MoneyMagpie

I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS Jasmine Birtles

3I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS |

CONTENT

Chapter 1 INTRODUCTION ......................................................................................................................4

Chapter 2 SAVE MONEY NOW: QUICK WAYS FOR EVERY FAMILY TO CUT DAY-TO-DAY COSTS .............................................................8

Chapter 3 MAKE MONEY AS A FAMILY ......................................................................................13

Chapter 4 EARLY YEARS – CUT THE COST OF HAVING A BABY .................... 17

Chapter 5 WALKING, TALKING, PLAYING AND LEARNING ................................23

Chapter 6 THE TERRIBLE TEENS ....................................................................................................26

Chapter 7 INVESTING FOR YOUR KIDS ...................................................................................31

JASMINE BIRTLES FOUNDER OF MONEYMAGPIE.COM

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CHAPTER 1

INTRODUCTIONIf you’re a parent, you don’t need to be told that kids cost money!

But did you know that girls cost more than boys and that the average parent in Britain expects to be supporting their child financially until they’re 29?

Those are just two of the facts uncovered by extensive research into the financial fortunes of the family in Britain by Sainsbury’s Bank.

Their research also found that parents whose children are under the age of 25, estimate that on average, 21% (so just over a fifth) of their monthly household income is spent directly on their children on things that only their children use (clothes, toys, entertainment etc).

But whether you have sons or daughters or both, the one thing you know is that it will cost you money…and keep costing! As youngsters have to fork out thousands for university places (in England and Wales) and tens of thousands for a home of their own, let alone the high cost of renting, more of them are staying home with mum and dad for longer.

The costs are going up for parents all over the UK, too, thanks to peer pressure for gadgets, cool clothes, school Proms and foreign trips. The one thing that is cheaper is…having more kids!

On average parents expect to be

supporting their child financially until

the age of 29.

Only 14% of parents thought the cut-off point would be 18 or

younger.

10% felt 19-20 was the age, while 24%

expected that 21-25 was the age when financial support

would cease.

Mums and Dads have different

expectations too. Mums think the cut-off point will be 30 years and Dads, 27

years.

1 2 3 4

Source: Sainsbury’s Bank

Source: Sainsbury’s Bank

COST OF SON VS COST OF DAUGHTERIt’s official – you’ve told us it’s more costly to raise a daughter than a son from 0-18!

Age Cost of Son Cost of Daugther

0 – 5 £5,475 £5,767

6 – 13 £6,414 £6,794

14 – 18 £7,172 £7,747

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THREE QUARTERS (75%) of parents said that it is

MORE EXPENSIVE to raise their first child, comparedto subsequent children. The totalamount more expensive was estimated at 8%.Source: Sainsbury’s Bank

So Sainsbury’s Bank has partnered with MoneyMagpie.com to bring you hints, tips and help with the rising cost of bringing up children from 0 to….as long as it takes!

In this eBook you’ll find tips on how you can save money in day-to-day and make the most of your family cash.

In this book there are tips from the MoneyMagpie.com writers and from personal finance experts Melanie Wright and Andrew Hagger to show you how to:

Cut the cost of kids from ages 0-18 Get freebies for the whole family Find ways that you and the children can make

money Protect your family’s financial future Invest for your kids when you don’t have much

spare!

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CHAPTER 2

SAVE MONEY NOW: QUICK WAYS FOR EVERY FAMILY TO CUT DAY-TO-DAY COSTSYou’re a parent – you’re busy!

So here are some quick hacks to help you and the family save money now before going any further. Go save that cash!

Have a ‘use it up month’Start with the bathroom. How many unused and unfinished hair, cosmetic and skin products are in the cupboards? Don’t buy any new shampoos, conditioners, make-up or lotions until you’ve used them all up this month. Do the same with your cleaning products (go on, use the ‘kitchen’ ones in the bathroom if you have to…

Do you really need the expensive beauty brand? There are some super products out there at less than half the cost, why not do your research and check out a few beauty blogs - there’s always an alternative. You can buy everything from night cream to fake tan in the supermarket these days and you can even make your own – bananas and avocados are great for dry skin!

Let a student cut your hairGet your haircuts, and especially your children’s haircuts, at hairdressing colleges where students can gain experience, and you get a cheap – or free – new ‘do’. It’s not so scary, most have had hours of class time and there is a teacher with them at all times. You can also go with trusted hair salons like Vidal Sassoon and Toni & Guy – the latter offers free hair cuts and £20 for highlights. Both salons only offer the services on specific dates and times so you need to book in advance.

Write a menu planHaving a shopping list will prevent you from purchasing things that you don’t need. Sainsbury’s meal planner has a detailed list that will feed three meals to a family of four for seven days, and can be changed depending on dietary requirements and varying family numbers. Make sure you take your list and tick off each item you place in the trolley.

Find free family entertainment locallyLook at your local Council’s website to see what entertainment they’re offering during the school holidays. Also check out local libraries and museums as they usually have something going on for free or cheap in the holidays. Find more entertainment ideas here.

