How to Budget with a Big Family

How to Budget with a Big Family

Budgeting for a large family certainly has it challenges as there are some things that cost more because there are more people living in the house. However careful planning in all areas of expenditure can mean that the budget will be a success.


General household bills that exclude the mortgage and utilities will be standard for most people regardless of the size of their family.


Large families need a large house and so mortgage payments are likely to be higher. These can be reduced if the deposit is large enough but mortgage payments are likely to be the biggest expense in the budget.


As the home is likely to be larger, utilities such as electricity and water may also be higher. People tend to find that they can save money with a tankless water heater. Using energy efficient light bulbs and not leaving appliances on standby can also help to reduce electricity costs.

Cell phones may also be a large expense, especially with older children and teenagers that may want phones of their own. One way to save money here could be to try and get one contract that gives multiple handsets as this can work out a lot cheaper. Parents can also cap their children’s usage so they are not faced with any unexpected bills.

If people are able to take out health insurance through their employer then it is usually possible get the whole family included on the policy by just paying a little extra. This is usually a lot cheaper than taking out a separate policy.

Life insurance is considered essential for all families. For large families the cost of a policy may be a little higher because they are likely to feel the financial impact of losing a parent more keenly. There is also the fact that a larger amount of money will be needed to pay off the mortgage.


The more people that there are in a household, the higher the food bills are going to be. People with large families often say that their grocery bill is one expense that they feel they have little control over. The cheapest way to cook for a large number of people is to cook everything from scratch and not rely on processed food. There may be items that can be bought in bulk from stores such as Costco which can reduce the total grocery bill.

Travel And Vacations

Travelling with a large family can be extremely expensive, especially if travelling by plane or train where everyone has to have their own ticket. There is also a high chance that more than one hotel room will be needed.

Travel hacking is becoming an increasingly popular way to make travel more affordable. This involves using credit cards that give air miles as rewards and then using these miles to save money on air fares. It does require a lot of hard work to make sure that the best deal is achieved on each card but the savings that can be made make this effort well worth it.


It is likely that a large family may need at least two cars and they will both have to be used whenever the family travel anywhere together.


Many large families make the decision to have one parent stay at home because the costs of childcare are so high that any wages earned are wiped out by this childcare.