Tips on how to save money if you have a family.
Households are grappling to cope with rising record-breaking financial burdens, as the expense of raising children continues to increase despite constant inflation and increasing childcare prices.
The long-term challenge of financial planning just makes matters worse for families.
Rajan Lakhani, a father of two young children and personal finance expert and money guru at money app Plum, frames the seriousness of the issue in terms of his own experience as a parent. “I know first-hand how costs for looking after the kids can creep up very fast,” he says.
Lakhani concurs that “working families with children of all ages are really feeling the pinch, more so than ever before.” He points to the broader impact of inflation, noting that while the latest reading is 3.4 per cent, the combined impact since 2021 has driven prices up a significant 25 per cent on aggregate, which is “a major increase on our day-to-day finances.”
Despite all these, there is a glimmer of hope in the form of Lakhani, suggesting that “all is not lost.” He believes that with innovative budget tricks, parents can deal with and cut down expenses successfully, having more money available for spending or investment.
- Budget quarterly review
First, you will need to sit down and organise your finances and consider what you actually require and whether you are getting the best deals for things such as insurance, mobile phone contracts and TV streaming services,” says Lakhani.
Actually, it can be pretty hard to find the time to look after your money on top of family life, so set it into your routine to take a little time each month and sit down to go through your finances, pay any bills and start building your budget. Do it on a day you know you will not get interrupted and can concentrate fully.
It’s also helpful to take an annual review of your finances, he advises further. “You can simply sit down and work through the whole year’s worth of bank statements to glance at, or you can use an app to see a good overview of how much you spend to then spot where your biggest spends are.”. You want to know at what point in the year you spend more (i.e. Xmas) or earn more (i.e. thanks to a tax rebate). This will allow you to budget in advance and avoid any unpleasant surprises. - Check your bills quarterly to make sure you really are receiving the best rate
Some of the most popular bills that individuals tend to forget to switch and compare are broadband, electricity and gas, Lakhani continues. “It’s estimated that consumers are missing up to £291 per year by not switching.”.
“It’s a good idea that you shop around your energy company as a routine every 12-18 months, prepare yourself for when the contract runs out on your broadband and make sure you compare prices well in advance so you’re ready to move when the contract actually does expire. - Save money with second-hand things
If you have children you’ll know how fast they grow and how their tastes change year on year, so it’s a good idea to invite pre-loved clothes, books and toys,” warns Lakhani. Give the charity shops, eBay, Vinted and Facebook Marketplace a try. YoungPlanet, Rascal Babies and Mum2Mum Market are ideal for good quality, pre-loved products for very young children and babies. - Avail yourself of special family deals and vouchers for excursions
Loyalty cards and railcards will usually have family days out promotions on their app or website for members, he points out. “For example, with a railcard you can often get 2for1 deals on ‘days out’ at the aquarium and zoo, and discounted cinema and theatre tickets. And as far as the journey itself is concerned, railcards will often return your initial investment quite quickly.”.
Tips on how to save money if you have a family.
