Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk

These Simple Figures Show The True Cost Of Running A Family

Divider

Running a family is very expensive. Ensuring you’ve got enough to pay for the weekly essentials is a struggle, let alone splashing out on activities to keep the kids healthy and entertained. Trying to figure out where your money is going, and where you can cut back and save is difficult and makes quick payday loans appear like a quick fix.

Rather than applying to loan companies, we’ve gathered the statistics to show you where your money going and help you organise your finances!

Sources:

Some of these figures may surprise you – the cost of raising a child in particular! Obviously these figures are the national average, so the costs may be much lower or higher for some people. But when you look at these sorts of figures, it may make you start to consider your monthly budget.

Why Create a Budget?

Most people hate the idea of budgeting. It suggests that you’re struggling with your finances – but this is not always the case. Budgets can be incredibly useful tools, particularly for saving money.

A budget doesn’t have to be complicated either. While some people enjoy keeping track of every penny they spend, as it makes them feel more in control, for others, it’s just about being more conscious of your spending.

It’s essentially a change in mindset – if you start really thinking about the money you spend each month, you’ll probably start to realise the areas you can cut back.

Making a Budget and Sticking to It

These days, there are loads of free budgeting apps you can use, rather than writing a physical list. These also ensure that you have your budget with you pretty much at all times – as long as you have your phone on you!

When creating a budget, the first step is gathering all your financial documents together. This may be as simple as bringing up your bank statement online, or you might need to gather bills and receipts.

Next, you need to split your spending into two categories – essential costs and nonessential costs. The former will be obvious expenses, like food, housing costs, bills and loan payments.

Nonessential costs will be recreational items, such as gym membership, your Netflix subscription and weekend trips away. We’re not saying you need to cut all nonessential costs – that would probably make you miserable – just figure out the ones you can probably live without.

When it comes to sticking to your budget, for this you need to get your whole household on board. As long as everyone is working together, you can save money! And that way, you can hopefully put the savings towards a bigger expense, like a family holiday, that you may not have thought you could afford.

For more helpful tips about budgeting, you can check out more of our blog posts!