It Costs More Than $20k a Year To Raise a Child — 7 Ways To Cut Your Expenses
The financial side of having a family has never been cheap — and like everything else, it’s getting more expensive. The ongoing costs of raising a child are hard to fathom and necessities like food, clothing, healthcare and housing add up to a hefty $20,813 annually, according to a study from SmartAsset. Further, if you’re in California or Massachusetts, the yearly cost to raise a child skyrockets to more than $32,000, per the study. And that doesn’t include activities, college, or retirement.
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The financial impact of child-related costs is scary, but there are ways to cut back and save money.
Buy Generic
Food is a necessity, but buying brand name groceries is not. To help reduce your grocery budget, go for a store label and skip the name brand. That also goes for medications and cleaning supplies.
Meal Plan
Another way to cut back on grocery bills is to meal plan. It may take a little time and effort, but you can save money by planning out your meals in advance. Figure out what your family will eat every meal for the week ahead of time. Research every item needed for that meal and then only buy those items at the store. Don’t cheat by hitting up a restaurant or the drive-thru!
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Eat Leftovers
Put your groceries to good use and make extra food to avoid the drive-thru where you’ll spend money. Eating leftovers is convenient and easy — and that’s one less meal to prepare in full.
Stop Buying Single-Use Items
Switching to reusable items is a practical and small change that adds up over time and helps the planet. Ditch the paper towels, sandwich baggies, and other single-use items. Cloth towels work just fine, reusable bags are effective and you can take your reusable water bottle anywhere to fill up.
Keep Birthday Parties Simple and Affordable
Kids love a good birthday party, but it doesn’t have to break the bank. Free venues such as the beach or the park are perfect places to host. Sleepovers with movies, pizza and cake are also cost-effective ways to create fun memories for your child.
Vacation Frugally
Having fun in life is a must, but expensive — especially with kids. Look for simple and affordable ways to unwind while spending quality time with your family. Instead of pricey amusement parks, opt for museums with free admission, a weekend camping trip or a bike ride on the beach.
Make Your Home Energy Efficient
Going green will help reduce housing costs. Install energy-efficient appliances, light bulbs, and windows. Wash your clothes in cold water instead of hot and swap to a programmable thermostat.
According to Energy.gov, “You can save as much as 10% a year on heating and cooling by simply turning your thermostat back 7°-10°F for 8 hours a day from its normal setting. The percentage of savings from setback is greater for buildings in milder climates than for those in more severe climates.”
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