Raising Kids On A Shoestring Budget

By Cheryl Whitehead, Parents' Source, January 20, 2001

Frugal, Thrifty, Penny-pinching. What do you think of when you hear these words - Scrooge? No parent wants to be seen as a cheapskate, but you can actually raise your standard of living by finding ways to squeeze a little more out of every dollar. Here are eight realistic money savers that require little time, and can really help stretch a budget.

Cut and trade coupons. By clipping just $10 worth of coupons a week on products you typically buy, you save $520.00 a year. In my neighborhood we have a coupon trading club, which is a great way to gain extra coupons for the items we use most.

Buy and sell used items. Yard sales, flea markets, and consignment shops are great places to get those "dream toys" for your children for a fraction of the retail cost. Five years ago at a yard sale we bought the Little Tykes playhouse for $50.00 (retail $200.00). My son used the playhouse for four years, and then, last summer we sold it at our own yard sale for $50.00. It was like using it for free!

Get the most out of your computer. Print greeting cards, use online encyclopedias and magazines, download maps and games, comparative shop, and communicate regularly with out-of-state family for free! Here are two super-saving computer tips: free internet service is now available from several online servers (saving $240.00/year) and universal ink refill kits will replenish printer cartridges eight times for about $30.00 - saving $250.00 on the cost of new cartridges for the average printer.

Invest your time in your children and save money. Often saving money requires spending time, and what better solution for family money management than planning to spend productive time with your children? Kids love spending time with mom and dad gardening, cooking, sewing and crafting. Not only can you save money on groceries and clothes, but you can also enjoy quality time with your children, which is the best investment of all!

Save on entertainment. Museums, schools, community groups and recreation departments offer quality family activities at little or no cost. The public library is another great resource, offering best-selling books, videotapes, online computers and monthly programs at most locations. Join a local museum within the ASTC network and your membership entitles you to free admission to many other network museums

Make the most of your bargains. Try to keep a little extra cash in your wallet for when you discover a real bargain, then buy in bulk, and stock up on items you know you will need in the future. I recently purchased all the clothes my son could possibly use next summer at a clearance sale of just $1.00 an item, saving almost $100.00.

Use credit cards wisely. Many people see credit cards as being evil, but if you use them wisely, you don't need to throw your credit cards away. Save on finance charges by paying off outstanding balances, then look for a program that can earn money for you! Some credit cards offer cash back or incentive programs - be sure to read the terms carefully. For example, my family uses the Toys R Us Visa, which offers a 1% rebate in the form of store gift certificates. Several other credit cards offer 1% back in the form of savings bonds for college in your child's name. If you have the self-discipline to use cards for your purchases, and pay them off each month entirely, every purchase can gain you 1% back for college for your child.

Start saving early for college. One of the biggest challenges of raising children on a shoestring budget is saving for college. If one of the money-saving ideas above nets you some extra cash this year, you can invest that now for college, and earn significant interest. Scheduling time with a financial planner to set financial goals and a plan for achieving them can also be well worth the time and money. Two additioanl resources to consider for this are the PA Tuition Account Program (www.patap.org) and the College Savings Bank (www.collegesavings.com).

The bottom line is to remember that "thrifty" isn't a dirty word. Decide on a realistic strategy for saving money for your family, and commit to saving where you can. Remember, if you make a "change" in your family spending, you can raise your children on a shoestring budget and still have some significant "change" in the bank!

Cheryl Whitehead is a "Frugal Mom" and the research assistant at Parents' Source. Through her job, she focuses on looking for low cost and free reference materials, entertainment and internet resources. (Check out the Value Shoppers' Outlet, Kids' Source, Family Net, and our events calendar for free and low cost solutions to help be a "Frugal Parent," too!)

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