AP – When inflation rises, childcare expenses do, too. To help your money go further in 2023, you may want to reevaluate some of your recurring child-related expenses.
Here are a few strategies for reducing costs, according to finance professionals.
If your snack cupboard is empty within three to five business days because your kids have bottomless bellies, then you may be looking for ways to reduce your grocery bill.
This may especially be the case if you’re feeling the effects of higher food costs due to inflation.
One cost-saving strategy is to plan your shopping ahead of time to avoid buying items you don’t need. Personal finance expert and Finances Demystified founder Dominique Broadway switched from going to the store to using grocery delivery services so she knows exactly how much she’ll spend.
Broadway also recommended putting the same groceries in different delivery service provider carts so you can do a side-by-side comparison of prices. “You’ll be surprised, the difference can be pretty large just because of delivery fees and the inflated prices. Over time that actually does add up,” she said.
Premiums can become a noticeable expense when you pay them monthly.
Adding co-pays every time you visit the doctor increases your out-of-pocket costs even more. If you have a relatively healthy child and can say the same for yourself, think about whether a health savings account could save you money.
There were so many toys in my house by the end of 2022 that my son and I gave half away. This year, I’m cutting costs by making better use of free activities.
Oftentimes, parents buy children items, only to realise what they really value is experiences, Broadway said. “I’ve purchased a USD3 activity kit from Target and gotten hours of fun and play with my children out of something like that versus just buying them a bunch of toys,” she said. “I think that alone is a great way to cut costs and build a better relationship with your children and make more memories with them, as well.”
If any of these strategies lead to savings this year, Broadway suggests investing the money in a custodial account for child-related future expenses and to help your kids build wealth.
“Take that money and invest it for your children – have it working for you and for them.”