Money-Saving Challenges for Families in 2024 and How to Overcome Them
Introduction
Did you feel the continued pinch this year, financially? From continued inflation, to rising living costs 2024 was yet another expensive year. It’s more important than ever to find creative ways to save and make the most of family budgets. Today we are going to talk about how to reduce expenses in multiple areas including child care, groceries and utilities.
Rising Grocery Costs
Grocery prices have been steadily increasing, affecting family budgets.It seems like I can’t get out of the door of the grocery store without paying $100. The biggest way I’ve started to save money on groceries is primarily shopping at Aldi. I know they don’t have everything, but it is so much cheaper than my large stores in town. If you don’t have access to a discount store (and even if you do) make sure you are meal planning and cooking around the weekly sales ad. Every Wednesday grocery stores send out their weekly ad. I always scan the page to see what meat, vegetables and fruits are on sale. When you see those sales make sure you stock up. Try keeping track of how often the item goes on sale, how much your family uses and then determine how much to stock up on from there. Consider trying cashback and rewards apps like Ibotta. I’ll be honest, with my shopping habits, Ibotta doesn’t really make sense. I know some people get really good deals but I tend to buy store brands and try to focus on less processed foods (if possible). Check out my post on Easy, Frugal Meals to save time and money.
Higher Housing and Utility Bills
Housing and energy costs are expensive. Buying a home is incredibly expensive, especially for first time home buyers. To make it more affordable consider buying a duplex and renting out the other half. If that’s not feasible I have heard of people living in RVs or tiny homes to save money. If you’re already in a home or apartment, consider some energy savings hacks.Adjusting your thermostat can save up to 3% of your energy bill. If the weather is nice consider opening doors and windows instead of using your ac or heater. If that’s currently not an option, check your home for drafts. Caulk or seal any window or doors that are leaky. Turn off the lights whenever you’re not in a room and make sure to use LED light bulbs. Unplug everything. If you’re not using it, unplug it. Turn your hot water heater down, which if you have kids hopefully you’ve done already.
Increased Childcare and Education Expenses
This used to be our biggest expense, second to the mortgage. Childcare is so incredibly expensive and it’s not an area I wanted to scrimp on. I’ve heard of some people working opposite shifts so they don’t have to use childcare or doing a childcare swap. None of that really worked for me. My husband used to work shift work, but we needed childcare for when he worked days. What has worked is the moment my child turned 3 we switched to a preschool program which saved us $500 a month. I have heard that in-home daycares are cheaper. My husband’s company started offering child care assistance and gave us $1500 towards preschool. We always get a deduction on our taxes for child care. We also set up a 529 Plan (college savings plan) for future college expenses and contribute a small amount a month.
Healthcare Costs
Healthcare is incredibly expensive in the US. Consider placing a small amount into your Health Savings Account (HSA) each month to act as a medical emergency fund. Invest in your health through exercise and a healthy diet. If you do have long-term health care needs, shop around for your prescriptions. Use GoodRx to compare prices, ask how much the drug will cost if you don’t use your insurance or shop at Costco’s pharmacy. It always baffles me that the antibiotic my child is prescribed is cheaper without insurance. I’ve also learned to ask if they have any discount cards. Every time I’ve asked, the answer has been yes.
Debt and Credit Card Interest
Paying off credit cards or other high-interest debt can be difficult and prevent families from being able to save. Consider using methods like the avalanche or snowball strategy to pay off this debt. Look into lower-interest loans to consolidate credit card debt, but only if you are prepared to stop using credit cards for expenses you can’t pay off. Some families don’t need to be using credit cards at all. It could be better to rely on cash or debit cards for everyday purchases and focus on building an emergency fund. Personally, I’ve always been afraid of credit card debt. My husband wants to use them because we pay them off every month and get cash back for retirement. I still firmly believe we spend more when we use credit cards.
Family Entertainment on a Budget
I have an entire blog post on ways to entertain a family on a budget. My child is currently obsessed with Paw Patrol. I looked up tickets to Paw Patrol Live and they were $100 each! After reading the reviews, I determined that it wasn’t worth it for our family to go. Family outings can be very expensive, but they don’t have to be. Consider attending local events that are free or low cost. Our community has a surprising amount of events for being a small community. At home you could have family board game nights, movie nights or backyard camping. We do invest in an annual membership for the zoo and the children’s museum. I consider both to be an investment in my child’s education because they are learning experiences. Like I mention in my other posts, some libraries may have museum passes you can check out.
Transportation and Commuting Expenses
Rising fuel prices and vehicle maintenance can take a toll on a budget. Last time I renewed my car’s registration I was shocked at how expensive it had gotten. While there’s nothing we can do about taxes, there are some other ways to save. Drive responsibly not only to prevent wrecks but to save fuel. Use cruise control religiously. Maintain your vehicle well to extend its life. Shop around regularly for car insurance.
Saving for the Future Amid Economic Uncertainty
Setting aside savings when every dollar counts can feel impossible. Consider reading my other article about How to Save Money Even When You Think You Can’t. Some other quick tips are to automate savings: save before spending, even if it’s only a small amount. Set small achievable goals for yourself.
Conclusion
I know that saving can be difficult, but consider trying just a few of these strategies to improve your family finances. Switching grocery stores and being able to put my child in pre-k instead of daycare alone has saved me a significant amount of money. Do you have any tips on saving money in 2024? Feel free to share below!
