I’m not going to pretend to be the most financially savvy mom on the block. I’m raising five kids on the salaries of a public school teacher and freelancer, so I’m definitely also not rolling in the dough.
The world feels more expensive than ever, so we could probably use all the money saving tips for moms we can get.
It’s always a good idea to consult with a professional financial advisor about your own financial situation, but here are some general money saving tips I wish someone had shared with me as a new mom.
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Start a 529 Now
A 529 plan is a tax-advantaged savings account where the money is specifically allocated to your children’s future educational expenses. You can add money to the account and it grows tax-free. In some states, when you take the money out, it’s also not subject to federal or even sometimes, state taxes.
You can use the money in the account for any educational expenses, even K-12 education, college, or vocational training programs. It can also be for different children, so if you have multiple children, and one chooses not to pursue further education, the funds can be used for a different child.
The best place to start with a 529 plan is typically your state’s plan. You can start a 529 plan at any age for your child (it’s never too late!), but you’ll get the most out of a 529 by starting it as early as possible and making regular contributions. You can also ask family and loved ones to contribute — their contributions are not subject to federal gift taxes either.
I wish that someone had told me about 529 savings plan earlier. With five kids in our house, I could have made some significant dents in their future education costs.
Get a Costco Membership If Possible
I was one of those skeptics who thought that a Costco membership was not worth the hype. Why would I pay to get into a store to pay for my groceries? But now that I have five children who eat a lot, I can see that a Costco membership is fully worth it. I can feed my family in cost-effective ways that no other store can match. Some of my favorite budget-friendly items at Costco include:
- Giant freezer bags of breakfast sausage — these are so easy to pop into the air fryer in the morning and take minutes.
- Bulk pancake mix — we go through this stuff so fast.
- Bulk condiments — add up how expensive ketchup is and you’ll see why I love this.
- Syrup — gotta top all those pancakes with something, right?
- Paper products — you will not find paper towels, toilet paper, napkins, or paper plates cheaper anywhere else.
If I’m being honest with you, the Costco food court also makes me feel like the membership is a real treat. Eating out is so expensive with kids, but the fact that I can get them giant slices of pizza and ice cream for a couple of bucks is unheard of anywhere else!
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Avoid All the Streaming Platforms
One of the best things I did as a new mom was avoid paying for any sort of streaming entertainment. I will say this was a heck of a lot easier when my kids were little, but for the first 10-ish years of my parenting life, I paid for zero streaming services or cable. Instead, we:
- Watched only over-the-air TV (PBS is free, people!).
- Visited the library a lot for books, computer time, and activities.
- Borrowed DVDs to play in our car with an old DVD player.
- Stuck to free streaming, like Pandora or the old-fashioned radio.
- Bought an old TV with a VCR and watched old Disney classics with the kids.
Again, this is a lot easier to do with little kids, but I miss the simplicity of my life before everything required an app and a streaming subscription. Those small costs really add up.
Wait on Baby Items
If you are having a baby shower and loved ones want to shower you with gifts, by all means, add everything you want on the registry. But if you have to buy any of your own products, or are worried you won’t get everything you ask for on your baby registry, I would really recommend waiting a few weeks before buying baby products.
So many of my plans for what I thought I needed with my babies changed after they were born and I either wished I had different products or needed to buy something else I didn’t expect. For instance, one of my babies ended up in the NICU and couldn’t nurse, so I needed a different breast pump than I thought I would and it was extremely expensive.
Make sure you have the basics, of course, but there are a lot of baby products you might not end up using or needing, so it can be helpful to wait a bit if you can.
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Start Your Retirement ASAP
My husband and I started our family young, but one of the first things I did was schedule an appointment with a financial advisor to help us start saving for our retirement. We were only able to contribute $50 a month back then, but saving as early as possible can make a big difference later.
Even if you feel like you have no room in your budget, setting a small amount aside now is a smart financial strategy.
DIY Those Cake Pops
This one is silly, but if you’re a mom who likes her occasional Starbucks treats, but struggles with the price of the inevitable cake pop your kids beg for, try this hack: Save a Starbucks bag, then do a switcheroo with your own pre-purchased cake pop.
Chances are, you can buy an entire carton of cake pops for less than the cost of just one “real” cake pop from your local grocery store.
Make Your Own Grab-and-Go Snacks
This is another seemingly silly tip that I wish I had learned earlier, but thanks to TikTok, I finally started buying bulk products, like pretzels, crackers, nuts, dried fruit, and chips and immediately dividing them into bags for easy grab-and-go snacks for my kids.
I love the convenience of pre-packed snacks for my kids, but they’re always way more expensive. This is an easy way to save money and time.
Buy Generic Medications
I’m a registered nurse, so I’ve always felt comfortable only buying generic medications for our household. They have the same active ingredient and are sometimes 50% cheaper than name-brand versions.
Instead of Tylenol, look for medications with acetaminophen; instead of Advil or Motrin, look for generic ibuprofen. Same mechanism of action, lower price!
Buy Freezer Meat From a Local Farmer
If you have a larger family or have people you can split the meat with, buying bulk freezer meat from a local farmer can save you a ton of money. I admit I didn’t know anything about freezer meat until I married into a farming family, but it’s a great way to save on expensive cuts of meats and stock up on budget-friendly meats like ground beef.
You can also get meats that might fit your health goals, like pasture-raised or grass-fed beef, usually for far less than they would be sold in the store.
Don't Be Afraid of Credit Cards
As long as you pay off your credit card every month, there is no reason to be afraid of swiping your plastic. Using a credit card responsibly can help boost your credit score, especially as a young parent.
But the real beauty of a credit card is finding one that offers rewards and benefits. For instance, I have a 2% cashback credit card, so I earn cash back on all my purchases. Once I earn the minimum amount, I register to get the funds deposited directly into my bank account or have a check mailed to my house. It’s like free money!
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