wish. “If what we spent on the kids
last month seemed high, we can just
go into the category on the computer
and see where the money went,” says
Samantha Harvey Saxena, who uses a
budget tracker app called Koku.
Samantha decided to implement
a budget about a year ago to monitor
spending. “Initially it was an exercise
to see just how much we were
spending, because we had no idea,”
she says.
Her financial reports revealed a
few surprises – like the extra $1,000
spent at duty-free while travelling.
Another discovery confirmed
suspicions on how much money
was spent on the children, between
school fees, “which we can’t do much
about,” to unnoticed medical costs, to
extracurricular activities and treats.
“A hundred dollars here and there
with two kids becomes a lot very
quickly,” says Samantha.
The tracking has helped them
tailor their spending in a number of
ways. Samantha says she discovered
vaccines were cheaper at private
hospitals than at a nearby practice.
She also fixed a sum for discretionary
spending on the children, easing her
mind quite unexpectedly. “If you have
a budget that you’ve decided is more
than enough, you avoid feeling guilty
saying no when they ask for more,”
she says.
Fixing the magic number
To implement a change in spending
habits, identify monetary goals with
your partner. Planning for children’s
education is high on many priority
lists, as is setting up financial security
for old age. But factor in the fun stuff
too, like how many holidays you want
to take each year. Work towards
compromise on both sides of the
marriage to stop resentment building.
Emily Baxter, a mum to twins,
saw flight costs boom once the
children were past two years old. She
wanted to make sure she could go back
home to the UK at least yearly, and
imaginatively readjusted her budget
to allow for it. “I realised how much
I spent in coffee shops and eating
lunch out,” she says. Trying to keep
the twins active and social came with
a hidden financial commitment. She
calculated that just reducing her coffee
habits for a year gave her enough for a
child’s ticket. “Which is mad, really,”
she says.
Big incentives, like Emily’s, help to
keep resolve high. But weigh carefully
what you can comfortably cut. A spa-
lover who sacrifices every treatment
could become seriously de-motivated,
but that same spa-lover might be
happy to give up her lattes if it means
she can keep her facials and massages.
Richard Bolton, a senior
consultant with The Henley Group,
and a new daddy to a baby girl,
splits his spending into weekday
and weekend budgets. His weekday
spending is usually fairly fixed, while
his weekends are where he loosens
his purse strings on eating out and
entertainment. “You may budget
$2,000 for weekly expenses, like food
and transport, and $3,000 for weekend
expenses, like eating out, kids’
activities or treats, giving you a budget
of $5,000 for the week, or $20,000 for
the month,” he says. Richard takes out
a weekly allowance at the start of the
week, and then withdraws cash for the
weekend separately. “That way, if I’ve
run out by Sunday I know it’s time to
go home,” he says. He advises clients
to get into this habit to monitor money
and incorporate a budget comfortably
and successfully.
Making the grade
Staying home is a great money saver.
Take playdates in turns at home or go
to a local playground. It also pays to
shop local, says mum Eva Wong, since
premium costs on imported products
are high. The market is a great place
to begin. Often fruits and vegetables
from the same depots are sold at both
supermarkets and markets, but are
cheaper at the markets – especially
If you have a budget that you’ve
decided is more than enough, you
avoid feeling guilty saying no when
they ask for more.
October 2013
45
