Wise parents ensure that they plan carefully in order to give their family a stable home and all the basic needs are met. Loving and caring for the children dos not mean giving them the best of everything and spending money unnecessarily. The cost of living is gradually rising and raising a family is no longer cheap. Hence, money management is important when you have a family to support.
The following is about a family living frugally on a single income. The Chan family has two young children to support (1 and 2.5 years old). Mrs. Chan is 32 years old and stays at home full time to take care of the children and the household responsibilities. Mr. Chan is 35 years old and works as an engineer earning roughly RM3500 per month.
They live in a bought apartment right after marriage and Mr. Chan had no problem paying for the loan then. However once the children arrived, Mr. Chan realized that his single income could barely support his family. He even had to trade in his Toyota Vios car to the more affordable Perodua Myvi. Mrs. Chan has to be very careful with the household spending and really plans her groceries for the week to ensure it stays within the budget. The budget must also cover milk powder and disposable nappies for the young children.
The Chan has stopped going out to eat altogether and mostly eat at home. Mr. Chan even has to pack his lunch most of the time from home and the food outside is getting more expensive. He is worried whenever there is an emergency in the family. For example, if a member of the family falls sick or if the car breaks down. The small amount of money he puts aside each month will be used up then to meet the unexpected expenses. The Chan know that it is important to save some money now as when the children gets to school going age, there will be school expenses to worry about.
Mrs. Chan is already thinking of finding a job once the children go off to school. Her other option is to do a part-time job to help boost up the family’s income. The good thing about the Chan family is they do not have any other debts except for the mortgage and car loan. Although Mr. Chan has a credit card, he uses it sparingly ensuring that he clears the balance each and every month.
I will be posting similar stories in the future based on the idea of “Frugal Parenting”. You are welcome to post your comments about the subject.