How to save money when you’re a parent

Friday, March 26, 2010

The average cost of raising a child these days is hitting the £200,000 mark. This is no small sum, so any ways in which the family’s expenditure can be reduced is worthwhile. Some tips that should stand you in good stead are:


Think about Life Insurance

When one has a family, it is essential that their financial security is considered and protected. When a life insurance policy pays out it could cover your dependents expenses or even pay off any outstanding mortgage, which would protect their home.


Make sure you are claiming what you can

Make sure you keep on top of the benefits and breaks that you are entitled to, such as those received from the Child Trust Fund.


Save, as soon as you can

Do your best to transfer a regular amount of money from your salary each money into a savings account. Look for accounts that offer high interest rates, or alternatively look into tax free ISAs allowances.


Be creative

When taking the family for a day out, look out for special offers on activities or head down to the museums and parks, which are pretty much free of charge. Children are also highly appreciative of a picnic, which will save you the expense of eating at a restaurant or fast food establishment.


Research your electricity and gas suppliers

Be sure to regularly review your utility suppliers, as switching companies can often save significant sums of money, as suppliers often give new customers their best deals. Try comparison sites to quickly and easily choose between suppliers.


Be prepared

It might be depressing, but if you have children then it is imperative to make a will. If there is no will in place, then the government will make decisions on your behalf which could result in tougher times for your dependents.


Simon Denton