The 2025 New Year's Eve numerals are displayed in Times Square in New York City, on Dec. 18, 2024.Julia Demaree Nikhinson/The Associated Press
The economic climate in 2024 was tough, and there are few indications things will get better in the coming year.
Whether you make New Year’s resolutions or not, early January can be a great time to set intentions for our finances in the year ahead. As a parent of young kids, I’m optimistic that we can do things differently in 2025 to save money and plan for the future.
First, let’s resolve to buy second-hand when possible to ease our household spending and reduce our consumption. From buying on local Facebook and Nextdoor community groups to shopping at consignment stores and garage sales and on sites such as Rebelstork, which features returned items and overstock products, you can usually find any gear or clothing you need without buying new.
Most of the pricey baby goods I own, from a SNOO bassinet to a MamaRoo baby swing, were purchased used or passed on from peers who were done with them. This can save hundreds if not thousands of dollars – and can even become a side hustle if you’re the one selling your gear when you’re done with it. The bonus? It declutters your home.
Next, let’s resolve to pay our kids first. The first personal finance book I read was The Automatic Millionaire, which was all about the power of “paying yourself first” or setting up automated savings for the future without even thinking about it.
I’ve taken the same approach with our daughters’ future savings. I have an RESP for both of them and I’ve automated monthly deposits. Also, if we receive cash gifts from relatives for birthdays or holidays, I immediately deposit them so I can’t spend that money on anything else.
While it’s tempting to pause or reduce those automated deposits in high-expense months, consistency over time is key to leveraging the power of compound interest. Even if it’s just $20 a month, those savings will add up over two decades.
Next, let’s resolve to make buying decisions based on what our kids need, not what our social circle or our impulses demand. In a recent column, I highlighted the social pressure and unrealistic expectations set by parents on apps such as TikTok, and many commenters suggested just not opening TikTok.
While that’s sound advice, it’s dismissive of the fact that many millennial and Gen X parents are digital natives who live online. We use social-media apps to consume news, stay connected with friends and family and get inspiration for everything from recipes to our style.
So my resolution isn’t to cut out social media, since I get a lot of value from it; rather, it’s to remember that most creators on social media promote rampant consumerism, and just because we see something we want doesn’t mean we need to buy it.
In 2024 I started an iPhone note called “Things I Want to Buy,” and every time I saw something I coveted – whether for myself or my kids – I added it there, on the condition that I couldn’t actually buy it for at least a week. Most times, it stayed on the list instead of being added to an online shopping cart, so I commit to pausing before buying in 2025 as well.
Next, let’s resolve to lean into free stuff for our kids. As a big reader, I’m surprised how few people tap into the local library – they don’t just lend books, many also lend provincial park passes, activity kits, instruments, movies and more. Depending on where you live, there is usually an abundance of free activities for kids, from parks to free hours at museums, local markets and festivals and free activities for kids at libraries.
It’s also free or very inexpensive to organize play dates at our kids’ friends’ houses, to go for a hike, hit the local beach or work on a puzzle or craft. My kids are so young that what makes them happiest is spending time with Mom and Dad, so l also resolve to focus more on quality time, which is of course priceless.
Finally, let’s resolve to spend not just on our kids and their well-being but also on our own. Self-care doesn’t have to be expensive – for me it usually includes a free library book and a coffee – but prioritizing time for myself, with my husband and with my friends, is a luxury I need to be a better parent.
Erin Bury is the co-founder and chief executive officer of online estate planning platform Willful.co. She lives in rural Ontario with her husband and two young children.
