Being able to deal with money is an essential life skill – or rather, a set of skills. If you want to give your family the chance to build those skills, then you can lead through example, and provide a little bit of instruction and advice here and there. You can also cooperate with one another to find creative ways to save money.
Let’s examine a few worthwhile strategies.
Sharing and Borrowing Resources
There are certain purchases that can be easily shared between family members. If there are five people living under the same roof, then the chances are good that the household doesn’t need five cordless drills. Every member of the household can enjoy the benefits that this particular purchase can provide. The same goes for a variety of investments, including kitchen knives, games controllers, streaming services and more.
In the same way, using platforms like Library of Things, and services like Fat Llama or Hirestreet might allow you to rent items for special occasions – whether it’s a PA system or a fancy outfit.
Exploring Money-Saving Challenges
You might be surprised at how resourceful you can be when there are bragging rights on the line. Through competitions and challenges like the 1p challenge, or the £1 challenge, you and your family can save money over time. In the case of the 1p challenge, you’re saving 1p on the first day of a year, 2p on the second, and 3p on the third – right up to £3.65 on New Year’s Eve. If you complete the challenge, you’ll have saved £667.95. This can provide a lesson in the value of compound interest, as well as the importance of saving.
Reviewing Recurring Costs Together
As a household, you’ll be exposed to many of the same bills. Sitting down together and trying to determine which kinds of outlay are really necessary can be extremely useful. You might also pool your spending to achieve a special kind of saving, like a bulk discount.
For families with multiple vehicles, significant savings can be achieved by getting multi car insurance. On the other hand, you might determine that you can all save money on your mobile phone contracts by switching to the same provider. Or, you might decide that you’re not getting any use from the multiple sports channels you’re subscribed to – in which case it might be a good idea to get rid of them.
If you’d like to pay close attention to your spending, you might think about budgeting apps that allow you to collaborate on those savings, outside of a sit-down meeting. At its best, family budgeting can be a positive, optimistic thing. Think about how you’ll be able to reallocate money toward the things that really matter in life, as a result of your efforts!