What are you saving for?

Time to check in... how did February go? Did you take the 20% reduction challenge? Did you reduce your spending? Were you able to go through your clothes and other belongings and find things to donate?

I practice what I preach and am pleased to report that we did indeed cut spending by at least 20% in February. No new clothes or shoes came into our house. We didn't buy any gifts or random "wants" in February either. We stuck to our goals and no one is any worse for it.

Groceries were down only about 15%. However, we nearly cut out our eating-out budget all together. (One night we had Chinese food after out of town hockey games.) We even skipped take-out with the grandparents and instead bought a big family size lasagna at the grocery store once, and made ribs in the crock pot the other time.

Now I did have Starbucks three times in February. There has to be some small rewards. Two of those times came off a gift card I had previously received, so I don't even count them. LOL.

Most importantly, to me, I got through that laundry pile and managed to donate 7 boxes of clothing to the second hand store. I did keep the very best of the kids' clothes for a friend.  The best part about this "chore" is a genuine reduction in laundry. The way I look at it, my kids only wear about 6 different shirts and 4 pairs of pants right now anyway, why do they need 30 that they "sort of like" or are old, in their closet to choose from? With fewer clothes in the house, we have to do laundry more frequently but that's actually a good thing. It doesn't pile up and make a big headache or mess.

A reduction in "stuff" and a reduction in bills is fantastic. But ultimately, what are you saving and what are you saving for?  When it comes to laundry, you can be certain that less laundry means less water used and less detergent. It also means less personal time and stress on that chore. It can free up more time for cooking, or baking or enjoying outdoor activities.

Financially, I'm saving for vacations and to put together a better rainy-day fund than currently exists.  I'm also teaching my kids to value their money and to spend it after careful consideration. If it takes "chores" (for them) to earn money (allowance) then they understand better that what they spend that money on better be worth it.  And kids learn a lot when you make them an active participant in grocery shopping. When I tell them they can spend $5 on snacks, you better believe they look at the prices and try to get the most for their money.

On a related note, Bank of Montreal just announced a great deal for kids. For youth under 16 who open up a savings account at Bank of Montreal, in March and April, they will give you $25. You have to put your own $25 in first, and maintain that minimum balance for at least 60 days.  But isn't that a great incentive for your kids? Bank of Montreal will match their first $25 in savings!  Wouldn't that be amazing... to help them watch their savings grow as they do the same?

Here's the link to check it out : Bank of Montreal Kids' Savings Offer