The cost of living crisis squeezed household budgets to breaking point in 2022 and shows little sign of easing up this year as energy bills continue to rise and inflation remains in the double digits.
The UK Government’s cost of living support has been extended for the next financial year, however, despite millions of households set to receive cash help, not everyone will be eligible. Google searches for budgeting apps and money-saving tips have increased by 66 per cent in the last six months.
To help parents and families across the country keep on top of their spending and stick to a budget without feeling guilty, 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 share four ways to save money in 2023.
Four money-saving tips to help every parent
Create a family budget
One of the easiest ways families can manage their finances is by creating a family budget. This will be essential in helping to establish where and when they can spend each month.
Expert Clementine explained: “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.
“This will give you an idea of how much you need to save, try to set aside 20 per cent of your income towards savings as this will ensure your family is covered in the case of emergencies like boiler replacement or car repairs.”
Stick key dates in your diary
It is important to consider key dates like term start dates, school holidays, and Christmas as these can often be expensive for families.
Clementine said: “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 - reaching out to other parents in your child’s class to set up playdates 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.”
Cut back where you can
Cutting back where you can as a family will help to leave room for the occasional treat.
Clementine said: “Schools often have PTA-run second hand uniforms 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.
“Schools in Scotland offer free school meals for children which should be a huge help to reduce your food bill during term time and vouchers when they are off.”
Find alternative ways to keep the kids entertained
Finding ways to keep children entertained especially during the summer holidays can often be a costly job but with a few tactical tips like making the most of deals available to children, parents can save a lot of money.
Clementine explained: “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. Buying items during ‘off season’ 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.”
Katy Phillips, senior brand and communications manager at idealo said: “We’re expecting that spending habits will be greatly affected by the cost of living crisis but with these four finance fit checks parents will find it easier to spread out and organise costs effectively.
“Remember that comparing prices across a range of products can truly help you get the best deal too. At a time where saving is essential to many families, being able to check multiple retailer costings at once can prove a hugely helpful resource.”
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