Budgeting for families

Networking with other parents is a great way to cut down on your family expenses. You can share and swap goods as your children grow, or sell them to each other secondhand. No one needs to hold onto a baby seat when their child is no longer a baby.

You could join a local parenting group or get in touch with other parents through a national networking charity like the National Childbirth Trust.

It’s unnecessary to get a shiny new pram when you can pick one up secondhand for less than half the price. Check your local charity stores, the local newspaper or online community or auction sites.

There are also ‘nearly new sales’ run by the National Childbirth Trust (NCT), where you can pick up cheap goods for your kids. Check out when the next one is near you on their website.

For most parents, childcare is the biggest financial burden of having children. You have a few childcare options.

• Child minders - generally, the minder looks after your child in their home at about £127 per week for a child under two years old. Please make sure you check with your local council for details of registered child minders.
• Nannies - hiring someone who stays in your home typically costs between £127 and £400 per week. Please ensure you do a thorough background check before hiring a nanny.
• Day nurseries - it costs from £141 to £197 per week to put your child in full time daycare.
• Nursery schools - if you use the state education system, it’s free. Otherwise, you’re looking at around £800 to £1,200 per term.
• Out of school care - for after school care, you will have to pay between £5 and £10 a day.
• Playgroup - it’s about £5 for a two to five hour session.

To find out about childcare in your local areas, check ChildcareLink.

Please note that nine out of ten families are eligible for financial help, depending on their circumstances. So make sure you’re getting everything you’re entitled to.

You can cut down on your living expenses without drastically changing your lifestyle. Here are a few ideas.

• Use the uSwitch.com comparison and switching services to switch to cheaper suppliers for:
  • gas and electricity
  • home phone
  • broadband
  • digital TV
• Pay bills by Direct Debit. You usually get a discount from suppliers
• Shop around for the best deal on all your purchases
• Get the most from your credit card. Depending on how you use it, you could save money on interest or earn money with cashback by getting a card to suit your needs
  • Compare credit cards
• Cut down on transport costs by sharing the load with other parents. Organise a car share to take the kids to school and weekend sport
• Make packed lunches for yourself and the kids, instead of spending hundreds of pounds every year on prepared food

Look at your spending
The best way to curb your spending is to look at where your money is going. Then you can come up with ideas for cutting back.