15 Effective Money Saving Tips for Moms in the UAE
Raising a family in Dubai can be challenging, but some proven money saving tips for moms make managing finances and preparing for unexpected events easier.
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Living in Dubai can feel like a rollercoaster ride for expat moms. Even though most expats in the UAE may have more disposable income than they did in their home countries, living expenses in the Emirates are high. So, when it comes to raising a family here, are there any money saving tips for moms that actually work?
In fact, there are plenty, and it's important to understand that saving money is no magic trick; rather, it requires taking small yet firm steps toward financial stability, as well as knowing the tricks to frugal living without losing quality.
High cost of living, education expenses, healthcare costs, housing costs, debt and loans, childcare expenses, and limited access to financial products are all challenges many expat moms in the UAE have to deal with regularly.
For that reason, in this article, we’ve compiled a list of simple, applicable, yet effective money saving tips supported by professional advice from seasoned expats and financial experts. You’ll learn the following 15 money-saving tips for moms:
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Living in the UAE can provide an amazingly high quality of life for your family. But for some moms, it comes with an overload of emotional labor associated with ensuring your family can live well despite high costs.
Although it may seem daunting at first, setting up a savings plan is a powerful first step to help moms save more money in the UAE. The following steps can make the process easier:
Financial experts advise using the 50/30/20 rule, where 50% of the income or salary will be dedicated to essential expenses such as house rent and groceries, 30% for non-essential expenses such as shopping and hobbies, and 20% for savings. Using a separate bank account for monthly or essential expenses is also advisable.
Life is full of surprises, and living in the UAE is no exception. Sudden repairs, job loss, or unplanned medical expenses can shake a family’s finances.And in some cases, they can cost a fortune, negatively affecting one’s quality of life. The urgent yet undesirable solution would be borrowing money at high-interest rates to cover the costs.To avoid this, having an emergency fund would provide the freedom to navigate unexpected circumstances without relying on credit or loans.
Starting an emergency fund plan includes some essential steps, such as:
Tuition fees are one of the biggest expenses for families living in the UAE.Annual fees can vary depending on the grade and curriculums, but they typically cost up to 15% of household income. School fees can, in general, range from 20,000 AED up to more than 100,000 AED.
Source: Schooling fees as a percentage of income in the UAE.
Such a high expense is a heavy financial burden that can be reduced by following some tips, such as:
Finally, you should check to see if your employer can help with school fees. “The first thing to do is check employment packages carefully,” says Alison Soltani, CEO and Founder at Leap Savvy Savers. “Sometimes, it's more beneficial to take a lower salary if a discount off school fees is provided by the company.”
Source: Dubai school fees
The easiest and most effective trick for a money-saving mom is staying home and enjoying time together!Actually, stay-at-home moms, by doing the usual homework, save roughly AED 13,000 monthly, an impressive number considering the average current salaries.
Adding some exciting activities will make staying at home more enjoyable for moms and their families, such as having home games that gets everyone involved, like arts and crafts sessions or a family movie night with delicious homemade snacks.
Additionally, inviting some friends, especially if the kids attend the same school, would be a great opportunity to cut costs by arranging friend gatherings, scheduling kids' pickups from school, saving on gas, etc. “Children remember what they did with you and their friends, not what you gave them,” says Steve Cronin, Founder of Dead Simple Saving. “Research has backed this up time and again.”
Get the children involved in saving by teaching them about money and how to use it wisely.As a mom in the UAE, it might take extra effort to educate them about how to control spending money due to the highly commercial environment they’ll grow up in.
However, start training them early, try to simplify finances, and involve them in setting saving goals. Teach them to separate needs, such as food, and wants, such as new toys, and understand that they can’t always have what they want.
Having kids, especially newborns, is an unforgettable experience, and most new moms can’t resist the urge to buy them new clothes and, as a result, increase expenses. Experienced moms have a different opinion, especially with the rate the kids grow would waste the new clothes for nothing. Some won’t even be worn!
Don’t overbuy things for newborns. Adopt the rotation rule, and rotate clothes, toys, and shoes from the older children to the youngest. It’s easier to convince the youngest to get the “Big Child” clothes and even be proud of it.“You don't have to show your love for your child by buying them everything you can find and everything they want. Is that really helping them in the future?” says Steve Cronin, Founder of Dead Simple Saving.
“There are so many second-hand markets in Dubai with high-quality clothes, books and toys. Mattresses, car seats and toothbrushes should be bought new - but that's about it. Your child won't care where something came from.”
Food is undoubtedly the most significant expense for moms, especially when caring for big families. Therefore, reviewing the grocery list and adopting good shopping habits is crucial to save on monthly expenses. Avoiding wastage of food and making smart grocery investments can make a substantial difference.
The bigger the family, the bigger the grocery list and the expenses go high. Additionally, grocery shopping daily adds more stress and expenses, such as transportation.Therefore, to cut costs, consider buying groceries in bulk, especially supplies that will last for weeks or months. Instead of buying from the local supermarket, search and compare prices at top supermarkets such as VIVA Supermarket or Union Coop, which usually offer discounts on bulk quantities, reducing the grocery store bill.
Cooking at home can greatly reduce costs.For example, a non-vegetarian meal can cost AED 50 at home, while the same meal at a restaurant can cost up to AED 110. Therefore, avoid eating out or fast food and make a weekly meal plan that can save money and stress, and make sure to include the required ingredients in the grocery bulk shopping list.
Saving is more of a regular habit that can be developed through commitment.
Therefore, no matter how much mothers in the UAE try to set a savings plan, adopting saving as a lifestyle is the best solution for success. It seems like a no-brainer, but people should never buy what they can’t afford. Initially, sticking to it can be difficult, but it is worth it in the long run.Most people can’t resist the allure of brands, but it’s essential not to fall into that trap. Ultimately, it’s all about utility; a bar of soap for AED 5 serves the same purpose as the AED 50 one. Consider other saving habits such as:
Reducing expenses sometimes isn’t enough.So, generating extra money in your spare time can be a game-changer. Fortunately, there are many ways to earn money from home by identifying your talents and skills.Some of homemade income-generating ideas can include:
The best way to reduce costs and start saving is by shopping cost-effectively. Here are some good tips to follow:
Saving money is a long journey that needs continuous work.
Therefore, building a habit to regularly monitor your finances is essential. Track expenses to record every dirham spent and identify areas where saving is possible. Also, evaluate income sources, including salary, additional income streams, and potential opportunities for increasing earnings.Review any outstanding debts, such as loans or credit card balances.
Make a comprehensive list of the debts, noting interest rates, minimum payments, and repayment terms. Create a strategic plan to manage and pay off debts systematically, prioritizing those with high-interest rates.The most important step is reviewing your financial goals, both short-term and long-term, assessing progress and adjusting your savings plan accordingly while seeking opportunities to increase savings.
Keeping in shape is a top concern for moms in the UAE.However, gym subscriptions aren’t cheap and require significant time that can’t be saved. Luckily, moms on a budget can stay fit with some cost-effective solutions, such as:
Money-saving apps come in handy when you want to track spending and really commit to saving goals.New apps now help automatically transfer small deposits from daily purchases to a savings card.Indeed, apps like MALY are specifically designed to help busy moms easily build up their savings from daily spending, as well as set up monthly or weekly savings plans.
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