Smart money saving tips for families on a budget

Adulting is expensive enough as it is—and adding one or multiple kids to the mix can be enough to send some people (and their budgets) over the edge. From childcare, to saving for college, to feeding hungry teenagers, and beyond, the cost of raising a child can be less daunting if you develop a strategy for maintaining a family budget.

“Focus on what you can control, which is your spending.”
—Bright Dickson, Truist’s positive psychology expert and co-host of Money and Mindset With Bright and Brian

Money saving tips by age group

Experts estimate that the total family expenses for a middle-income family to raise a child born in 2015 to the age of 17 would be $310,605.^{Disclosure 1} This amount isn’t small potatoes, but it can be less daunting if you develop a strategy for your expanding family budget. The good news is that taking even a few small steps today can lead to long-term benefits down the road.

Here are some practical tips that can go a long way in helping you make the most of your budget.

Infants/toddlers (0-4 years)

This is the stage of parenting that can be the most demanding—and expensive. Your child is dependent on you for everything, which can drain both your energy and your bank account.

Birth: The expenses start rolling in before you’ve even had a chance to hold your snuggly baby. Prenatal care, the cost of the birth itself, and postnatal care add up quickly. The average out-of-pocket cost of having a baby in the U.S. is around $3,000.^{Disclosure 2} One way to make it more affordable is to start saving in advance with a health savings account (HSA), which may be offered by your employer. HSA contributions for approved medical expenses are tax-free.

Formula and diapers: The price of formula varies, but some of the most expensive brands can run about $40 a can—and each one may only last three to four days. Many of the most popular brands, such as Enfamil, Similac, and Gerber, offer rewards programs. You can sign up online to get coupons, free samples, and rewards. If you’re looking for greater savings, consider generic options, which can cost up to 50% less than brand name formulas. Once you find a brand you love, stock up. Many retailers offer discounts or deals when you buy in bulk.

Baby and toddler supplies: It might seem as if your home is suddenly overtaken by items designed to soothe, protect, and entertain your child, such as pacifiers, monitors, gates, cabinet locks, and so many toys. Since many of these items are only needed in the short term, look for sales. Another way to save is to purchase items secondhand. Check your area for a local resale shop that specializes in gently used baby and children’s items.

Child care: The cost of child care can be nearly as much as rent in some cities, especially if you need help full time. To be prepared, research the options in your area before your little one arrives. Many day care centers, especially the highest-rated ones, can have a long waiting list. You may also want to explore co-op child care options^{Disclosure 3} or programs connected to a local college or university with an early childhood education curriculum.

Talk to your employer about a dependent care flexible spending account, or DCFSA, which can help you save by setting aside tax-free money for certain child care expenses. If your employer offers flexible hours or a work-from-home option, you might be able to trim some of the child care costs with an alternate schedule.

If you’re fortunate enough to have trusted family or friends nearby, another money saving idea could be turning to your personal network for part-time or full-time help. A retired grandparent or a group of friends with children around the same age who could collectively share the expense of a nanny or sitter could also be more affordable options.

Starting a college fund: It might seem a little early to think about college at this stage, but the sooner parents start saving for their child’s tuition, the better. The average cost of college tuition in 2025 is $9,750 for in-state public schools and $28,445 for out-of-state public schools. Private universities have the most expensive price tag, with tuition averaging $38,421.^{Disclosure 5}

Parents can get a jump on saving for college by opening a 529 account as soon as their child has a social security number. These tax-advantaged savings plans are designed to help cover future education costs. They are operated by state or educational institutions and often have additional incentives to make it easier for families to save for college or post-secondary training. A college savings calculator can help you estimate how much to contribute regularly to help prepare. 

Little kids (5-10 years)

By the time your little one has transitioned out of diapers, their entertainment needs have expanded and school requires greater participation than snacking and napping.

Entertainment: Look for deals like “kids eat free” or family discount nights. Many movie theaters offer discounted days throughout the summer and over school breaks. Local public libraries, recreation centers, and museums also offer free or discounted family programs throughout the year.

School supplies and activities: Ask friends and family for gently used backpacks or shoes. If they’re trying a sport and it’s uncertain whether they will stick with it, look into secondhand sporting goods shops for equipment. Local online marketplaces may also be a good source for purchasing secondhand items.

Financial literacy basics: This age is a good time to start explaining the basics of money management. Teach them to save by giving them a piggy bank and an allowance. You can also create a list of daily or weekly chores they can do to earn money.

“At a very early age, we can begin to help children develop the habit of working,” says Brian Ford, head of financial wellness at Truist and co-host of Money and Mindset With Bright and Brian. “We can show them that some chores, like keeping their room tidy, that’s a normal part of family life. But the bigger jobs, like cleaning out the garage, doing something out in the yard that takes a little bit more time and effort and that’s not part of their normal day-to-day, those might deserve a working wage.”

Big kids (11-14 years)

Preteens and teens are all about figuring out who they are, so this stage is filled with new interests, emerging talents, and finding independence.

Technology and gadgets: Tech and toys can be expensive, so start them out with refurbished devices and consoles. If you’re buying new, wait for major shopping days like Black Friday or Cyber Monday, which often offer the best deals.

