Families often pay more than they should for groceries, insurance premiums, and everything in between. With the ever increasing cost of living, it’s easy to get caught up in doing things because that’s how it’s always been done; paying inflated prices. What if these everyday expenses had easy fixes?
The good news is that you can trim costs everywhere without sacrificing quality or convenience. Just by reassessing your spending habits and making some smarter choices you can save big. In this article, we examine 17 common family expenses that are often overpriced and how you can cut them and make your budget go farther. Now, let’s see how you can make your dollars work harder for you.
Cell Phone Plans
Cell phone bill can add up over time without you even knowing. But a lot of families sign up for plans with too much data or too many features they don’t actually need. If you are trying to cut costs, see if you can move to a prepaid plan or get a plan with fewer features you don’t actually need unless you have long calls. Cutting away extra features is surprising what you are able to save.
Groceries
Groceries are a requisite expense: It doesn’t mean you have to overbuy. There are many families that will throw things into the cart that weren’t on the list, or buy name brand products when generic would work just as well. If you’re trying to save on expenses everyday, try shop in a bulk, plan your meal in advance, prompt for a discount, etc.
Home Insurance
If you’re one of the millions of people who’ve got a home, it’s likely the biggest investment you’ll ever make, but you may be overpaying for home insurance. Home insurance costs the average homeowner about $1,400 a year, according to the National Association of Insurance Commissioners. If you just shop around for quotes or bundle your home and auto policies, it’s easy to save hundreds of dollars a year. Also, you don’t want to be over insured — the limits can be higher than you need.
Car Insurance
Speaking of insurance, car insurance is another area many families overpay simply because they don’t bother to shop around. Compare the policy you have to check your policy is suitable for your needs and compare at least every six months to make sure you are still getting good value for money out of the rates you are paying.
Credit Card Interest
It’s no secret that credit card interest rates are brutal. In the U.S., the average interest rate on credit cards is around 20% but most families just pay that rate because they have a balance from month to month. If you have a high interest credit card, transfer that balance to a card with a lower rate or, better yet, pay it off earlier and harder. Over the long run, you’ll save a ton as your credit score improves and you may even be able to get cards with better rewards and lower interest rates.
A Cable or Streaming Subscription
As more and more people cut the cord, you may still be paying for cable or several streaming services and not using them. If you’re not consuming enough content to make this investment, you may be considering canceling anyway. You can, too, cut costs by bundling services (or sharing an account with family members).
Electricity Bills
For families, electricity bills can be a huge bite out of the family budget, particularly in summer and winter when heating and cooling are such huge considerations. But small changes can add up to big savings. According to the U.S. Department of Energy, you can save up to 10 percent on your energy use by lowering your thermostat by as much as 7 to 10 degrees for eight hours a day. Other ways to have an impact on your electric bill over time include switching to energy efficient light bulbs, unplugging electronics that are not in use or upgrading to Energy Star rated appliances.
Online Shopping
It’s convenient to shop online, but it’s easy to overspend if you’re not in a store. Browsers extensions that can track price and offer discounts on them is the best way to curb this. Also, it’s gotten into the habit of going through your shopping cart one more time before ‘purchase’ to make sure you aren’t making any unnecessary splurges.
Fitness Memberships
Families can also over spend on gym memberships and fitness classes. Instead of locking into such a expensive membership, look for fitness apps, outdoor activities, or even local community centers with cheap alternatives.
Clothing and Apparel
Families often overspend on clothing because kids grow out of clothing really fast. Instead of shopping at discount stores, or buying second hand clothing, which is usually just as good. This also means you’ll be prepared to invest in more long lasting, durable pieces that will last longer than you buying fast fashion and having them wear out.
Vacation Expenses
Vacations are a great way to unwind, but if they’re not planned carefully, they can also lead to serious overpaying. To keep costs low, try to vacation during the off peak seasons, or stay with family or friends or take a “staycation,” which means you explore local attractions rather than travel far away.
Debt Payments
Carrying high interest debt can make you feel like you are throwing money down the drain forever. You can take some of the burden off yourself by paying off high interest debt first and maybe even consolidating your debt to a lower interest loan or credit card. It will reduce the interest you have to pay and also help you get out of debt faster.
Childcare Costs
One of the most expensive things for families with young children is childcare. If you are feeling the strain, there are a few things to consider. Instead, think about flexible work hours, or even a remote work option that will help you cut down on the daycare you need. You also have to share childcare with other parents or you are lucky enough that local government has such programs and you can use services at subsidized prices.
Health Insurance
Health insurance is a must have, but it can also be a budget buster. Many families are overpaying for health insurance by choosing the most expensive plan they can afford without considering whether that plan is the right plan for them. Look at what different plans have to offer and how much you need. If your family is normally healthy, you may decide to drop a more expensive plan or use a Health Savings Account (HSA) to pay for medical bills.
House Cleaning Services
Cleaning services can save you time, but they also can be highly expensive. Many families pay for weekly or bi-weekly cleaning services they don’t need. Instead, commit to cleaning only for special events or as part of a few deep cleans we can outsource to once in a while. Or maybe you should look at something cheaper, or even do the smaller tasks yourself, to reduce the overall cost.
Pet Care
The family pet care is expensive — food, vet visits, grooming. If you know you want to save on pet expenses, you can shop around for less expensive veterinary clinics or sign yourself and your pet up for pet insurance. So long as you’re comfortable with the process, you know you can save yourself a lot of money by doing a little DIY grooming.
Dining Out
Eating out all the time is very expensive, and you’re far too tempted to let someone else cook and clean up for you. Cutting back? Eat out too often or only on special occasions? Set a weekly budget for the price of meals out of the home, and try to stick to it. If you plan meals or prepping your ingredients in advance, eating in is the easiest way to enjoy.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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