3.3.21

Being a Frugal Parent


As much as you want to buy everything that you and your family could ever want and need, it is unlikely that it will always be a possibility. Instead, you might need to sometimes tighten the purse strings, particularly in times of unforeseen financial difficulty, or planning for the future. Being a frugal parent does not, however, mean that you need to go without all the nice things in life. By learning some positive money habits, and when it is best to keep money aside, you can still enjoy yourself without overindulging or teaching your children that money is an infinite resource.

Using an ISA
Whether you have an ISA for yourself or to put money aside for your child, it can be a beneficial way of making your money grow. ISAs are exempt from being taxed, meaning the money you put in and interest you gain are yours regardless, although there are limits on how much you can deposit within a financial year. Currently, this stands at £20,000 for a regular ISA and £9,000 for a junior ISA. You don’t have to stay with the same provider, but “what is an ISA transfer?

In short, it is the means to transfer the ISA balance to a different provider, which might prove to be worthwhile if another bank, building society, or other company is offering higher interest rates than you are currently getting, thus maximising the amount of money you could have in the account by the end of this financial year.

Cutting Back on Shopping
The size of your family can make a big difference when undertaking grocery shopping. This cost can potentially be better managed if you alter the ways in which you shop. Looking for deals on groceries, or even switching to own-brand products, can really help to slash your weekly or monthly spending. Often, these products may taste just as good as their competitors, but with a lower price tag. You can still splurge on luxury items, but either not as frequently or as many, so that you can truly benefit from the savings.

Pass on Your Frugal Ways
Young children might find it hard to be told they cannot have things, or lack the understanding of why it can be good to save money. Rather than simply expecting your child to follow your example without question, it can be a good part of their education to discuss why saving is a good idea, or why you cannot always have what you want. Children who are taught money skills are less likely to succumb to temptation and get caught in debt traps than those who have to figure it out for themselves later on in life.

While it may sometimes feel like you are boring compared to other parents, you must keep in mind that everyone’s financial situations are different. Teaching smart money skills at a young age can help your child to go further in life, as well as to aid them in appreciating the value of the things that they do have.

2 comments:

  1. I'm sure we spend too much on shopping.

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  2. We make a weekly menu before our weekly shop and stick to it. We have hardly any wasted food.
    That's a very good point about saving. It's the one thing my otherwise brilliant parents didn't teach me about when I was young.....

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