How to Improve Your Family’s Finances

Last updated on October 6th, 2024 at 07:07 pm

Everyday living expenses are putting families under more pressure than ever before. Helping your family might feel like a struggle when you’ve got to prioritise bills, motoring costs, council tax, and so much more!

On average, raising a child costs £166,000 for couples in the UK. Wages barely compete with the rates of inflation on essential services like groceries and childcare, so finding your financial independence is critical. 

Amid the struggles and demands of family routines, you can find clear direction in your financial wellbeing. Here are our three top tips for improving your family’s financial wellbeing. 

1. Create a family budget

The first step to improving your family’s finances is to create a detailed budget. 

Tracking your spending is the first step. From there, you can divide your spending into categories and adjust your budget to align with your family’s financial goals, especially if you’re trying to save more. An everyday budget might feel like a novelty, but it’s where all the real change starts. 

Don’t worry if tracking your spending habits doesn’t come naturally to you: there are several tools and budgeting apps to sort it out for you. But no matter how approach the task, keeping an eye on your income and outgoings will give you the clarity you need to become more financially responsible as a family. 

2. Reduce household expenses

Cutting back on day-to-day expenses could save you more money than you might expect. You can cut back costs by reviewing your:

• Utility bills: Using a smart meter or thermostat, take a look at your energy use to see if you could start saving more during the day.

• Heating system: Renewable heating technologies could save you money and reduce your carbon footprint. Check if you’re eligible for government grants like the Boiler Upgrade Scheme.

• Subscription services: If you’re paying for a service that you no longer use, there’s an obvious opportunity to save more money! 

• Grocery shopping: Comparing prices and shopping around for your groceries could save you more than you’d expect. 

• Car insurance: Start looking for a multi-car insurance quote to save money on comprehensive cover for the whole family.

3. Plan for the future

Lastly, setting up an emergency fund could become an integral part of building confidence and financial stability for your family. 

If you and your spouse have individual bank accounts, try to use automatic round-ups and other smart features to help you steadily build more savings.

Exploring low-risk investment options also makes sense for families looking to enhance their wealth. These could include government bonds, company stocks, or accessing favourable interest rates on loyalty-based savings accounts. 

Building a financial safety net is essential for long-term stability. Focus on the future and try to avoid your past mistakes!