How To Budget For A Family - 5 Family Budgeting Tips

24 Oct

With the cost of living on the rise, managing a family budget has become more challenging than ever. From groceries to childcare and housing, everyday expenses seem to be increasing leaving families with limited choices.

But with some smart planning and a focus on savings, it’s possible to stay on top of your finances, transactions and provide for your family’s needs. Here are 5 tips on how to budget for a family budget that might work for you.

Overview:

5 tips on how to budget for a family

Tracking your spending
Food preparation
Save on utilities
Set aside an emergency fund
Open a High Interest Savings Account

Family budgeting tips

1. Tracking your spending

Before you can start budgeting, it’s crucial to understand where your money is going. Take a month to track all of your family’s expenses - everything from big-ticket items like rent or mortgage payments to smaller, everyday purchases such as takeaway coffees or school lunches.

Use budgeting tools: Online tools such as budget planning calculators or budget planners can help you control your bank accounts and provide detailed breakdowns of your expenses.
Set spending limits: Establish weekly or monthly spending caps for non-essential purchases like entertainment, dining out, or takeaway.
Review your subscriptions: It’s easy to lose track of recurring costs like streaming services or gym memberships. Cut back on any subscriptions you don’t use regularly.

By doing this, you’ll get a clear picture of where you can cut back or adjust.

2. Food preparation

Food is one of the largest household expenses for Australian families, but you can save significantly by planning meals ahead. Creating a weekly meal plan will allow you to shop more efficiently and avoid costly impulse buys at the supermarket.

Tips for meal planning:

Cook in bulk: Make meals that can be frozen and reheated for busy days, such as soups, casseroles, or pasta dishes.
Buy seasonal produce: Not only is it fresher, but it’s often more affordable than out-of-season fruits and vegetables.
Consider meat-free meals: Incorporating vegetarian meals a couple of times a week can help reduce costs. Plant-based dishes tend to be cheaper and healthier.
Stick to your shopping list: Avoid impulse buying by planning your meals and sticking to a list while shopping.
Make use of bulk buying: Buying bulk foods can save you in the long run!
Prepare meals that stretch across multiple days: such as large casseroles, soups, or slow-cooked dishes. Don’t forget to factor in lunches for work and school to cut down on expensive takeaways!

3. Save on utilities

Energy prices in Australia continue to rise, but there are ways to keep your utility bills in check. Simple changes like turning off appliances when not in use, switching to energy-efficient light bulbs, and reducing heating and cooling usage can make a significant difference.

Using energy efficient fans can save tremendously during summertime and even installing water-saving shower heads can cut down your utility bills and keep you environmentally friendly.

Shop around for better deals on electricity and gas providers, and consider government rebates that might be available for energy-saving appliances.

Another great tip for saving on utility bills is having family nights by candlelight. by switching off lights and having a fun, tech-free evening with board games, reading, or talking by candlelight. Not only fun for the kids but saves you money!

4. Set aside an emergency fund

Unexpected expenses are part of life, whether it’s a car repair, a health issue, or an urgent home repair. That’s why it’s important to build an emergency fund. Start small, aiming for a buffer of at least $1,000, and gradually increase it until you have three to six months’ worth of your family's living expenses saved.

Having an emergency fund will provide peace of mind and prevent you from having to rely on credit cards or loans in a financial crunch.

Additional tips for building an emergency fund:

Automate your savings: Set up automatic transfers into your emergency fund savings account on payday, even if it’s a small amount like $10 a week. You might put this money into your home loan if you’re a home-owner to reduce your total interest payments, where you can redraw the funds if needed.
Start a 'no-spend' challenge: Dedicate a week or even just a day each month where you avoid spending money on non-essentials, such as eating out, entertainment, or online shopping. Instead, take the money you would have spent and put it directly into your savings account.
Sell unused items: Selling unused household goods or clothes can give your emergency fund a quick boost.

5. Open a high interest savings account

Once you’ve got the basics of budgeting and saving down, it’s time to make your money work for you. Opening an interest savings account allows you to grow your savings faster by earning interest on your balance.

Look for accounts that offer competitive rates, and make it a habit to deposit regularly, even if it’s a small amount.

Broken Hill Bank offers savings accounts designed to help families build their nest egg with generous interest rates and no hidden fees.

Competitive interest rates: Look for an account that offers a high rate to ensure your money is growing.
No hidden fees: Choose a savings account with no monthly account-keeping fees, so you aren’t losing any of your hard-earned money.
Easy access to funds: While it’s good to have a savings account that earns you interest, ensure you can access your money quickly in case of an emergency.

Explore Saving Opportunities With Broken Hill Bank

Budgeting for a family may seem like a daunting task, but by following these simple tips, you can take control of your finances and build a stable future for your loved ones.

Broken Hill Bank can help you maximise your savings, with competitive savings accounts and personalised financial advice. Become a Broken Hill Bank member online today or contact us for more information.

Family budgeting tips: FAQs

How do I start saving on a tight budget?

Start by tracking your spending to identify areas where you can cut back. Even small savings on groceries or utilities can add up. Setting realistic, short-term savings goals will help keep you motivated.

What’s the best way to save money on groceries?

Meal planning and shopping with a list are key to saving on groceries. Buy in bulk where possible, and focus on seasonal produce to get the best value for money.

How much should I keep in an emergency fund?

It’s generally recommended to have three to six months’ worth of living expenses in an emergency fund. Start small and build up your fund gradually.

What should I look for in a savings account?

Look for a savings account with a competitive interest rate, no monthly fees, and easy access to your funds. A high-interest savings account can help your money grow faster.