Kate Hudson is all smiles on the cover of Harper's Bazaar magazine's December/January cover where she talks about high-end fashion and admits that those clothes aren't in her budget.

"People think we own all these dresses, but we borrow them," she said about red carpet gowns. "I can't afford to buy that stuff."

She added, "I'm not a big high-end fashion shopper. I wish I could but the truth is things are just so expensive. Before Isabel Marant was a million dollars and famous, I used to go to her store in Paris and go crazy, it was so affordable."

The 34-year-old actress, who has been with musician Matthew Bellamy since 2010, said her two children, Bingham Hawn Bellamy and Ryder Robinson, are two of the main reasons she watches her expenses.

Kate Hudson Talks Body & Working Out With Shape

"There are certain things I splurge on, but it's very rare, especially when you have two kids and school tuition," she said.

What Hudson does make time for, however, is exercise.

"It really is a vital part of my day in terms of energy," she told the magazine. "And I mean just by putting a sports bra on. Then maybe you'll do something! Even if it's a few squats in the backyard and back to the couch."