Parents can save money with these tips (Picture: Getty Images)
With energy prices, the cost of food and essential items increasing, parenting can feel pretty challenging in the current climate.
To help parents ease the pressure on their bank accounts this year, industry experts have revealed four golden rules for parents to start the year with a finance fit-check.
One of Europe’s leading price comparison sites idealo.co.uk has teamed up with mortgage and protection broker Clementine Palmer at Bright Money Independent to provide some guidance for parents on how they can get ready for the year ahead when it comes to balancing finances.
How to create a family budget
This will be essential in helping to establish where and when they can spend each month. But where do you start and what should you include?
‘Start with your total income, deduct essential fixed expenditures such as mortgage or rent payments, insurance, utility costs, council tax and childcare costs, then use an average of four weeks fuel, travel and food, and household costs to work out your disposable income,’ says Clementine.
‘This will give you an idea of how much you need to save, try to set aside 20% of your income towards savings as this will ensure your family is covered in the case of emergencies like boiler replacement or car repairs.’
How to create a family plan?
You should put key dates in your diary to help your family plan, especially events which can be expensive. This may include school term start dates and school holidays – for when you’ll need new uniforms and equipment, plus public holidays, for things like childcare.
‘The summer holidays for school-age children are always a challenge for working parents scrambling to arrange childcare, which often adds up especially if the support of family members isn’t an option.
How much does it cost to raise a child?
The Child Poverty Action Group said in 2023 that the cost of raising a child to age 18 is £166,000 for a couple and £220,000 for a lone parent.
‘Reaching out to other parents in your child’s class to set up play dates where you can share the load works well for many.
‘There are also charity-run holiday clubs for a low cost or voluntary contribution care. Other clubs often have early booking discounts you can take advantage of if you plan ahead.’
How to cut back spending and save money where you can
Cutting back where you can as a family will help to leave room for the occasional treat.
‘Schools often have PTA-run second hand uniform where you might be able to get items for a fraction of the cost and sometimes the proceeds go towards your child’s school as a bonus,’ Clementine says.
‘Schools are still offering free school meals for children in key stage one which should be a huge help to reduce your food bill during term time.’
How to keep children entertained
This can be a challenge, especially during the six-week break in the summer. But the experts say that by being tactical, such as by looking for reduced cost meals and buying items like paddling pools in the winter, could help with costs..
‘There are several businesses that offer reduced cost meals for kids, for example, kids eat for £1 at Asda during some parts of the year, M&S, Tesco, Dunelm, Toby Carvery all have similar offers.
‘During half term breaks Pizza Express and Zizzi often have offers on kid’s menus too. As well as that buying items during “off seasons” will ensure you get the same products when they’re usually on sale, for example, purchasing paddling pools in winter will likely save you money.
‘The same goes for summer and winter clothes which often go on sale during the off season.’
The cost-of-living crisis has convinced me not to have children
Bonnie Harrington recently shared how rising living costs made her decide she didn’t want to have children.
‘Like many people in the UK worried about rising living costs, my husband and I recently sat down together to do “The Budget“,’ she said.
‘Energy costs are increasing, we’ll be renegotiating our mortgage soon, our roof needs repairing, and there’s a tightness in my throat every time someone mentions the word “recession”‘.
‘So we sat down to face the reality. It’s not dire, but it’s not exactly comfortable – and it’s reinforced my decision to never have children.
‘Because, while parenting is anecdotally fulfilling, it’s also famously expensive. There is no way I could afford to have a baby now, or in the foreseeable future, without also signing up to years of debt.
‘There were many reasons that led me to decide, long ago, that children weren’t for me. In no particular order, I thought about the environment and climate change, and what kind of world I’d be bringing a child into. I thought about how having a baby would affect my body, mental health, career, relationships, and freedom.’
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