Savings Strategies for Fathers and Families

Prior to the recession of 2008-2009, American families actually had a negative savings rate – which means that they were spending all of their income and borrowing a little each month to get by. But since the recession began and families began to live more frugally, the savings rate in the U.S. has been just over 1% and is projected to increase to 8% within four years.

But it can be tough to increase our personal and family commitment to building our savings. It requires some very real discipline and careful budgeting to make it happen. Here are some tips and tricks to increasing our savings and getting our family finances better under control.

Create and live within a budget. The most important technique to find money to put into a savings account is to develop a realistic and manageable family budget. Start with a good estimate of your family income for each pay period, and then plug in your critical needs like housing, food, and utilities. With what's left, pay other bills and then make sure part of goes into savings. Without a budget, you may spend money on things you just want but don't need, sacrificing your savings. I recently heard a religious leader comment that if the three most important words in the English language are "I love you," then the four most important must be "We can't afford it."

Pay off consumer debt. Develop a family and personal debt elimination plan. Getting rid of high interest rate debt will open the door to putting the money you would have spent on interest into the savings account.

Save by payroll deduction. If possible, have your employer withhold some funds from your pay check and deposit the money directly into a savings account, credit union account or money market fund. If it comes out before it shows up on your pay stub and in your checking account, you are less likely to spend it.

Plan ahead for grocery shopping. Living within your grocery budget is easier when you plan ahead. Make a comprehensive list of what you need to get through the next period of time, and then stick to it. Buy store brands rather than name brands for extra savings. Any money you spend at the grocery store that is less than what you budgeted can get transferred painlessly to your savings account.

Take advantage of employer programs. Many employers have a matching program for employees who save. For example, if you put 4% of your income into a 401k account, your employer might match it at the same rate or less. Don't let your employer's money for that match go to waste because you don't participate.

Get a change jar. On my dresser is a change jar, into which each night goes any coins in my pocket. Even though I often use a debit card, there are times when I use cash. So I only use paper currency, and drop the change into the jar. The money from the change jar gets emptied a couple of times a year and generates about $200 toward Christmas savings. You'll be amazed at how fast this one adds up and it is painless.

Use coupons, rewards and bargains. A little careful planning will help save money on the things you would otherwise buy at full price. You can find some great bargains at the About.com Frugal Living Forum and at Frugal Fatherhood.

These and other good ideas from fathers who are committed to savings will help you and your family find ways to spend less, save more, and build your family's financial stability.