Children cost money. Even though this aspect should of course not be the main focus, financial issues must also be taken into account when deciding whether to start a family. Although parents in Germany receive financial support through child and parental benefits, this is not always enough for low-income earners. Clothes, food, school equipment…the list of expenses for a child is long and for everyone involved, money worries quickly become a major burden. It is estimated that more than one in five children in Germany lives in a situation of poverty for at least five years, either permanently or recurrently. In addition, almost ten percent of children are affected by temporary poverty. For the children, this often manifests itself in cramped living conditions, unhealthy food or having to do without hobbies, school trips, vacations, etc. Meanwhile, the parents suffer from money worries, fears or a guilty conscience toward their children. A situation, therefore, that is not easy for either side and therefore to be avoided at all costs.
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Why Saving Money Is Always A Good Idea
For such family, the question of saving money does not arise at all. They have to turn every penny over twice anyway in order to somehow make ends meet. In such cases, a financial cushion is out of the question. Better earners are luckier, because they can and should build up such reserves. So even if the income is easily enough for living expenses, vacations, the child’s hobbies and all other expenses, saving makes sense. After all, there are no guarantees in life – not even with a supposedly “secure” job or a lot of insurance. Suddenly, however, an accident happens, incapacity to work occurs and the occupational disability insurance refuses to pay. Or the company goes insolvent and with it the job goes down the drain. This is not meant to scare people, but to sharpen their realistic view of why a financial cushion is important for every family. It relieves worries and fears about the future, even in difficult life situations. And then there are also topics such as old-age provision or equity capital for a home of one’s own.
Saving Money Does Not Necessarily Mean Doing Without
The interim conclusion is therefore: Every family in Germany should save – regardless of their income. Those who can, may of course afford a bit of luxury with their money, but saving is always a good idea. However, many people associate the term with something negative. For them, saving means doing without. A mistake, because there are many ways to save money in everyday life – without even realizing it. For example, household appliances with better energy efficiency can save electricity and thus money. If you also switch to a cheaper electricity provider, you quickly have three-digit amounts “left over” per year. Saving thus has nothing to do with renouncement and thus gives it even for better earners no more excuses not to consider the following tips.
7 Tips For Families For “Unnoticed” Saving In Everyday Life
- The first important keyword has already been mentioned: the energy efficiency class. It indicates how much electricity the appliance consumes and how expensive it is in terms of running costs. So anyone who pays attention to the energy efficiency of household appliances such as dishwashers, in addition to other aspects, saves a lot of money – and does the environment a big favor at the same time.
- The second point has already been briefly touched on: switching providers for electricity, but also for gas or contracts such as smartphones, can save a lot of money. It is therefore worth checking current contracts at least once a year, comparing prices and switching providers if necessary. The same applies to insurance policies, such as car policies.
- Many people tend to make impulse purchases that they regret afterwards. They wish afterwards that they had rather “done without” it. A simple trick can help here: Smaller purchases should first be thought over for ten minutes, larger ones even for 30 days. Because the longer one thinks about it, the more reason will decide and thus spontaneous bad purchases belong to the past.
- While people with low incomes often pay attention to every cent when shopping for the week, many higher earners don’t even know what the individual products cost. They throw everything into the shopping cart at random and let themselves be surprised at the checkout. Nevertheless, it makes sense and is also exciting to henceforth take a look at the prices and buy cheaper instead of more expensive products. After all, most individuals don’t care which butter, pine nuts or pasta they buy. But the price differences here are sometimes considerable and, as we all know, small fry make a mess. So mindful shopping can save a lot of money a year.
- Second-hand goods are particularly useful for children. After all, they grow out of their clothes in record time or quickly lose interest in certain toys. Buying clothes, toys and products such as children’s furniture or prams second-hand is therefore not only much cheaper, but also more environmentally friendly. And the child doesn’t care where the toy or jeans come from anyway, as long as they are still in good condition.
- The timing of certain purchases also has a big impact on the price. Especially larger purchases such as the new smartphone or even the stroller should therefore be purchased anticyclically – for new purchases. As is well known, many products are more expensive in the pre-Christmas period, for example, and are discounted after the holidays.
- Finally, it may be worthwhile for married couples to change their tax bracket. At the latest when the pregnancy becomes known, it should be checked whether the woman is in tax class V and if so, to what extent a change to tax class III makes sense. In many cases, this will leave significantly more net income and the woman will also receive more parental allowance.
With these simple measures, a lot of money can be saved every year, which can then serve as a financial cushion or fulfill the greatest wishes of the offspring. In the end, there may still be enough money left over for a new hobby for the children or a joint family vacation at the seaside – and all that without “doing without”!