Managing Your Money in a Big Family May 31, 2016My Life, My MoneyOff

Big families are great. They’re full of laughter, love and animated conversations around the dinner table in the evening, but boy, can they be expensive. This is why it’s so important that you manage your money, to avoid not being able to afford the things you really need or falling into debt.

If you’ve been trying to balance the bank account but need a little guidance – after all, the cost of raising a child is estimated to be a whopping $230,000 – then here’s how to manage your money in a big family:

Get rid of the unnecessary expenses. That subscription to the sports channels no one watches, the unnecessary trip to the supermarket where you end up spending $30, the lottery ticket you have a direct debit set up for online… all these things add up and cutting them out of your spending can significantly improve how your finances look.

Get a better deal. From your utility providers to your savings account, it’s important you get the most for your money. It costs nothing to change energy suppliers and you can easily have a chat with your bank about which savings account offers the best rates, allowing you to gain more over time or save money on your bills.

Sort out any debts. Is a credit card bill looming over your head? Or have you fallen into the overdraft? Instead of burying the problem, tackle it head on and prioritize your debts before arranging a way of paying them off monthly. Negotiating with creditors is the best way of doing this. They want their money back so they should work with you to arrange a repayment plan that works for both parties.

Limit extra curricular activities. While you might want your kids to be enrolled in every class that they take a fancy to, to ensure they find something their passionate about, it’s just not affordable. If you have the extra funds allow each child to join something they will stick to, look for classes that offer taster days and take them to these first. Once you’re sure they aren’t going to lose interest within a month enroll them permanently.

However, this new rule also applies to the adults in the family!

 Plan! Plan! Plan! This point applies to everything from your meals for the week to where you’re going to go on holiday; pre-planning can save you so much money and allow you to manage your finances much more easily. Buying in bulk and preparing breakfasts for the week is one way of planning and saving money. You’ll be getting the most out of your ingredients and ensuring everyone is fed healthy meals all week.

Managing your money in a big family is all about preparing yourself for the future, ensuring you are careful with what you are spending your hard earned cash on and getting the best available deals. If you are struggling, then get in touch with a free debt advice company, such as PayPlan, who will be able to discuss what options are available for you.

Photo by Docent | Shutterstock

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