Smart Ways to Save More
As the Packer family sat down to prepare for the upcoming school year, the children daydreamed about the first day back when the yellow school bus would pick them up from their dairy farm, and the parents took a look at their budget and realized something surprising. It wasn’t the big things draining their bank account. It was their everyday choices, such as the extra groceries they didn’t need, the streaming subscriptions they rarely used and the small impulse buys that added up fast.
Sound familiar? Many Wisconsin families feel the same way. Between summer getaways up north, miscellaneous school expenses, heating bills in the winter, and everything else, it’s easy to lose track of where your money goes. The good news? A few simple changes can make a big difference for your family, and National Exchange Bank & Trust is here to get you started on the right track! Check out our helpful budgeting tips for families and simple money-saving strategies to take charge of your finances with confidence.
Why Budgeting & Saving Matters for Families
Did you know that more than half of Wisconsin residents live paycheck-to-paycheck, often spending as much or more than their monthly income, according to the Wisconsin Department of Financial Institutions?
Smart budgeting can break that cycle and help you save more for what matters most to you and your family. Whether that’s an emergency fund, family vacations, your child’s college education or a solid retirement cushion. Setting clear savings goals and having a plan in place is the first step to taking charge of your family’s finances with confidence.
5 Simple Budgeting Tips for Families
Budgeting doesn’t have to be complicated. Here are five practical ways to start managing your family’s expenses and budget:
1. Track and Categorize Your Expenses
Track and categorize expenses by reviewing your transactions in online banking or your statements. This will give you a baseline of what you are spending now. You might be surprised how many “little things” you find. Use the tools in your tool belt: the Financial Wellness digital money management tool, inside Exchange and the mobile app will help give you a complete picture of your financial accounts, easily track expenses, and create savings goals using your existing accounts.
2. Eliminate Hidden and Unnecessary Costs
Cut back on expenses that don't bring equal value to your life. Cancel subscriptions you haven't used in the past month and plan more meals at home. Bundling services and subscriptions with relatives or friends can also help reduce costs.
3. Adopt the 50/30/20 Budgeting Rule
If traditional line-item budgeting feels overwhelming, try the simplified 50/30/20 budget rule. Here is how it breaks down for household expenses:
- 50% for Needs: Non-negotiable bills like rent or mortgage, home heating, basic groceries, healthcare, insurance and minimum debt payments.
- 30% for Wants: Dining out, kids' extracurricular sports, summer weekend trips, streaming services and entertainment.
- 20% for Savings & Debt Payoff: Building an emergency fund, extra principal payments on high-interest loans or contributing to a college savings account.
4. Automate Your Savings
Make saving a priority. Set up automatic transfers to your savings account for a low-effort way to save. If available from your employer, utilize the Wisconsin Saves Program, designed to help establish savings through the automated saving strategy of split deposit.
5. Establish Clear Financial Goals
Vague goals like "saving more money" are hard to stick to. Set specific targets, such as saving $1,500 for winter heating costs or $500 for holiday shopping, to keep your household motivated and focused.
Practical Money Saving Tips for Families
Once you have a budget in place, try putting these practical money-saving tips for families into action:
- Meal Plan and Shop Smart: Unused groceries cost families thousands of dollars every year. Plan weekly meals around sale items, make a grocery list, and avoid shopping on an empty stomach.
- Be Smart with Home Energy: From new insulation to smart thermostats, you can help reduce energy costs, enhance efficiency and take advantage of rebates and incentives for energy-saving projects and products. Focus on Energy is a great resource to start making energy saving decisions for your home and reap the economic benefits.
- Hunt for Local Deals: Many Wisconsin communities have swap groups, neighborhood garage sales, and secondhand kids’ stores to buy gently used items for less. Joining store loyalty programs and shopping the weekly sales ad for your local grocery store can also optimize your savings.
- Enjoy Free Local Entertainment: There are many free family-friendly events and activities throughout our local communities. Whether it’s a community festival, a movie in the park, or a local organization’s event, there are plenty of ways to have fun without overspending.
Just like the Packer family discovered, it’s often the small, everyday choices that quietly add up and affect your family’s finances. Using simple budgeting tips and smart saving strategies, you can take control and start making those dollars work harder for you. Remember, it’s not about cutting out all the fun, it’s about focusing on what truly matters to your family and building a financial plan that supports your goals. Start small, take it step by step and before you know it, you’ll feel more confident and in charge of your family’s financial future!
Explore Financial Education Resources by Age Group
Wherever you are in your financial journey, National Exchange Bank & Trust offers resources to help you learn and grow. Explore our financial education resources.
FAQ's
What is the 50-30-20 rule?
The 50/30/20 rule is a popular, easy budgeting method to help people manage their money in a balanced way where 50% of your income goes to needs like housing, utilities, groceries, insurance, and minimum debt payments, 30% of your income goes to wants, things like dining out, entertainment, hobbies, vacations, and non-essentials, and 20% of your income goes to savings and debt repayment, like building your emergency fund, paying off extra debt beyond the minimum, or investing for the future.
How can I teach my kids to save money?
Give them a simple allowance system, set savings goals for something they want, and show them how to divide money into spending, saving, and giving. Check out our Financial Education Resources for kids to learn more.
How much money should a family save each month?
A good starting point is to save at least 10%–20% of your income if you can, but even small amounts help. The key is to be consistent.