7 Frugal Living and Money Saving Tips for Every Age
No matter what age you are, it’s a good idea to set some money aside for the future. Even small children can learn the savings habit. And, as you get older, it’s increasingly important to make sure you’ve got the money you need to get by.
At Addition Financial, we love working with members of all ages to help them save money. For that reason, we’ve accumulated many frugal living tips and money saving tips. Here are seven of our favorites.
#1: Introduce Your Kids to Saving Early
One of the best things you can do for your children is to introduce them to the idea of saving money. If you give your kids an allowance, you can use it to teach them how to save.
A trick we sometimes recommend is to let your kids know up front that a percentage of their weekly or monthly allowance must go into savings. You can create a savings account for your child and let them know that you’ll put 10% (or whatever amount you decide) into savings for them every month.
It may be helpful to get a savings passbook so your kids can see how the money accumulates, particularly if you choose an interest-bearing account.
#2: Save for Big Purchases
It can help people of all ages to buy desired items with cash instead of on credit. One way to do that is to create a fund for whatever it is you want to buy.
Lots of families create vacation savings accounts, but you can do the same for any big purchase. If your child wants a new video game, for example, you can let them know how much it is and encourage them to set aside allowance or birthday money to buy it.
Adults can do the same thing. You might not have the discretionary funds to buy a new computer without using a credit card. But if it’s not something you need right away, set aside a bit of money from each paycheck and buy the computer only when you’ve got enough saved to pay for it.
#3: Plan Your Meals
It’s common for people to overspend on groceries instead of using items they already have on hand. A good way to live more frugally is to plan your meals and make shopping lists to fill in gaps in what you already have.
For example, if you stock up on items at Costco, you can plan your meals around what you’ve got extra in your freezer or pantry. You might have a case of pasta or rice, and you can plan the rest of your weekly meals to use those items.
Making a list will also help you avoid impulse purchases. If you buy only what’s on your list, you won’t need to worry that you’ll overspend when you’re at the store.
#4: Save on Laundry
If you’re regularly washing your clothes in warm or hot water, you can save some money by sticking to the cold cycle for most items. Washing in cold water is often a better choice because it prevents shrinking and preserves colors better than washing in hot water. You’ll save money on heating the water, too.
You can take another step toward savings by hanging your clothes out to dry instead of putting them in the dryer. In warm weather, most items will dry quickly – and you’ll shrink your electric bill without shrinking your clothes.
#5: Test Generic Products
Not every brand name product is worth the extra money you pay to get it. A good way to live more frugally is to take a few minutes in the store to compare ingredient lists on your favorite brands and the store-brand versions of them.
If the ingredients are the same – and they often are – try the store brand. If you hate it, you can always switch back to the name brand. But switching even a few items can save you money on your weekly grocery bill and help you save for other things.
#6: Set Spending Limits for Gift Giving
It’s easy to go overboard with spending for birthday and holiday gifts. Instead of blowing through your budget, try getting the people on your list to agree to spending limits for gift exchanges.
You can also set limits for yourself. You don’t need to buy big ticket items for your kids. Setting spending limits will help them appreciate what they have while helping you save money for things like college and retirement.
#7: Downsize Your Living Space
As you approach retirement, one of the best ways to reduce your living expenses and stretch your retirement savings is to downsize your living space. You may have needed a big house when you still had kids living at home with you, but downsizing to a smaller house or condo can save you thousands of dollars a year.
Frugal living doesn’t mean you need to give up everything you love. The seven tips we’ve included here can help you save money at any age.
To learn more about Addition Financial’s savings accounts and how they can help you live more frugally, please click here now.