Finance

How Moms Manage To Balance The Budget

Posted: 1/7/2012

Smart budgeting is essential for planning a family’s financial future.

(NAPSI)—When it comes to balancing family budgets, moms are often the CFOs—and it’s not always easy.

To start, few moms realize how much it actually costs to prepare for a baby and raise a child.

According to a recent survey from Chase Card Services and Parents, 62 percent of moms of children of all ages feel that raising a child is more expensive than they had expected. The Chase Blueprint-Parents Survey found that, in response, moms are taking a proactive approach to saving money and managing their spending. A clear majority of moms attested to couponing (87 percent), stocking up on sale items (74 percent) and better managing their credit cards (64 percent).

The survey, conducted among 1,025 readers of Parents and American Baby, also revealed that moms are developing budgets and employing a variety of tactics to better manage their families’ finances. Three-quarters of the moms surveyed at least occasionally use monthly spending plans or budgets, and 52 percent report that they regularly stick to them. Another way moms manage finances is by using free financial planning features like Chase Blueprint, which is available on many Chase credit cards.

“When it comes to making purchases for your children, it is important to have plans in place, particularly when you are borrowing money,” said Caryn Kaiser, general manager of Chase Blueprint. “With Blueprint, moms can design simple plans to pay for family purchases both large and small, helping them stay on track with their long-term financial goals.”

The survey also found that virtually all moms make their own financial sacrifices for their children by cutting back spending for themselves once their child is born. In addition, among those moms who feel raising a child is more expensive than expected, 61 percent made drastic cuts to their personal spending as a way to counterbalance those extra expenses.

Parents also often have trouble saying no: Even with the uncertain economy, most moms continue to spend on non-necessity items for their children, in particular in the child’s first two years. More than 80 percent of moms continue to spend on non-necessity items for their kids at least some of the time, with one-third describing themselves as doing this often. According to the survey, families spend an average of $1,400 on their child’s nursery and baby gear, and more than one in five spend more than $2,000.

For more information on planning a bright financial future for yourself and your family, visit www.chase.com/blueprint.