I've found that creating a joint family wallet specifically for childcare costs has really helped us manage expenses. We use an app to track each other's spending and make adjustments as needed. This way, we're all on the same page with budgeting and have clear expectations about what can be afforded.
One of our highest priorities is saving for educational expenses, like tuition or school supplies. However, we also set aside a small budget for kid-related entertainment, like outings to kids' museums or events they're interested in, because research suggests those experiences are beneficial for their cognitive and socio-emotional development.
To balance the family's finances and raise our kids on a budget without sacrificing their well-being or experiences, we've found that it's essential not to have separate finances from theirs. One strategy that works best for us is setting aside 50/30/20 each month - 50% of household income goes toward necessary expenses like rent, utilities, groceries, and savings; 30% covers discretionary spending like entertainment, hobbies, travel, debt repayment, or home renovations, which we allocate in part to supporting our kids' needs through budgeting. The remaining portion is allocated for short-term savings goals or big-ticket items that we need but had been putting off; such as repairing household appliances or fixing the car.
We've also prioritized teaching them about money and encouraging financial responsibility from a young age, which helps ensure they're not burdened by debt and are empowered to make smart decisions about their own financial futures. Our approach has worked well so far since we've always found ways to incorporate experiences our kids could enjoy while staying within budget constraints – which gives us peace of mind knowing they grow and learn while managing expenses effectively without sacrificing anyone's happiness or security.