When someone is single, you can sometimes be a little carefree with money, because there aren’t so many expenses. But when you start a family, and as your kids grow, more and more expenses come up, and that’s when you need to get more money smart.
Making a budget is extremely important to make sure that you are spending less than you have, as is saving up for the future, because you never know when sudden expenses will come up or your earning potential goes down.
Here are some suggestions on how to do this.

How to Manage Your Finances as Your Family Grows
Yesterday, your main concern was where you and your partner will go on vacation, what party you’ll attend, and is that outfit you wore a month ago still okay or do you maybe need a new one. Today, it’s diapers, daycare, a college fund… Whew! A magic wand would surely help but you’re not Cinderella and there’s no Fairy Godmother coming to help you so you need to help yourself.
But how do you make that happen? If you need to cover groceries, utilities, housing, insurance, etc., how on Earth are you going to save any money? Unless you never go on a vacation again or treat yourself to dinner at a nice restaurant, that is.
In this article, you’ll see how to keep your finances in check as your family grows, how to make your budget actually work, and how to be able to save money without completely emptying your bank account.
How to Create a Family Budget
First, check where your money goes each month. Some expenses stay the same all the time, like rent or mortgage, utilities, insurances, etc. But there are also those that change, like dining out, entertainment, and groceries. You want to separate essential costs from those that are just for funsies, but not really necessary, and a good way to do it is by following the 50/30/20 rule.
- 50% of your income should cover necessities, like housing and food.
- 30% goes for vacations, dining out, and basically things you want but that you could do without.
- The remaining 20% is for savings and repaying debts.
Once you know what you’re spending your money on, you’ll see it’s much easier to track your expenses and find where you can make cutbacks without your family’s quality of life going down. You can even download a budgeting app on your phone to set saving goals, categorize transactions, and more.
How to Prepare for the Unexpected
If you don’t think you need an emergency fund, you’re 100% wrong. You do. Life is full of surprises, and not all of them are good. What if your car breaks down on the way to work? What if there’s an emergency medical bill? What if you lose your job all of a sudden?
If you’re not prepared, your finances will go off the track, and so will your nerves. That’s why you need a financial safety net. You don’t want to max out your credit cards or take out a loan if something unexpected happens. A good rule of thumb is to save at least 3 to 6 months’ worth of living expenses, but even if you can only save up 1 or 2, it will still make a difference.
It can be very overwhelming to set aside a lot of money, so start small. Save up what you can every month and you’ll see that it will add up to a more than decent amount in a few months. The most important thing is to stay consistent, but you should also have a separate savings account or a money market account. Your savings need to be easily accessible and they shouldn’t be at risk of market fluctuations.
Investing in the Future
Planning for the future isn’t the same as having an emergency fund. Apart from having funds for the unpleasant surprises, you also want the money you have to grow in a way that will benefit your family in the long run.
One option is to invest in retirement accounts like 401(k)s, IRAs, or Roth IRAs as early as possible, especially if you’re taking advantage of the employer-matching contributions. If there’s a college tuition you’ll need to pay in the future, 529 Plans or ESAs will give you a tax-efficient way to prepare for it.
It’s also a good idea to consider stocks and real estate. They’re riskier, but the returns are much higher. You also want to have life insurance and think about estate planning, so your family is protected if the unexpected happens.
Of course, we can’t forget about owning a home. If you and your family are looking into becoming homeowners and you want a better deal, FHA loan rates have lower interest rates and more flexible credit requirements.
Conclusion
Some would say that having an emergency fund or life insurance is like expecting the worst to happen, but you’ll notice that those people are stuck in the same place financially for years, if not decades. Your priority should always be to cover the necessities, but if you have a family (and even if you don’t!), you should still think about being financially safe and even growing your money.
Nobody knows what the future holds, but you’ll be far less anxious about it with a safety net.