Saving money while raising a young family is no easy task. The challenges only multiply in tough economic circumstances like the ongoing cost-of-living-crisis in the UK, with soaring inflation affecting all areas of everyday life.
Saving directly from a monthly salary can feel impossible, especially with last-minute expenses and bills throwing curveballs where least expected. Whether you’re planning a family or making a big purchase soon, it’s always worth learning some practical ways to save money.
Why is it so important for families to save money?
Simply put, raising children from infancy to adulthood is incredibly expensive. According to the latest figures from the Child Poverty Action Group, the cost of raising a child to the age of 18 exceeds £166,000 for couples. Lone or single parents face even higher costs of up to £220,000 in total.
These costs are unavoidable, since they cover every aspect of a child’s development – including clothing, food, education, and enrichment. With thousands of pounds required every year, it’s integral for families to save money wherever possible.
Four money-saving tips for families
Budgeting might be age-old advice – but that speaks volumes for its impact. When you carefully set out a budget and follow it as closely as possible, you’ll find that you have even more leeway for savings than you first expected.
If you’re starting from scratch, the first step in the process should be to look over your statements to identify your income vs. current spending patterns. From there, you can look for areas to cut back on, as well as think of a sensible and realistic monthly spending allowance.
The subscriptions you pay for but rarely use make a significant difference to your monthly spend. It’s important that you’re only paying for what you use, especially when it comes to gym memberships and rolling payments for online services.
From streaming services to premium membership options from retail giants, it’s likely that you’ll be paying for things you don’t use anymore. If so, it’s time to prioritise the ones that make the most valuable contribution to your life – and ditch the rest. Doing so could save you hundreds of pounds a year.
Dealing with personal debt and money struggles is something that a lot of us dread, but it’s so important to get a handle on it before you feel out of control.
Even though it won’t increase your savings, paying off your debts is guaranteed to make your accounts look healthier. When you start finding effective ways to improve your credit score, you’ll stand a better chance of being accepted for loans, including mortgages.
When you’re raising young children, it might feel tempting to get carried away with online shopping – especially near birthdays and festive holidays. But even if you struggle to resist impulse spending, it’s important to only buy what you need for you and your family – with the occasional treat.
Clothes, food, furniture and medical supplies are the bare necessities. To grow up feeling happy and fulfilled, your children will also need some toys, sports equipment, and things that help them to express who they are, like musical instruments and interactive games.
Overview
You don’t need to indulge your child to ensure that they grow up with all their needs met.
When you cut back on unnecessary spending, you’ll be surprised to see your savings potential grow rapidly – so you have more money for the bigger things.