Sports and hobbies: Before registering your child for a sport or extracurricular program, research the potential costs involved. Some parents may spend an average of $1,016 annually on a sport, per child.^{Disclosure 6} Talk to other parents whose children engage in the same activities. If travel is required, keep in mind the fuel, food, and time costs. Carpool with other parents to save time and fuel. One idea for budgeting for these activities is to establish a youth sports savings account so you can regularly deposit a set amount. If you have an aspiring musician, consider renting an instrument or purchasing one secondhand.

School and summer camp expenses: Field trips, tutoring, and summer camp are additional expenses to consider. Tutors may charge anywhere from $30-$90 per hour, depending on where you live and the subject matter. The average daily cost of summer camp in 2023 was about $87 per day, and overnight camp was $173.^{Disclosure 7} Be on the lookout starting in January and February for early registration discounts for summer camp.

Meal planning: The amount of food consumed by growing kids can astound you. Consider buying items in bulk, shop discount grocery stores, and keep your eyes peeled for sales, especially buy one, get one free deals.

Continuing financial literacy: This is a great age to reinforce the reality that money is earned through work. This could also be a great time to open a checking or savings account so they can learn how to spend money wisely. Add to their chore list, help them budget for a goal, and teach them about the importance of philanthropy.

Older kids (15+)

At this stage, your child may be gaining even more independence, which comes with a new set of expenses and responsibilities, such as driving and part-time jobs. They may also start to explore college or post-secondary training options.

Part-time jobs: Now that your child has had practice earning money for chores around the house, they may be ready for their first part-time job. Once they’ve endured a few hours of babysitting or experienced a few fast-food restaurant shifts, they may realize that the money they earned for such hard work should be spent thoughtfully.

Encourage secondhand purchases: Some of those big teenage milestones often come with steep price tags. Prom. Their first car. Electronics upgrades. Those pricey designer sneakers. You can guide them through more affordable options, including resale shops, refurbished alternatives, and buying a certified preowned vehicle instead of a new one.

Auto insurance: If your teen is eager to drive, look into safe driver discounts for insurance. Some policies offer lower rates for students with good grades or if they’ve completed safe driver training courses. If a young adult leaves their car at home while they attend college, they may also qualify for a lower insurance rate. Some insurers offer discounts if the driver installs a telematics device in the car and uses a telematics-based app when driving. A telematics device monitors your teen’s driving habits to detect driving patterns. It tracks data such as the rate of braking, average speed, fast acceleration, phone use, and time of day when the car is driven.^{Disclosure 8}

Paying for college: The average in-state cost (tuition and fees) for full-time undergraduate students in 2025 is $9,750 for a public four-year institution. The out-of-state cost for a four-year public institution is $28,445. The average tuition and fees for a private, nonprofit four-year institution was $38,421.^{Disclosure 5}

Saving in a 529 account can help you save more for your child’s education—especially if you start early. But even if your child is older and you haven’t started saving yet, don’t panic. Setting up a 529 to help pay for upcoming school expenses at any age is better than never doing it at all. Taking that step can still help. You can use a college saving calculator to help estimate your contribution goals.

While much of the financial aid and college savings information available is directed at parents, kids can also take an active part in saving for their education. If they get a summer or after-school job, they can set aside some of their earnings to use for college.

Kids can contribute by applying for scholarships and grants. With your guidance, they can help research the scholarships that are available locally and nationally. Many scholarships are merit-based, so your child will need to maintain good grades, get involved in extracurricular activities, and acquire job or volunteer experience. Their work toward becoming a solid scholarship candidate should start their first year of high school.

If your family is eligible for financial aid learn early on how it works. Many types of aid are available, including scholarships, grants, loans, and work-study.

Getting your child involved in the process of paying for their college or post-secondary training increases their financial literacy. Even if you are prepared to pay the entire cost, making them aware of expenses and having them contribute something toward it—even through a part-time job—gives them experience with budgeting and saving.

Practice good financial habits

Studies show that many Americans are significantly stressed about money, which can have a negative impact on mental health.^{Disclosure 9} These worries can increase in times of overall economic uncertainty, such as a recession or high inflation. To help alleviate these worries, try to maintain control over what you can by practicing good financial habits like:

1. Setting a monthly family budget, and sticking to a list to avoid impulse purchases when shopping.
2. Keeping your consumer debt low, and coming up with a payoff plan if you carry high-interest debt.
3. Maintaining an emergency savings fund and automating monthly deposits, even if it’s a modest amount.
4. Reviewing your subscription services and membership fees. These small expenses can add up, and eliminating what you’re not using can be a good way to cut unnecessary expenses.
5. Establishing long-term savings goals for your family and keeping them in focus.

Read more: 4 tips and insights to resist impulse buying

Leveraging support systems, staying consistent

There’s no doubt that raising children can be challenging in many ways, including financially. But it’s easier if you don’t feel like you’re doing it alone. Include the grandparents and extended family members to help out with carpooling or child care. If you don’t have extended family members who can assist, try cultivating your own support network of friends, co-workers, or other parents. It may help to invite co-workers who have kids out to lunch, connect with local parent groups online, volunteer at a school event, or organize a family-friendly neighborhood block party.

Even if meeting your financial milestones may seem to happen more slowly than you’d like, the key is to try to keep moving forward. Turn to a financial advisor when you need to, and try using budgeting apps and tools to help you get started or stay on track.