How do parents manage family finances? Sometimes, moms and dads get to the end of a month and wonder how they kept their sanity and covered all the bills. Every situation is unique, but a few techniques can help parents deal with the stress of financial planning, even if funds are short and expenses are high. No matter what you do for a living, and no matter how much you earn, it's possible to take positive steps toward monetary freedom, teach children how to manage money, sell unnecessary items for cash, save on healthcare, and more. One excellent way to begin is with meal planning and grocery shopping. Here are the specifics.
Plan Meals and Make Detailed Grocery Lists
When you take the time to plan weekly meals and make accurate grocery lists, you save in two ways. First, eating at home more often means less money spent on fast food. Everyone knows that dining out is one of the costliest habits. Plan restaurant meals for special occasions and eat at home most every night. You can save a significant amount of money by shopping with a detailed grocery list. Lists are an excellent tool for eliminating impulse buying. Plus, they help you waste less time in the store hunting for random items you think you might need. Lists put you in control of your shopping budget.
Turn Dormant Life Insurance Policies into Cash
If you or your spouse owns a life insurance policy that you no longer need or want, you can sell it through a life settlement and turn it into cash. You'll also be free from making premium payments ever again. To get started, look at an online guide that explains how these agreements work. The guide also shows you how to estimate the dollar value of your policy so that you can plan accordingly. Life settlements are the most efficient way to convert a static asset like a life insurance policy into needed capital for families of all sizes.
Open Custodial IRAs for Kids Who Work
If kids earn money, you can open a custodial IRA for them in their names. Taking this step is a powerful way to invest in the future and get your children into the habit of saving and planning for the future. Teens who open IRAs tend to grasp the budgeting process better and handle their money more wisely. Explain how they can set up automatic payroll deductions that go directly into IRAs, even for part-time and temporary jobs.
Teach Kids How to Create Budgets
You won't save money by teaching kids to save and spend responsibly, but the effort is essential. Spend a few sessions explaining the family budget to your children. You need not reveal actual numbers, but it's critical to show them how the process works. Demonstrate how you allocate wages and other income to specific expenses. Youngsters are usually fascinated by how mortgages work, so teach them the basics of buying a house and paying for it in increments. Above all, help teens make their own budgets once they begin earning money of their own from part-time and summer jobs.