4 in 10 Parents Say They’d Have More Savings if It Weren’t for Their Kids. Here’s How to Boost Your Cash Reserves as a Parent

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Kids can eat up your money. There’s no getting around that. But read on for ways to save in spite of having children to raise. 

I was talking to a friend of mine lately whose goal is to boost her savings account in the wake of a recent layoff scare. (She didn’t actually lose her job, but for weeks, there were rumors circulating at her company that led her to believe she would.) When I asked her what progress she’d made, her answer was a resounding “none.”

She then explained that if anything, she’d almost had to dip into her savings recently to cover the cost of teacher gifts (a common thing to give at the end of the school year) and a recreation program so her kids wouldn’t sit home bored out of their minds during the summer. And that led to a whole long discussion about how our kids basically take up all of our money.

But clearly, lots of parents have that experience. In a recent survey by Policygenius, 40% of parents agreed that they’d have more savings if it weren’t for their kids. Given that the cost of raising a child to age 17 is now estimated at $310,605 for middle-class families, that makes sense.

Let’s also remember that in addition to spending money on child-related expenses, many parents routinely pump money into 529 plans or brokerage accounts in an attempt to at least begin to cover the cost of college once their kids are old enough to attend. In fact, I can tell you point blank that’s where a lot of my money goes.

But while having kids can certainly make it more difficult to save money, it doesn’t make it impossible. Here are a few steps I’ve taken to boost my cash reserves as a parent, and you may want to do the same.

1. Prioritize your kid-related spending and learn to say no

My kids are constantly asking if they can sign up for new activities, get new clothing, and go out to eat. And my answer to those inquiries tends to range from “maybe” to a flat-out “no,” depending on what’s being asked of me.

The reality is that many kids are demanding not because they mean to be, but because they’re curious, excited little beings who get pleasure out of trying new things, wearing new clothes, and eating yummy food that isn’t Mom’s same old chicken nuggets. And they don’t always understand that there’s a working parent with limited financial resources on the other side of that coin.

As such, I’ve learned to set priorities when it comes to these requests, and it’s helped my savings grow. I’d rather spend more to give my kids different experiences and spend less on stuff like clothing that they’re probably just going to destroy. So while I’ll usually say no to a new jacket or logoed shirt that isn’t necessary, I might say yes to a new sport my kids want to try out.

2. Use tax-advantaged accounts to your benefit

Healthcare is an expense a lot of parents have to bear. In the past month alone, I’ve had a hefty orthopedist bill for one child and a pediatrician bill for another when we weren’t sure if his sudden sore throat was from allergies, a virus, or strep throat.

That’s why I make a point to fund a health savings account. I can do so because my health insurance plan is compatible with one, and you’ll need to check your coverage to see if this option exists for you.

But these accounts allow you to contribute funds on a pre-tax basis to cover medical spending, and that means the IRS taxes me on less of my income. That, in turn, makes it easier to save.

3. Have your kids help out when they’re old enough

My oldest child is 11, which means he’s at an age where he can do things like help his sisters with their homework so I can work more and prepare meals as long as they can be heated in the microwave, and not over an open flame. (We’re just not there yet.) But if you have kids who are even older, you might be able to utilize their services to save money on hired help, whether it’s a babysitter for your younger kids or a lawn service to cut your grass.

Some parents are afraid to put their kids to work. I’m certainly not. My 8-year-old daughters are responsible for putting away their own laundry, among other tasks. The fewer services you have to outsource, the easier saving money becomes.

Kids can be expensive — there’s no getting around it. But yours don’t have to prevent you from saving money completely. And if you follow these tips, you may find that your cash reserves are slowly but surely able to grow despite the numerous expenses your offspring result in.

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