Raising Kids on the Cheap

The following post is by MPFJ staff writer, Laurie Blank.  Laurie is a wife, mother to 4 and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom and to a simpler, more peaceful life.

According to the latest numbers, the average cost to raise a child in the U.S. is just over $245,000. This is how much it costs just up until age 18, not including college costs. Or so the experts say.

But we’re raising our four kids on MUCH less than that. I’d be willing to bet that we spend less than half of the average to raise our kids. So, what’s our secret? Is it really necessary to spend a quarter million dollars to raise a kid?

Here’s how we reign in kid-raising costs and save more money to put toward building our future and our kids’ futures as well.

Keep a Lid on Grocery Costs

The average family of four spends a lot of money on groceries. Whereas the low-cost meal plan for a family of four is said to cost $786 a month, the liberal-cost meal plan for a family of four comes in at $1195 a month.

Our family of six keeps grocery costs to no higher than $450 a month. Here’s how we keep grocery costs low, thereby effectively reducing the amount of money it costs to raise our kids:

• We meal plan. By mapping out a weekly meal plan each week and shopping only according to what’s on the meal planning list, we avoid the rush of take-out meals and restaurant trips that happen because “there’s nothing in the house”.
• We avoid pop, chips and other processed foods. By purchasing mostly whole foods we avoid the costly purchase of pop, chips and the like and save those things for special occasions.
• We avoid random trips to the grocery store. We get what we need for our weekly meal needs, and then stay out of the stores until the next week.
• We cook from scratch. By planning meals that we can make from scratch, we save the extra cost that often comes with processed foods. We make many of our meals on the weekend and freeze them so that we can just pop a meal in the crockpot or oven to make for a quick dinner meal.

Learning to keep grocery costs low goes a long way in reducing the amount of money it costs to raise a child.

Be Choosy About Extracurricular Activities

Too many extracurricular activities can overwhelm your child and your pocketbook. In order to save both time and money, pick 1 or two extracurricular activities per year that your child really loves, and enroll your child in those activities only. By allowing your child to focus on a limited number of activities, you’ll give them the ability to focus on and learn what they truly like and don’t like to do. And you’ll save tens of thousands of dollars in the process.

Be Smart About Clothing Purchases

Yes, it’s important for kids to have name-brand clothing that’s “in”, especially in the junior high and high school years. However, that “in” clothing doesn’t have to break the bank. Work to find quality used clothing for your kids, and to pick one or two expensive items that are important to your child. Older children can be allowed to have more say in what clothing is purchased.

When I entered middle school, my mom started giving us kids a small yearly clothing budget. Whether we wanted to buy one item or a thousand items with that money, the choice was ours. This helped us to think carefully before we bought clothing and to find a balance between fashion and frugality.

Go Easy on the Gadgets

It wasn’t too long ago that I heard someone complain that their child’s $600 iPhone really put a strain on the family finances. Your kid may need a phone, but does he really need a $600 phone? Work to be frugal when deciding on electronic purchases for your kids. Set an affordable and reasonable budget for electronic purchases instead of buying your child “the best of the best”.

Or work out a plan where you pay half of the cost of a gadget but your child has to save up the cost of the other half so that you can spend less and help your child get a first-hand understanding of the value of a dollar.

Don’t Teach Your Child That Money Grows on Trees

Just because your child asks for X dollars a week so that they can have unlimited fun with friends doesn’t mean you have to give it to them. Even the ultra-rich Donald Trump gave his kids a minimal weekly spending allowance.

Assign your kids chores around the house for which they can earn spending money, or set a small weekly spending allowance for them so that they can learn to be choosy about purchases and to live within their means.

Consider Day Care Costs

Working doesn’t just bring in money – it costs money to work as well. Transportation, clothing expenses and oft-expensive lunches out can eat up a good chunk of one’s income. Another thing that can eat up a good chunk of one’s income is daycare expenses.

If daycare, transportation and other work costs are eating up too much of your income, consider having one parent stay home with the kids if it’s possible in order to avoid day care costs.

While staying at home doesn’t work for every family, in some cases it’s truly more cost-effective for one parent to stay home.

What kids need most from their parents isn’t a never-ending stream of cash; they need love, support and healthy boundaries. “The best” for your kids has very little to do with how much money you spend on them. And as a bonus, a financially healthy household will help ensure your child isn’t burdened with supporting you financially as you get older.

How about you all? How have you been able to save money while raising children? What other tips or tricks do you have on the subject?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/calliope/1776265241/