Budgeting tips for families

Family vacations

According to Bankrate, the average American spends $1,979 on a summer vacation—and that number can easily go up if you have a few children. In the same survey, Americans say the top reason they wouldn’t go on vacation is because they can’t afford it.^{Disclosure 1} But vacations are a way to make memories, recuperate, and see new parts of the country or world together—all things worth saving for. So take some time to price out a trip, and try to add it to your savings plan. 

New wheels

As your family expands, your sedan may not be the most practical ride to lug around strollers, sporting equipment, and your kids’ friend posse. According to Kelley Blue Book, the average cost for a new compact SUV is $26,000, a midsize SUV is $33,000, and the reliable family vehicle of choice, a minivan, is $32,000.^{Disclosure 2} If saving to buy a car with cash feels out of reach, simply saving for a solid down payment can help keep the cost of an auto loan down. 

Sports, extracurriculars, and camps

Swimming lessons, art class, gymnastics, T-ball, summer camp, piano lessons—it seems there are an infinite number of hobbies your child may want to pursue, and most have a price tag. The cost for activities varies—T-ball may only cost $65, while three months of weekly gymnastics classes could be over $200. A good place to start is to budget $200 per month per child for sports, lessons, camps, etc. 

Home renovations

Whether you need to turn a bedroom into a playroom, add a bathroom, or install a new roof, investing in your home can make it more comfortable and increase your property value—adding a full bathroom can increase the average resale value of a home by 5.7%!^{Disclosure 3} How much you need to save and where you invest those dollars depends on your home and family, but home renos can be a rewarding investment. 

Emergencies

Life happens: Cars break down, you get an unexpected medical bill, you lose some of your income, or the HVAC suddenly goes on the fritz—but these are all things an emergency fund can cover. A Bankrate survey shows that 41% of Americans would be able to cover a sudden $1,000 expense with cash from savings, but 16% would use credit cards to cover it.^{Disclosure 4} Ideally, your family’s emergency fund should be easy to access and enough to cover three to six months of living expenses.^{Disclosure 5}