A Look at Finances as a Parent

Different stages in life require different budgets. We are always encouraged to save for the future, but with the current economic climate and predictions of a gloomy horizon ahead for families, it's now more important than ever to look carefully at your family finances.

So here we'll suggest some things to consider when you're working out your family budget. For a more comprehensive guide on family finances especially for new parents, follow this link.

In a nutshell, making your money stretch further involves maximising your income - and spending less…

Budgeting for changing families

Families come in all shapes and sizes, so when you're working out a family budget or reviewing your finances, you'll need to take your personal circumstances into account and work out what's right for you and your family.

Your family will change over time, of course, so consider how you will budget for important landmarks such as a new arrival, starting school, starting new hobbies - or when your 'child' actually goes to college / leaves home.

Can you both afford to work?

There are arguments for and against mums & dads both choosing to work. It's nice to be able to choose, but often the choice is simply based on the family finances.

According to an article in The Times, 67% of women with children in this country do work.(1) Mums who want / need to work should consider the cost of childcare during working hours and whether it's actually more economical to stay at home or go to work. One option may be to work part-time - or possibly to arrange for a friend or relative to look after your child while you're at work.

In fact, many parents are doing just that. The Daycare Trust '2009 Childcare and Early Years Survey of Parents' found that in total, 35% of parents of children between three and four years old - and 20% of parents of school-aged children - were using childcare that combined professional childcare and informal childcare (friends and relatives).(2)

Having people you trust close by to help out with the cost of childcare can save precious money in your monthly budget.

Minimise your costs

Sometimes for a budget to work well, you'll need to cut back, but that doesn't have to be boring. Here are three free ways to entertain children.

Build a camp in your living room with furniture, bedding and pillows - and camp out for the night.
Invite your children's friends to your home for a party and ask parents to supply one plate of food each.
Take the kids for a walk in the countryside, follow a nature trail and take a picnic. It's healthy, adventurous and pretty much free.

The financial outlook for families is pretty pessimistic at the moment, so how do you stay positive in the face of all this doom and gloom?

Remember