Tips for Managing Your Finances

Knowing how to manage your money is an important skill that can help make sure you have enough to take care of your day-to-day living expenses and achieve your goals. It also can help you feel better prepared to deal with unexpected expenses or emergencies (which are bound to happen when you have kids). 

Six Ways to Manage Money

1. Prioritize and set goals by evaluating how you spend your money. Think about what is most important and what is a “want” versus a “need.” Set family, educational, and financial goals and plan the resources you might need to achieve them.
2. Understand the details of your paycheck. If you are employed or receiving paychecks, review taxes that are withheld and make sure to ask your employer questions if something on your check does not seem right (mistakes happen).
3. Open a personal bank account, if you do not have one. Bank statements can help you budget by allowing you to track your spending. Some accounts require a minimum balance to avoid monthly fees.
4. Create a monthly budget. This budget can list your income (how much you make) and necessary expenses (money spent), such as phone bills and rent. To budget accurately, save your receipts and use your bank statements to track your expenses for one month – this can help you track how much items like diapers or groceries cost. If you need help making a budget, you can Google “free budget templates.”
5. Set aside savings. Do this if you have extra money at the end of each month after necessary expenses. Having savings can help you with unexpected expenses (such as a trip to the emergency room) without impacting your monthly budget.
6. Good communication with a partner or co-parent is key. Finances are one of the topics parents argue about most. Spend some time at the end of each month reviewing expenses to see if changes need to be made to your budget. 


Tips for Saving Money

  • Minimize the need for paid childcare, if possible. Try planning your school or work schedule with your partner (if you have one) or see if a family member can help. If you need childcare, some states offer financial assistance.
  • Stop yourself from making unnecessary and expensive purchases. Before purchasing something, always ask yourself whether it is necessary or if it can be used for a long time. Also, compare item prices at various stores before purchasing.
  • Look for discounted and free items. See if family or friends with children have items that they no longer need. Also, try thrift shopping or look online (such as “buy nothing” groups on Facebook where people give away items).
  • Purchase items that can grow with your child. An example is a crib that can transform into a toddler bed.
  • Plan free or low-cost activities. Take a walk with your baby in a stroller, visit your local library or park, or try yoga with your toddler with free workouts on YouTube (see our Age-Appropriate Activities section for more ideas).

Credit Cards and Credit Scores 

Credit cards can be helpful for large, unexpected expenses you might need and for building your credit score (which is a rating of your responsibility with credit). 

A good credit score can be important if you want to rent an apartment on your own or purchase a car. Tips for using credit cards: 
  • Apply for a credit card that gives you money back on purchases.
  • Avoid using a credit card if you cannot afford buying something with your own money (such as wants) because you will have to pay it back. However, some large expenses may be unavoidable and have to be paid back over time.
  • To build credit, try using your credit card only once a month for small purchases, such as gas or food, and then pay it in full at the end of the month.
  • Pay off the credit card in full each month to avoid paying interest. Try to always pay on time to avoid late fees.
  • Try not to spend more than 30% of your credit card limit to maintain a good credit score. For example, if your credit limit is $900, keep your spending under $270.

Helpful Resources 

Check out local, state, or national programs that can help with groceries, utilities and housing, among other needs. 

WIC: Provides food assistance to eligible women and their children up to 5 years. To apply, find a local office.
SNAP: Helps low-income eligible families access nutritious foods. To apply, find a local office.
TANF: A federal program that provides eligible families with temporary financial assistance to fulfill basic needs. To apply, find a local office.
Low-Income Home Energy Assistance Program (LIHEAP) helps eligible low-income households pay electricity bills.
HUD: This website helps you find organizations near you than offer affordable housing assistance to those who qualify.