is a well-known app, and many people choose it because of its accessible features. They also prefer it because the app keeps all accounts in one place, making it more organized for a big family.
Zeta is a newer app and is best for couples starting their financial journey together. It has the option to allow you to share the necessary information with your partner. Besides, Zeta is great because it has an in-app message option. It lets you communicate with your family about critical financial decisions.
HoneyDue is for couples who want to have joint views into accounts. This app does support chat messaging. It is safe and also has a bill reminder so that you can stay on track with your bills.
Daily Budget is an easy and safe app. You won’t have to add your financial accounts and worry about getting your info stolen. This app controls your daily budget and helps you spend money on necessary things.
Frequently Asked Questions (FAQs)
How can you save money fast with a large family?
If you have a large family and want to save money fast, you must focus on making an intelligent budget plan. Then you should follow every step of your plan and be disciplined with your budget. Set fixed spending amounts on each category and try not to go over that amount. If you follow the plan, you should be able to save money faster.
Is having a child expensive?
Yes, having a child can be expensive. It costs more than you can imagine. If you have multiple children, that increases the amount of money. When having a child, you need to think about the associated costs, like:
- Delivering the baby
- Healthcare for your child
- Food and clothes for your child
- School and materials of your child
- Your child’s future expenses
What are the most expensive years to raise a child?
Every year until your child’s independence will cost you money. Of course, when they are babies, the costs are different compared to their teenage years. But for most parents, teenagers are more expensive than infants. For example, on average, parents spend $12,680 on infants and $13,900 on teenagers per year. So you can see from the numbers that children tend to become more expensive when they grow.
What is the best age to have a child?
Financially speaking, the best age to have a baby is in your early 30s. The reason is that babies cost a lot, and in your early 30s, you most likely have a stable job and income. Also, in your 20s, you are able to focus on clearing up your financial situation, such as paying off debt and learning to live within your means. That way, you will be financially prepared when the baby comes.
How can I save money at home with a larger family?
To save money at home, you can start by setting some rules. Inform your children about saving money and practice habits, like:
- Turning off lights
- Buying only what is necessary
- Taking care of their belongings
- Studying more to have a better future
Sources:
Amy Morin, L. C. S. W. (2020, October 11). Want a big family? here’s how much it really costs to raise 5 kids. Verywell Family. Retrieved August 16, 2022, from https://www.verywellfamily.com/how-much-does-it-cost-to-raise-5-or-more-kids-5075170
Bhattarai, A. (2021, October 23). It’s more expensive than ever to raise a child in the U.S. The Washington Post. Retrieved August 16, 2022, from https://www.washingtonpost.com/news/business/wp/2017/01/10/its-more-expensive-than-ever-to-raise-a-child-in-the-u-s/
Couples finance app. Honeydue. (n.d.). Retrieved August 25, 2022, from https://www.honeydue.com/
Daily budget original – iphone and iPad app. Daily Budget. (n.d.). Retrieved August 16, 2022, from https://www.dailybudget.de/
Master money as a team. Zeta. (n.d.). Retrieved August 16, 2022, from https://www.askzeta.com/
The Economist Newspaper. (n.d.). What’s the best age to have a baby? The Economist. Retrieved August 16, 2022, from https://www.economist.com/1843/2017/10/06/whats-the-best-age-to-have-a-baby
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