6 smart money moves when you’ve got kids

Saving money and budgeting are scary words when it’s just you to provide for, but when you’ve got children the terms can become even more daunting. It has been estimated that the cost of raising a child to the age of 21 when they leave university is around £230,000. For people on the average wage of £26,500 this is over 10 years complete wages, an eye watering figure.
The cost of daily living alone can leave us coming out in a cold sweat so lots of us don’t have savings or pretty looking budgets which can be adhered to every day, but here are some smart money moves to take when you’ve got kids.

Check your eligibility for tax credits
Tax credits can massively help offset the cost of having children and can be worth £1,000’s each year.
They are pay-outs from the state directly to you to support you if you have children, or if you work on a lot income. How much you get will depend on your circumstances and there are two different types of child tax credits, you might be eligible for one or both of these.

If you have children and work you could be eligible for child tax credits and working tax credits, and if you have children but don’t work you could be eligible for child tax credits. Getting tax credits can massively help your ability to start saving or to help with your budgeting.

Take advantage of childcare vouchers if you work
If you have to pay out for childcare while you work then special childcare vouchers can save you thousands of pounds a year in tax. The vouchers are offered through employers and it enables you to pay for childcare out of your pre-tax and National Insurance income, and while this might not seem like you’d save a lot the impact could be huge.

Look into after school activities and clubs

It can still be hard to work even if your children are at school because by the time you get them to school and pick them up it doesn’t allow you much of a working day. By asking your employer you might find they are flexible for you to start half an hour later and finish half an hour later so you can drop your children at school.

While lessons may finish between 3 and 4 in the afternoon most schools offer activities, groups and clubs after school including sports teams, homework club and leisure activities which would allow them to stay safe in school for extra time in order for you to finish work and pick them up. These activities and clubs can be far cheaper in the long run than paying for help picking up the children and watching them until you come back from work.

Get yourself covered with life insurance
Now this might sound like a depressing way to start but it is estimated in the UK one child in 29 loses a parents before they have finished full-time education. If the worse happens and you’re no longer around to provide for your child how will they survive? By taking out life insurance your dependants will get a fixed amount of money when you pass away.

While life insurance is one of those things you hope will never need to pay out it is worth looking into as it’s better to be safe than sorry.

Look at switching energy and/or electricity suppliers

Energy and electricity can be expensive when it’s just you but taking into account kid’s baths, children forgetting to turn lights off, extra heating and technology such as games consoles and TV’s families can face huge fuel bills. You can make huge savings by changing energy or electricity providers and some might even give you an incentive to change to them.

By shopping around and using a comparison site you could save yourself hundreds of pounds a year helping you budget and manage your money better.

Take advantage of family deals when travelling
If you’re heading out on a day out, to visit the relatives or just shopping travel by car can work out expensive with both fuel and parking costs. Travelling by public transport can work out cheaper in a lot of events due to family friendly deals. A family and friends railcard costs about £30 a year and gets you a third off most standard rail fares across England for a whole year. If your kids are a bit older, full time students between the ages of 16 and 25 can get a young adult railcard to also save a third off travel.

Family friendly deals don’t just cover train fares, a lot of cinemas and trips out offer special family discounts which can work out cheaper if you have two or more children in tow with you.

Sources and Further Reading:

The Telegraph – Average cost of raising a child in UK £230,000
Cost of raising a child has risen by £2,000 in the past year
Tax Credit Calculator
Childcare vouchers: better off calculator
MoneySavingExpert.com Cheap Energy Club