As
we go about our daily lives, we often make small choices that add up to big expenses over time. These decisions can impact our household spending and either send us spiraling into debt or help us save money for the future. Here are some cold hard facts about family spending that may surprise you.
1. Couponing isn't just for grandmas. Gone are the days of couponing being a hobby for retired women. In fact, according to a survey by RetailMeNot, millennial parents are the most likely to use coupons and discount codes when shopping. By taking a few minutes to search for promo codes or clip coupons, families can save big on groceries and household items.
2. Children cost a lot of money. It's no secret that raising kids can be expensive, but just how expensive may shock you. According to a report by the USDA, a middle-income family will spend over $233,000 to raise a child from birth to age 18 (not including college expenses). That's nearly a quarter of a million dollars!
3. A "frugal" lifestyle is all about perspective. One person's definition of living frugally may be different from another's. For example, while packing your own lunch to save money may seem like a common sense move to some, others may view it as an inconvenience. It's all about finding a balance that works for your family's needs and financial goals.
4. Buying in bulk isn't always cheaper. While it can be tempting to stock up on bulk items at the wholesale club, this may not always be the most cost-effective option. First, consider how much storage space you have available to avoid wasting money on items that will expire before you can use them. Additionally, be sure to compare the unit prices of different package sizes to ensure you're getting the best deal.
5. Debt is a cycle that can be hard to break. Credit card debt is a vicious cycle that can quickly spiral out of control if not managed effectively. A balance transfer credit card can help consolidate high-interest debts into one manageable payment, but it's important to create a realistic plan to pay off the balance before the introductory interest rate expires.
6. Eating out adds up fast. While dining out can be a fun treat, it can quickly become a financial drain if not managed properly. According to the Bureau of Labor Statistics, the average household spends nearly $3,000 per year on dining out. By cutting back on restaurant meals and cooking at home more often, families can save a significant amount of money.
7. Buying used can save big bucks. While it may be tempting to purchase brand new items, buying used can be a smart way to save money. From clothing to furniture to electronics, there are many high-quality items available secondhand at a fraction of the cost of buying new. By being mindful of these cold hard facts about family spending, families can make smarter decisions with their money and work towards achieving their financial goals.