4. Do not buy ANYTHING that is not necessary to living

Toys and junk food and movies, oh my.  All of these things can make life fun and more entertaining.  But none of them are necessary to life.  If you are trying to save money, you need to stick to the basics and only the basics.  We are always taught that the necessities of life are food, clothing, and shelter.  That is true to a point.  We do need food.  We don't need overpriced food, junk food, convenience food, etc.  We do need clothing, but it doesn't have to be name brand, or the latest fashion (or even brand new!).  We do need shelter, but it doesn't need to be a dream house.  It does not need to look like a magazine.

This is one of those categories that you can apply to different degrees.  If you are looking to save a few dollars here and there, just cut out a little of this spending.  If you are in a desperate situation, you need to take this to an extreme.  This is a broad topic, so I am going to focus in on one area...toys.

Your children do not need more toys.  No matter how much your children beg, plead, and bargain, don't give in to them.  The less they have the more they will appreciate it.  Children do not have the ability to see long term consequences like adults do.  They only know the here and now and they want it NOW.  They don't know that the new Playstation or bicycle that they just had to have was paid for from the rent/mortgage payment.  They only know that it's in front of them now, so they must have it.  Your son or daughter may be pretty mad at you if you don't give in.  They may pout or give you the silent treatment.  Oh well.  You're their parent, not their friend.  If you are any good at parenting, it won't be the last time that they get upset with you.  It's a great way to teach them how to effectively handle disappointment in life.

One of the biggest toy myths that we fall for is at Christmas.  Yahoo! Finance estimates that Americans spent $854 on average for Christmas gifts.  If you are filthy rich and have the money to do that, more power to you.  (I'll send you my address and you can feel free to shower me with expensive gifts! :)  I'm guessing though, if you are filthy rich, you are most likely not reading blogs about pinching pennies.  Don't fall for the hype.  Your kids don't need a bunch of presents to open on Christmas morning to make their lives complete.  Not to mention, if you come from a family like mine, they get enough presents from relatives that they really do not need anything more.  We usually give our kids two or three small presents for Christmas and then go over to my in-laws for the big family Christmas. My kids get so many presents, they are on overload.  My husband and I take some of them and hide them away until weeks, or even months later.  Then we can bring one out and it is a brand new toy that the kids can get excited about.  New toys that don't cost anything for mom and dad.  Perfect!

This trick really only works on the younger ones because they forget more easily.  My husband and I write the thank you cards, so they really don't know what is missing.  Once they get older, this will probably not be a viable option!

Just keep in mind that even though your children may not consciously know it, they would rather have security than a room full of entertainment.  Be the best parent you can be and give them what they really want!