Effective Family Budgeting Tips: Save Money as a Parent

The kids are back at school and your wallet may be a little bit fuller, now the pressure to take them on a daily outing has slowed.

Or it could be emptier than ever. After all, uniforms and other expenses that go hand in hand with heading ‘back to school’ can definitely add up.

In our latest article, we’re sharing some family budgeting tips to help you save money as a parent.

Read on for our money-saving strategies, which will help you take control of your family budget…

How to create a family budget – and regularly review It

Sure, you might already use a meal plan, but do you have a family budget? It’s easy, you can create one online or, the old-fashioned way (in a book or on a sheet of paper).

In it, you’ll add:

Monthly income
Mortgage or rent payments
Bills and any other household costs
Direct debits
Subscriptions
Travel costs.

Don’t forget anything else you pay out regularly. Look back at your bank and credit card statements, so you don’t miss anything.

After you do this, you can see how much of your monthly income is "disposable." Disposable income is the amount you have left for saving or spending on non-essentials.

Regularly assessing and updating your family budget is important as your children grow, and your lifestyle changes.

For more information on planning your budget, check out The MoneySavingExpert site’s useful article on Budget Planning.

Is it time to keep a spending diary?

Alongside your family budget, the StepChange site suggests keeping a spending diary, so you can see your spending habits.

The article explains the benefits: ‘A spending diary can not only help you track what you spend each day but help you to think back about how you were feeling at the time you spent more than you meant to - and spot patterns you need to break.’

A spending diary alongside your family budget could get you on track financially, while a family savings account can help you put funds aside for you and your family’s future.

So, why not get the whole family involved in putting together your household budget template. It’s a great way to teach your kids about budgeting and how to manage and save money.

How to cut household expenses and save on utility bills

It may not be something you’ve thought of though (or something you keep putting off), but if you haven’t shopped around for the best deals on utilities, do it now. There’s no better time to cut household costs and get stuck into some serious financial planning.

If you’re keen to save on utility bills and slash household expenses, here are some top tips:

Consider Switching Energy Providers – Compare energy tariffs and consider switching providers to get the best deals on gas and electricity.
Think About Installing Energy-efficient Appliances – It could be worth replacing old appliances with more energy-efficient models to reduce energy consumption and save on utility bills.
Use Smart Thermostats – You can set thermostats to adjust temperatures when you’re not home, to lower your energy use.
Reduce Water Usage – Install water-saving showerheads, fix leaks, and run dishwashers and washing machines only when full. By doing so, you’ll be conserving water and saving money
Unplug Unused Electronics – Don’t forget to turn off or unplug devices when not in use to avoid energy consumption that adds to those electricity bills.

For other useful tips on saving energy and making financial savings, check out Energy-saving tips to help you reduce your energy bills at home from EDF Energy.

Make the most of cashback websites and schemes

Need to get the kids some new school shoes? Or perhaps they need a new set of swimming gear – or even a lunch bag and/or stationery. Why not look for handy cashback apps for parents.

Make the most of cashback websites and get a welcome kickback on all those purchases; they can add up over the month and year, after all.

Many cashback apps will round up your funds and allocate them to your savings account. Why not challenge yourself and see how much you can save this month?

Cashback sites also encourages you to take a more deliberate approach to spending. Why? Using sites like these requires planning and comparison before you make a purchase, rather than making an impulse purchase.

If you’re keen to earn cashback rewards via cashback schemes, it’s well worth checking out some of the popular cashback sites.

Save on clothing and organise a kids’ clothes swap

Finding the cost of clothes and other necessary items drastically mounts up?

If so, why not organise a kids’ clothes swap with other parents? Agree on a location (someone’s house to keep costs down, perhaps?) and each take a bag of clothes your child or children no longer need – or that simply don’t fit. Then, simply rummage away and save yourself a small fortune in the process.

Find out what benefits you’re eligible to receive with the UK benefits calculator

Do your research on the benefits your family may be entitled to. After all, people in the UK miss out on billions in family benefits every year, which can significantly impact your family budget management, especially when times get tough.

This StepChange online benefits calculator tells you what you might be able to claim – so head over to the site and see what, if anything, you’re eligible to receive. You may well be pleasantly surprised, and it may ensure family financial planning is simple and stress-free.

Don’t feel embarrassed about claiming, either. Everything from redundancy to a reduction in income can mean your finances are temporarily affected; if you’re eligible to claim money, don’t let your pride take over – just claim what you’re owed.

Looking to invest your family savings

Now that you have your family finances in order, why not start building up a savings pot to ensure you’re in a better position going forwards?

If you’re looking to start focusing on your financial goals, view our range of financial products*:

Our Junior ISA account allows you to use your savings to prepare for your children’s future and set them up with their own savings pot when they turn 18.
A Lifetime ISA can help you put funds aside for your first family home.
The Flexible ISA means you can invest in stocks and shares in the long term, while the account will prove a convenient family emergency fund.

Do not hesitate to get in touch if you have any questions for our team about any of the products outlined above.

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