Easy ideas for families saving habit

Log your spending habits for one month

It doesn't take a miracle to save money. It's as simple (and as difficult) as figuring out how to spend less than you earn. But before you can cut your family's spending, you need to know exactly where the money is going.

So, for the next month, keep a log of all your daily, weekly, and monthly expenditures. Find an easy way to record what you spend as you go, whether you use an app on your phone or a pocket journal. And prepare yourself for some sticker shock.

Once you see what you spend your money on, you can make decisions about what's a must-have for your family and what can be cut.

That morning latte you buy on the way to work can add up to a tidy $60 a month, or $720 a year, or $7,200 in ten years – a nice chunk of savings. If your drink of choice is bottled water, fill your eight daily glasses at the tap instead and you could pocket up to $1,400 a year. 

And those impulse baby clothes purchases you put on your credit card? Tack up to 20 percent more onto what the price tag says. That's how much interest charges could cost you unless you pay the bill in full each month.

You don't have to go without caffeine, and you can still dress your baby in adorable outfits – just be smart about it. 

If you can't afford the cafe on the corner, keep a stash of ground espresso at work and make your own pseudo-lattes (microwave ovens do a respectable job of steaming milk). Never leave home without a full, reusable water bottle. Wait for those baby clothes to go on sale, and give yourself a cash limit when you shop.

Pay yourself first

It may seem counterintuitive, but the secret to getting into the savings habit is to put yourself first. That doesn't mean buying every CD or kitchen gadget that catches your eye – it means including yourself among the regular creditors you pay every month.

Set some realistic long-term goals and then "pay" yourself by putting money aside regularly in a savings or investment account. If you wait until the end of the month to see what's left over after paying for essentials and shelling out a few more dollars here and there for extras, you'll probably find that there isn't much left.

Don't give yourself a choice. Set up your retirement, emergency savings account, and college fund with automatic monthly transfers – no matter how small – from your paycheck or checking account. Like nightly tooth flossing, regular saving is a healthy habit that accrues over time and becomes a routine you can't live without. And at the end of each month, you'll have the immediate gratification of knowing you socked something away for the future.

Stagger your savings due dates

Most IRAs, college accounts, and other savings options allow you to pick your own date for automatic withdrawals from your checking account or paycheck. Stagger these dates to make sure all the money isn't transferred out of your account on the same day.

If you're paid every two weeks, tie one withdrawal to each payday. If you're self-employed and money comes in throughout the month, pick a couple of dates in the middle of the month at a time when you're not paying other bills.

Pay down debt

You've heard it before, but it still may seem hard to believe: Paying off your debt is one of the best ways to save money. That's because the interest you pay on most loans (particularly credit cards) is much higher than the interest you earn with most savings options. So get rid of as much credit card, student loan, auto loan, and other personal debt as you can (a home mortgage loan should be your one big debt), and then start saving.

Be your own loan officer

When you finish paying off a loan, keep making the monthly payments – to yourself. Put them into a savings account or, better yet, set up an automatic withdrawal for the same amount into a higher-yield investment account.

Motivate yourself with a big-ticket goal

Determine what you really want (a new sofa, a large-screen TV, a vacation) and what it will cost, then set a realistic goal, such as giving yourself six months to save for it. Cut out pictures that illustrate your goal and put them on your bulletin board at work, on your refrigerator at home, and in your wallet. Every time you think about buying new shoes or towels, ask yourself whether you want or need them as much as what you're saving for.

Open a savings account you can't touch

Save for even bigger purchases, such as the down payment on a house or car, by putting chunks of savings into certificates of deposit (CDs). These accounts offer virtually no risk, they earn higher dividends than plain old savings accounts, and the money must stay in the account for a predetermined period of time – so you can't get at it whenever temptation strikes.

Start a loose change jar

Put a jar – preferably a large one with a narrow mouth, so you can't get your hand into it – in a prominent place and empty your pocket or wallet change into it at the end of the day. When the jar is full, roll the coins in wrappers you can get free at a bank or credit union.

Inexpensive coin organizers, tubes, and trays make the job faster and can turn it into a fun family activity for kids old enough to handle coins. At the end of the year, this found cash could add up to enough money to pay for a weekend getaway, a holiday gift, or a health club membership.

If you can't stand the thought of rolling coins, find out whether your bank offers coin counting for free. Steer clear of  the change-counting machines available at some supermarkets – most charge a fee of almost 10 percent.

Sock away surprises

Anytime you get an unexpected windfall, such as a tax rebate, holiday bonus, or cash gift, put it into your savings account. You weren't counting on this money as part of your regular income, so don't spend it as such. 

Think of it as your Europe or new car account. Or, if you haven't gotten out of debt yet, use it to pay down credit cards and loans or make an extra mortgage payment toward the principal (which reduces the interest you pay over the life of the loan).

Step off the gas

With high gas prices apparently here to stay, it's pretty obvious that the less you put in your tank, the more you can put in your change jar or savings account. If buying a more fuel-efficient car isn't feasible, figure out how to cut back on your regular driving.

Carpool to work or preschool if you don't already. Plan ahead and cluster errands instead of constantly jumping in the car. Walk to your destination or from store to store whenever possible. 

And for your next vacation, don't overlook the gems in your own backyard. Consider exploring your own state instead of driving across a couple of time zones.