Controlling your household expenses

September 27, 2013 by Ademola Alawiye

   

Controlling your household spending and staying within a budget can be a struggle. ADEMOLA ALAWIYE writes on how to minimise spending

A budget allows you to control your family’s spending so that you have enough money to pay your bills while also saving for vacations, retirement and your children’s education. It is important to note that financial security doesn’t come easy. It takes adequate planning and strict adherence to saving to be financially secured. This is why you have to get your family involved in the practice of saving. You must teach your family why it is important to cultivate the habit of setting money aside for the future, as no one can tell exactly what the future holds for his or her family.

Management consultants explained that the ability to get your family involved in the process of saving money would make you spend less, and to a large extent guarantee your family’s financial security. The Managing Consultant, RB Consultants, Mr. Kehinde Adeshina, says the prevalent harsh economic situation in the country has made it important for families to plan for their future. According to him, one way to achieve this is by taking adequate steps that will boost family finances through savings. Below are simple steps on how to get your family involved in saving money, according to experts:

Compare prices together

You should occasionally involve your family when shopping. Have your family help you compare prices. Experts say this will teach them to get the best deal as possible and will help teach them how to save additional money each month. By doing this, you will not only save money as a person, but will save money for the whole family. This may not be a significant sum at first, but when done repeatedly, you will be able to save a tangible amount that can be channelled elsewhere or used to solve a specific need that will better the lot of your family.

Rather than drive, walk to places not far from home

You should encourage your family to walk to places that are not far from home rather than driving everywhere. The cost of fuel in Nigeria is on the high side and transportation is not cheap. You can save by reducing the number of places you drive your family to. Your family can walk to places with you on a sunny day instead of drive everywhere. They will enjoy the nice weather and also feel better knowing that they are helping you save money too. This may not be accepted by every member of the family, but you have to make them understand that it is best to save when there is enough, for no one knows when the drought will set in. It is not a must to drive to everywhere, you may decide to leave the car and take a stroll with your family to church, mosque, a birthday party or an event, as long as the venue is not far from your home.

Let them eat at home

You should encourage your family to cultivate the attitude of always eating at home. This reduces the money spent on feeding. Experts say you can teach them the importance of eating at home instead of going out to restaurants as often. According to them, this will be a good learning experience in teaching them to save money by eating healthy food at home instead of going out all the time. Eating at home will not only save you money, it will guarantee your health, because you can be sure of what you use in making your meals, but may not be able to adequately tell what is used in preparing the meals served in some restaurants. It is therefore important for families to always promote the attitude of eating at home. However, when you and the family go out to eat at restaurants, make sure you go out at lunch time to help them realise how much cheaper the lunch menu is, instead of paying dinner prices. They will enjoy knowing that they can have a good meal and save money at the same time while having some fun too.

Teach them how to shop

As a parent, it is also your duty to teach your family how to shop. You can show your family how much cheaper it is to buy some clothes at a thrift store or even yard sales instead of paying retail price, experts say. This will broaden the understanding of your kids when it comes to shopping for clothes and other related items. They will realise that they can end up paying less money for better clothes than what they would if they bought brand new at the retail store. By so doing, you are cutting cost and saving money for your family. Teach them to go shopping when it is on sale. This is another way to have a great learning experience and have fun saving money. They will be amazed at how much money is saved by just changing the way they shop for items. The whole idea is to save for the future and to make sure your children understand why it is important to save as a family.

Introduce a savings contest

You can initiate a savings contest in the family to see who can save more. Experts say you can make it a game or contest to see how much money that the whole family can save each month. You can also get an organiser to put all the coupons in different categories in order to keep track of it all from grocery coupons, restaurant coupons, and music coupons. This will kindle the practice of saving among your children and will make them appreciate why it is important to save both as an individual and as a family.