Having children also brings financial consequences. As a parent, you already have enough to spend. That’s why today we present 8 budgeting tips for all parents. These basic tips will help you live within your income and save money even if you have children.
1) Consider Additional Costs
Having and raising children is expensive. For example, consider not only the one-time costs of setting up a nursery, but also the ongoing costs of diapers, childcare, groceries, energy and water usage, holidays, babysitting, school and study. Your income may decrease because you will work fewer hours. Take an overview of your income and (expected) expenses.
2) Check to See if There Is a Budget for Children
For families with a certain income, the government provides a supplement to expenses. The contribution amount depends on the number of children, the age of the children, and the parents’ income. Note: Income is net of deductible items such as mortgage interest deductions. For more information on deductions, please visit the Tax and Customs website.
3) Child Care/Playgroup and Child Allowance
You may be eligible for a child allowance if your child attends a registered childcare facility. The allowance is used to cover childcare expenses. The amount paid usually depends on your income (after deductions) and the number of children attending childcare.
4) Check for Other Allowances
Were you and your partner not yet each other’s allowance partner? Then you have been so since the birth of your child. As a result, the amount of your health and housing allowances may be affected. If this is the case, you will need to adjust your allowances. This is because then you will not have to repay a large portion of the allowance later.
5) Review of Maternity Leave Provisions
If you work for an employer as a mother, you are generally entitled to at least 16 weeks of pregnancy and maternity leave with pay. If you receive unemployment benefits as a mother, you will also receive maternity benefits based on your pre-employment salary. Application for maternity benefits must be made at least three weeks before the desired start date.
6) Revision of Childcare Leave Provisions
In some countries, working parents can temporarily shorten their working hours and devote themselves to childcare. This is called childcare leave. Until the child turns eight years old, the parent is entitled to 26 weeks of leave per week. In some cases, your pension accumulation will continue in full after you take parental leave. This depends on the pension plan to which you belong. The number of hours under your contract remains the same even if you take parental leave.
7) Choose Second Hand
Children grow up like cabbages; they can get too big in 1-2 months. It’s a shame to have to buy new clothes every time. Buy your child second hand clothes or look at the used clothes of family and friends. You may find someone who can trade with another parent or buy clothes (for free or at bargain prices). This is also true for toys. Children do not know the difference between new and used, and it is often not really necessary.
8) Use a Shopping List
Shopping with children can be pretty tiring, and there is a high possibility that you will forget something or buy something unnecessary. Make a shopping list in advance and stay on it as much as possible. To shop economically, first check all the (online) folders. This way, you will know exactly where to find the cheapest food, and you will be able to calculate approximately how much you will spend on your shopping.
Let us know if these few tips have helped you in the comments below!