Ever Wondered How A Family Of Seven Manages Their Finances?

Managing one’s finances can be tough, especially in today’s economic climate where the price of goods keeps rising. A drink that used to cost $ now costs $$. Things are getting more expensive each day and we are all feeling the impact.  

What more if you have young children to care for.    

A mother who wants to be known as Evelyn, and her husband are the proud parents of five children, who are between the ages of three to 14. Feeding a family of seven is no small feat, but thankfully, Evelyn’s thriftiness has been a saving grace. Her careful planning and budgeting skills have been essential in maintaining her family’s financial health. 

She shares her strategies for budgeting and discloses the lifestyle adjustments they have had to make to ensure they live within their means.  

Both parents have to work 

Gone are the days where husbands would head out to work in the morning leaving their wives at home to look after the children and tend to household chores. Given the current economic conditions, many families are unable to survive on a single income anymore, so both parents have to work to contribute to the family fund.  

The same applies for Evelyn and her husband, who both work full-time to support their family as one salary is not enough to survive these days.  

Cutting down on expenses 

One of the easiest ways to reduce costs and increase savings is to cut down on unnecessary expenses such as on dining out and on entertainment. 

Evelyn and her brood have cut back on the number of times they go out, opting for free activities or things they can do at home instead. “We have cut down on going to the movies as it is a costly affair for a family of seven,” she explains.   

And since feeding a large family can be expensive, Evelyn cooks at home as much as possible. “Cooking at home gives me less time to spend with the children but it is the healthier and more practical option in current financial situation,” she says.  

On the occasions when they do dine out, they opt for ‘simpler’ dishes such as fried rice and noodles, instead of the 6-course dishes Evelyn’s parents used to order at Chinese restaurants when she was younger. 

She adds, “We also order water when eating out as it saves (us) a lot (of money) compared to ordering carbonated drinks or juices.”  

Stretching their money 

Distinguishing between needs and wants is a key component of budgeting for a large family. Parents must prioritise essential expenses such as food, housing, healthcare and education, and find creative ways to cut back on non-essential spending. 

When it comes to shopping, Evelyn keeps her spending low by strategising her purchases and only buys what she needs.   

“We tend to let our eyes buy more than we need to fulfil our hunger,” she says. To refrain from overspending, Evelyn ensures that her family eats just enough and doesn’t buy more than necessary to fill their tummies.  

“I limit food consumption nowadays so long as we are filled and not on hungry,” she says.   

She also buys pre-loved books instead of new because “books are costly too”! 

The struggle is real  

Like many parents, Evelyn also worries about the future. Her biggest stressors include the rising cost of education, and unexpected expenses like car repairs. Even occasions such as birthdays and festivals can be a source of headaches because these celebrations often require significant spending.  

Every Christmas, we buy new items of clothing for the children to wear during Christmas mass, says Evelyn. She adds that it is also her family’s custom to buy two sets of gifts per child – one from them (the parents) and one from ‘Santa Clause’! 

I start saving early so I can buy things that I know my children will surely like whenever I see it, she says. However, their tight budget means that she and her husband don’t buy presents for each other. 

To accommodate these additional expenses, Evelyn makes sure she saves at least 10% of her salary every month.  

“Saving 10% is not even for my future or the children’s future. We haven’t gotten to that point yet,” says Evelyn. 

“The money saved (can be used) for anything, from the car’s annual insurance renewal to our pets’ unexpected vet fees, to buying the kids swimsuits, pajamas, and special occasions,” she adds.  

And if they accumulated extra savings, the whole family goes on a well-deserved year-end trip! 

And as a parent, Evelyn feels it is important to teach her children financial management from a young age, so she often speaks to them about the value of money. She also instils good financial habits by using chores to teach her kids about earning, saving and spending wisely. She gives her children money whenever they help out with household chores because she “would like them (to learn) the essence of making money”, she says.  

While managing finances in a large family can bring about its set of challenges, with careful planning and prudent financial management, you can build a secure future for yourself and your children.