How to save money while raising kids? A complete guide: 

Rohan Mathew

As a parent, you want good for your child. But it’s the parents’ responsibility to secure your kids’ financial future. It doesn’t seem very easy to save while raising a family because there are so many avenues where you will have to pay attention. For instance, as a parent, you need to take care of medical, education, food, shelter, and other expenses. So, it becomes difficult to save something for the future in this situation. 

Is raising kids an expensive thing to do?

It is one of the most crucial questions you shouldn’t ignore before planning a kid. If we look at the research of the PEW center, then in 2013, the average size of the families has dropped to 2.6 kids per family. However, it happened due to costs associated with raising kids, and 65% of families approved this. According to the US department of agricultural: 

“The average cost of raising a child through age 17 is $233,610, and it doesn’t include education expenses.”

Besides, in the UK, the cost of raising a kid till age 18 is around 229,251 pounds. Now inflation is at its peak, and parents must adopt intelligent ways to save on day-to-day expenses. So, if you want to give your kids a good life, don’t ignore the savings and financial planning. 

Teach your kids good financial habits: 

We know the primary responsibility of financial management lies with the parents. But the parents can teach their kids good money management habits to make things easier. Here are some habits that you should develop in kids from an early age: 

  • Develop a habit of saving from a young age 
  • Create opportunities where kids can earn money from a young age 
  • Help kids learn innovative money management and spending tips 
  • Teach kids about the investment opportunities 

Above all, teach your kids good money and investment lessons from an early age. Childhood motivation is the crucial thing that remains with the kids throughout their life. In this way, the kids will be able to spend money wisely. 

Tips to save money while raising kids:

Small changes bring a big difference in life over time. Raising kids could be one of the most expensive periods of your life. So, if you want to make it less hectic, follow a financial roadmap. Here are top tips that you can adopt to save money while raising kids: 

Work on preparing a family budget: 

If you want a grip on finances, don’t ignore the importance of a family budget. In this way, you will have an idea about what you can afford. So, the best thing is to look at the bank statement and record the inflow and outflow of the money. Later, identify your fix and variable expenses. Here is the list of expected costs: 

  • Mortgage payments 
  • Rent 
  • Food 
  • Kids nappies, utilities 

However, after preparing a complete list, you can identify the areas where you can cut down costs. When kids are small, you have fewer expenses, but with age, you need to re-evaluate the budget according to the kid’s needs. 

Create a kid’s saving account: 

Many banks and financial institutions offer kids’ savings accounts. The most impressive part of these accounts is that parents can co-own. In this way, you can create a saving habit for kids instead of spending money on useless items. According to the Trevor Stone: 

“Kids saving accounts are the most basic way to save for your children’s future.”

It’s a great way to develop kids’ interest in money management while earning some extra money. However, when the kid’s age, the account turns into a checking account, and the bank issues a debit card. But parents can assist their children with money management as co-owners when they need. 

Save money on clothes: 

You need many clothes when kids are small. So, take a smart move and set aside a specific amount every month to buy clothes. But it’s unnecessary to go for new clothes as it’s expensive. So, here are tips that you can adopt to save money. 

  • Give a thrift store a chance, and most of the time, you can find brand new clothes with tags on them. 
  • You can go for pre-loved clothes. 
  • Don’t forget to check whether you are eligible for help or not, as many schemes provide free uniforms or free clothes. 

So, before investing money in clothes, ask your school if they have any assistance plan where you can apply. 

Research to avoid overspending: 

Research is another essential thing that can save money. So, whether you are buying a small or big item, don’t forget to do research. Apart from this, avoid panic buying, and later it will save money. Besides, stick to the essentials while doing baby shopping. Here is the list of essential items that you can add to your cart: 

  • Baby car seat 
  • Buy a pram 
  • Invest in a baby crib or cot bed 
  • Nappies 
  • Feeding essential 

It’s better to invest in reusable nappies instead of disposable ones. Besides, it’s better to invest in non-branded items instead of branded ones. In addition to this, you can add other baby stuff that matches your family budget. 

Buy in bulk: 

If you are living with kids, then a chunk of income goes in the name of groceries and home expenses. So, it’s a better idea if you buy items in bulk. In this way, you can save a lot of money by getting wholesale discounts. However, you can visit many wholesale shops to compare rates and buy cheaper items. Here are other spending tips that help people in saving money with kids.

  • Cut cost on kids’ toys 
  • Don’t let your kids buy food from outside as it requires a lot of money 
  • Promote low-cost recreational activities in your house 
  • Limit baby’s snacks 
  • Save money in the account of the babysitter 
  • Don’t buy useless gadgets for your kids 
  • Try to keep birthday parties simple 

It’s crucial to keep track of income and expenses. If you are self-employed, then take the help of a paystub generator to create paystubs and to keep track of your income. In addition to this, teach your kids smart investing and spending habits. In this way, they will learn to earn money early. 


It is evident that kids are costly, but most parents think it’s worth spending money on these tiny humans. But consuming more doesn’t guarantee that they will become a better human. Thus, if you want to raise a kid affordably, then learn the ways to spend wisely. So, consider taking advantage of no-cost activities to entertain and raise kids.