Parenting in a Recession

The current economy is in rough shape; prices are up, salaries are down, layoffs are common, and everybody’s talking about money. And parenting is expensive. So how do you make sure you have enough money to support your family? This is when personal financial literacy skills really come in handy. Use some of the tips below to help you maintain your financial footing in tough times.

Personal Financial Literacy Tips for Parenting in a Recession

• Don’t buy (and encourage others not to buy for you) a lot of new clothes or toys for your babies or very young children, as they will be outgrown in a matter of months. Many people are willing to donate old baby clothes and toys to friends or acquaintances, and you can also find a large number of these items at places like thrift stores or garage sales.
• Maximize your available time, energy, and skills by trading services with friends or family for such needs as childcare, meal preparation, or house cleaning. This is also a great way to build a network of caring adults and a close-knit community. Talk about money management within this network and help each other out when you can.
• Take advantage of places like consignment and second-hand stores. If your child needs sports equipment, toys, or certain articles of clothing, you may be able to get a really good deal if you shop around for used items.
• Some schools offer prepackaged school supply kits at a discounted price, and often use the proceeds to fund classroom activities and other needs. Many congregations, food pantries, and local service groups also collect school supplies to donate or sell at affordable prices. Find out if your community has programs like this, and take advantage of them if possible.
• Even though it can be tough, talking about money management with your kids is more important now than ever. There are many lessons that can be learned during a recession, so take advantage of opportunities to increase your kids’ money management skills and personal financial literacy.

• For more personal financial literacy tips, read Shoestring Parenting from Today’s Parent.

During an economic downturn, families may find that they struggle with their finances. But through careful planning, talking about money, and prioritized spending, many families have been able to not only make it, but thrive through these tough economic times. Don’t forget to stay positive, even if it gets difficult—by using your personal financial literacy skills, you’ll also be teaching your child the necessary skills that he or she will need in the future.