Parents' topmost priority is giving their children everything that they can — from the basic necessities, education, down to their wants. But raising a family is becoming costlier each year. This, apart from the occasional indulgence through a new toy or gadget the children would ask for.
With the demands of raising a family, planning a household budget is the right move in making sure you spend your money correctly, as well as a chance to educate each family members about the value of money.
Below, parents share their tips in creating and managing a budget for the family.
1. Prioritize your spending.
Start by keeping your receipts or plotting your expenses. By doing this, you will see your spending habits and understand how money goes in and out of your account.
Lissa Leviste, a mother of two boys, says her family prioritizes what they need to spend on
"If they still have plenty of toys, we won’t buy so we can spend on better stuff that they need more like school bag or shoes," Leviste said.
Leire Reyes, mom of one toddler, added: "Know what your essentials and non-negotiables are and always set aside something extra for a 'rainy day.'"
2. Set a budgeting rule.
Try out different budgeting schemes and check which one works for you.
A mom of two, Christine Laviña says she just sets aside 25 percent of what her household earns as savings.
"But I recently saw this formula that says 50 percent should go to your living expenses (house, utility, groceries, etc.), 30 percent for non-essentials, and 20 percent for savings/investments. Trying to figure out how to make that work," she said.
3. Keep a family checking account.
Your family should have an account where your paychecks or sources of income go initially. You can use this to pay monthly bills, tuition fees, and other household miscellaneous fees. After paying all monthly dues, you can start allocating the remaining to your family members or as savings.
If you’re looking for a bank where you can open an account, you can try EastWest Bank’s Family Ties.
Family Ties is a peso checking account with bundled Cash Cards that you can give to up to 5 family members. What’s amazing is that the household head can transfer money instantly to any member just by using his/her online account. More so, each cardholder can use their cash cards as debit, Visa, or ATM card.
How about you? How do you manage your family’s spending habits?
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