When you’re living on a budget, you need to create a plan to manage your family’s expenses wisely. Unless you have unlimited funds pouring into your bank account every month, you must find a way to ensure that all of the bills are paid and other necessary expenses are covered before you can spend your money on fun and entertainment. While it might seem like you can keep your family afloat financially without budgeting, you may be surprised at how much money goes to waste every month when you crunch the numbers and formulate a formal budget.
Plan for Health and Dental Care
When you’re making a budget for your family, you should always include savings for difficult situations like healthcare emergencies. Outside of medical emergencies, it’s a good idea to think about potential dental expenses. Dental care options like orthodontics and even fillings aren’t cheap, but they are common treatments. According to David Ross Orthodontics, about 50% to 75% of the population would be able to benefit from orthodontic care. This means that it’s likely that someone in your household could require this kind of treatment. To afford it, you’ll want to start planning and saving as soon as possible.
Even if your child or another family member doesn’t need orthodontic treatment, it helps to budget for dental care in general. Even with good dental insurance coverage, dental procedures can still have high out-of-pocket costs. To preserve your family members’ smiles, having some extra cash tucked away for unexpected dental care can make the difference between losing a tooth and preserving it.
Outside of dental care, you should always have some money set aside for health needs. Starting a savings account specifically dedicated to healthcare costs and contributing to it every month is a great way to prepare for this kind of emergency. On top of that, you can look into insurance options through your employer or other providers and budget for your monthly premium among other expenses related to insurance.
Budget Upcoming Childcare Expenses
Even if your child is only a few weeks old or a year old, it’s never too early to consider how you’ll be able to afford childcare expenses. According to one report from Regina Pacis Academy, roughly one and a half million kids have been enrolled in preschool this past year. Out of those 1.5 million little ones, 32% of 4-year-olds and 5% of 3-year-olds were in preschool. With those kinds of statistics, you can see why you may want to make a plan for how you’ll afford your desired preschool when the time comes. The popularity of daycare can make them competitive, so budgeting extra to afford a pricier option may make it easier for you to enroll your child in preschool when the time comes.
Factor in Routine Car Maintenance
Maintaining your car is a necessary part of the family budget. After all, without a functional vehicle, it may be impossible to get to work and perform other vital tasks that contribute to running the household. Setting aside money for an oil change can keep this routine maintenance job from breaking the bank. According to Nerd Wallet, most vehicles should get an oil change every 5,000 to 7,500 miles. If you budget for that before you need it, you won’t sweat it when it’s time to go to the dealership or car mechanic.
In conclusion, managing your family’s expenses wisely means accounting for potential emergencies and routine expenses you can expect to recur regularly. It also means planning for the future rather than only focusing on what expenses need to be paid today. If you create a spreadsheet, cash envelope system, or other budget method that works for you, you’ll be on track to take care of the family finances effectively and intelligently. If you need more help, you can attend a budgeting workshop to learn how to manage family finances from a pro.