How a Family With Children Is Getting Out of Debt

Do you think it’s impossible to get out of debt if you have kids? Not so! Here’s how one family is successfully getting the whole family involved in their debt repayment efforts.

How often have you seen a sensational headline that says something like, “This Couple Paid Off $36,000 in Debt in Just 6 Months”? It sounds great! However, when you click over, you learn that it’s a couple with no kids.

Yes, they had to work hard to pay off that debt, but getting a second job when you don’t have kids to care for is a much simpler task. Those of us with a family have to get a bit more creative.

Still, I can admit those headlines kind of make a person feel like it can be done, too. In fact, my husband and I were inspired to set a stretch goal to pay off $10,150 in credit card debt this year. That’s probably not the kind of headline that’s going to make anyone drool, but it’s a big enough goal for us.

How To Get the Kids on Board

One of the main ways we’ve taken control of our debt is by limiting our spending. Stops for fast food? Over. Buying fun new toys to keep busy? Not anymore.

Several people have asked how we got the kids on board. I’ll be honest. This question kind of baffles me. The kids don’t pay the bills. It’s easy to get them on board. I just don’t pull out my wallet when they ask for something.

I think the real trick is getting the kids to refrain from complaining about not getting what they want. Well, our kids are still complaining, but we keep it down with these ideas.

1. Motto

Our family has used a motto to keep us on track while paying off debt. We call it “#Yearofno.” (Yes, literally, it’s hashtag year of no.) When the kids ask for a happy meal, we say, “Sorry. #Yearofno.” When they want to go to laser tag on a random rainy day, it’s still “#Yearofno.”

We had to remind them a lot in January, but they’ve slowly begun to remind themselves. They still aren’t happy about it, but at least they can joke about it now.

They also know that if they really want something, they can come up with the money for it themselves. Sometimes, the kids do small chores for family members and get paid. They’ll use that money towards a new gadget or to blow at the concession stand during ball games.

2. It’s ok to say no

It’s so important to teach kids how to deal with the word “no” while they are small. They will survive hearing that word, even if they could win an Oscar for Best Dramatic Response.

Remember that this is the same kid who sobbed for an hour because they got the blue cup instead of the red one. They don’t really understand important versus not important yet. It’s your job to teach them.

3. Deciding what matters and what doesn’t

Choosing wants versus needs is fairly easy when you’re an adult. Basic food, shelter, clothing, and transportation will just about do it.

It gets tricky when the kids are involved. It’s so much easier to justify a purchase for a kid. Take books, for example. I always assumed that when a kid brings home a book order or a flyer for the book fair, I need to buy a book. It’s educational, after all. Their brains will fall out if they don’t have fresh reading material!

Truthfully, I can’t walk across the room without stepping on a book, and half the time, it’s a library book I’ve tripped on. Another book just isn’t necessary.

In another case, our 10-year-old son had an opportunity to go on a special field trip just for 5th graders. It cost $60. I could chaperone the trip, but that would be an extra $60.

I compromised on this one. He needed to go since it was a great experience that he wouldn’t have later when we were out of debt, but I chose not to go along. We’ll find a cheaper way to spend quality time together.

Related: Using Opportunity Costs To Live a Happier Life

Don’t let the kids be your excuse for staying in debt. Yes, it will be a slow and steady jog to the finish line. But you’ll get there, even if it takes more time.

Besides, what do you want your headline to look like? Would you be happy with “Couple Stays in Debt Forever, Because They Have Kids” as your headline? No way! Try “Mom and Dad Demolish Debt: Kids Learn Big Lessons” instead.

• Staying Motivated To Continue Digging Yourself Out of Debt
• 3 Ways To Make Frugality Fun for Kids
• Gift-Giving Etiquette When You’re In Debt
• What Are You Willing To Give Up To Win Financially?

Reviewed February 2024

About the Author

Jamie Jeffers writes about the creative ways her family is saving money and paying off debt in their #yearofno. Read more about it at Medium Sized Family.