Raising children comes with a constant stream of expenses. For busy parents, budgeting can feel like one more task on an already full to-do list. But there are simple ways to make budgeting simpler.
Here are four tips to help busy families stay organized and save more while they make progress towards their long-term goals:
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1
Set clear goals and plan for upcoming expenses
Start by taking a step back and identifying the larger expenses your family is likely to face over the next year. These might include:
- Summer camps
- Registration and equipment fees for activities
- School supplies and tuition
- Family vacations
- Home improvements
Planning around the costs you already know about can give you a framework. One trick is to create a simple expense calendar to track when to start setting money aside for these things.
Once you’ve accounted for those costs, you’ll have a better idea of how much you have available for day-to-day spending and building your savings.
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2
Review how your family finances are protected
This might look like reviewing emergency savings, insurance, beneficiary designations, or understanding how your deposits are protected at your financial institution.
The Canada Deposit Insurance Corporation (CDIC) insures eligible deposits, up to $100,000 per category, per member institution. We protect deposits like cash, GICs, and foreign currency in a number of categories, such as individual and joint accounts, trust accounts and registered accounts like Tax-Free Savings Accounts (TFSAs).
Coverage is free and automatic when you bank with a member institution.
Learn if your bank is a CDIC member and calculate your coverage.
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3
Plan for unexpected and long-term expenses
Even a modest emergency fund can provide greater flexibility and help keep your overall financial plan on track. It’s also worth considering what long-term expenses may arise in order to plan and budget for them early.
For example, a Registered Education Savings Plan (RESP) lets your savings for post-secondary education grow over time and can also provide access to government grants for eligible beneficiaries. Treating your child’s RESP like any other monthly bill makes education savings part of your family budget. This account is also protected by CDIC, meaning one less thing to worry about.
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4
Stay on track by using budgeting tools
Creating a budget is one thing; maintaining it throughout the year is another. There are a range of tools online to help with this. Budgeting apps, online banking tools offered by your bank, and spending trackers can help you categorize expense types, identify spending patterns and monitor your progress towards your budget goals.
Online banking tools through your bank can also help you automate some of your repetitive weekly or monthly tasks, such as recurring transfers to savings accounts, education savings plans, or emergency funds.
The most effective budgets are often the simplest ones.
By focusing on realistic goals and setting up systems that fit your family’s unique lifestyle, you can build healthy financial habits that support today’s needs and tomorrow’s opportunities.