Our parents and grandparents didn't have budgeting apps, but they knew how to make a dollar stretch. Here's how to give their best habits a 2026 upgrade.
1. Stuff your envelopes (digitally)
Envelope budgeting is as simple as it gets. When you’re paid, divide your money into categories like rent, bills, groceries, petrol, school costs and transport, and put each category’s monthly allowance in its own envelope. Once an envelope is empty, that’s it until next month.
You don’t need to withdraw cash and risk it getting nicked. Set up separate accounts instead. Some banks even let you have up to 10 offset accounts, so you can do it within your mortgage.
It's also a great defence against bill shock. Put a little aside each payday for the big quarterly or annual bills, like electricity, water and insurance, and they won't sting when they land.
2. Pay yourself first
Most of us pay the bills, buy the groceries, head out, and then save whatever crumbs are left. Our grandparents treated savings as a non-negotiable bill paid on day one.
Today you can automate it. Have a slice of your pay go straight to savings or your mortgage every payday. Ideally that’s 20 per cent, but even 10 per cent helps. Choose somewhere you won't touch it and where it’s working for you: earning interest, offsetting your home loan, or building a pot to invest.
3. Shop by unit price
Our parents and grandparents bought in bulk because that's where the value was, and it still holds true today.
There’s no mental maths needed now. Supermarkets must display the unit price, which is the cost per 100g or 100ml, so you can see at a glance which option is best value. Shopping this way can save up to 50 per cent on some items. A family of four that saves 20 per cent on a $250 weekly shop would be around $217 a month better off.
If your budget has good months and lean ones, stocking up when money’s freer can ease the pressure later. Just bring your glasses, because the unit price is often in teeny tiny print.
4. Borrow before you buy
Those 200 WhatsApp groups you’re in? Use them to save, not spend. If you need a number 9 cake tin, ask around. For a Halloween costume, swap with another family. If you want a pressure washer you’ll use once a year, borrow the neighbour's and return it with a box of Roses.
And don’t forget your local library. Many offer audiobooks and newspaper subscriptions, and some even lend power tools.
5. Use it up, wear it out, make it do, or do without
Reuse what you can, including foil, plastic bags and even cooking oil. Plenty of grandparents will tell you a tea bag is good for more than one cuppa.
Get mending. A basic sewing kit can rescue a perfectly good outfit, and some councils run free repair workshops. And a bread tag makes a handy emergency fix for a blown-out thong.
Squeezing every last skerrick out of the toothpaste tube might seem like overkill, but it’s a habit that adds up when you apply it across everyday life.
Finally, do without. We don’t need everything, and that's one of the most valuable lessons we can teach our kids. Otherwise, we're setting them up for an expensive future where they don't appreciate anything because they have everything, and they’re broke.