Travel moneyOrder your travel money before you go away. Better still order it online and pick it while you’re out getting your last minute holiday essentials. Whatever you do, don’t leave it until the airport. Check rates a few days before you go and compare different offers to get the best deal.

Buy Christmas products in the January salesWhile you’re elbowing your way through the January sales, you should also pick up wrapping paper and anything else you might need for the next Christmas as it will often be less than half the price. The same goes for pretty much any holiday event.

Hit the charity shopsShopping at charity shops in posh parts of town is a money-saving must, where you can sometimes buy fantastic designer finds at an 80% discount. Central London boroughs and any affluent suburban areas around the country are likely to have some good finds at a massive discount.

Throw a swap partyHave your friends and neighbours round for a swap party – they can even bring the (older) kids. This is where you all bring stuff you no longer want and swap with each other. It can be a great way to get some new clothes or used baby items for free and it’s also a marvellous way to get rid of all those old items you no longer wanted. Or try Snaffle Up to swap stuff online.

Don’t be shy – haggle! There are so many deals to be had if you just work up the courage to ask. Even high street shops have great deals, start by asking what kind of discount you can get if you pay in cash or if you buy two rather than one. Use a price comparison site like Kelkoo to make sure you always get the best deal. Read Sainsbury's tips for keeping the kids entertained in the holidays on how to get more for your money even in high street shops.

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Buy big-ticket items at auctionsThere are hundreds of auctions happening around the country selling everything from cutlery to armchairs, beds and cars. Most home items – furniture particularly – is massively cheaper if you buy second hand and there are really good quality items being sold at auction all over the country. For example, you can get really good sets of cut-glass glasses for a song because they’re less popular now. Sofas, beds, tables and other large items lose a huge amount of value when they’re even a year old. Also, check out police auctions being held in your area. Police auctions sell everything from jewellery to cars for discounted prices. Read our article on Police Auctions for great tips, and check the Police and Government Auctions website.

Do a budgetsounds boring but it puts control of the finances into your hands and helps you and your family get rich long-term. Use the budget calculator on the Sainsbury’s Bank blog to make it easier.

Start re-giftingRe-gifting is a great way to save money. If you got a gift that you don’t need or want, don’t take it out of the box, and the next upcoming occasion you now have your gift without spending a thing. Just don’t give it back to the person who gave it to you!

Recycle for cashYou probably have at least one old mobile phone hanging around in drawers around your home. Recycle it for cash by using our recycling tool here.

Switch those bulbsChanging all the lights in your house to the energy-saving kind will save money on your annual electricity bill, and up to £100 over the bulb’s lifetime. Energy saving bulbs last up to 10 to 15 times as long, and use about a quarter to a fifth of the electricity that ordinary light bulbs use. In less than a year the costs of the light bulbs will have been saved in your energy bill!

Turn it downIf you were to turn down your thermostat by 1°C, you could save yourself £30 annually! By making the most of the heat; drawing your curtains at dusk to stop heat escaping through the windows, and making sure not to block radiators with any curtains or furniture, it’s unlikely you’ll even notice the difference.

Don’t forget the boilerBy also turning down your hot water boiler to 60 degrees centigrade or 140 degrees Fahrenheit, you could save an extra £10 annually.

Do the loftBy insulating your loft you could save up to £200 off your annual heating bill. Find out where you can find loads of resources for government grants that will cover the costs of you going greener.

Redecorate for lessSave on decorators by doing your own painting and small repairs around the house. Find out how to do up your home on a budget here.

Skip the dry cycle Giving your tumble dryer a miss and drying your clothes indoors is a great way to save money. Use clothes rails rather than lying clothes over radiators as this prevents heat from circulating the room.

RefillDon’t buy new: Refill your printer cartridges rather than purchasing new ones, you’ll save yourself on average 60-70% on the cost of replacing a cartridge by simply refilling your old one. Visit Cartridge World for great rates. Inkcycle.co.uk will pay you for your empty cartridges (however it no longer collects Epson or Laser brands).

Get as much as you can for freeSign up to Toluna which will give you free samples to test and rewards for answering their surveys. You are then able to redeem these points for prizes or use them to enter competitions with great prizes, such as an Xbox One.

Cheap trainsInvest in a £30 Family Railcard and get a third off adult fares and 2/3 off kids’ fares. It covers up to 4 adults when travelling with up to 4 children aged 5-15.

Get into car-sharingSites like Liftshare and Blablacar will help you get in touch with local people who want to go where you’re going and will help with petrol costs. It can even make the school run cheaper.

Re-use and upcycleMost of you told us that you hand down clothes, toys and bikes to the younger children but as they get older and start to notice, it can help to upcycle the items before handing them down. So, for example, get the child to choose a spray paint that you will use together to respray the old bike. Or even try to hand clothes up by turning, say, the younger one’s dress into a t-shirt for the older one.

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67% OF PARENTS REUSE ITEMS

– or plan to reuse items for subsequent children. On average 40% of items will be reused.Of those who said they would be reusing things – here is what they said they would reuse:

CHAPTER 3

MAKE MONEY AS A FAMILYThink you can’t afford a family holiday or a really great Christmas this year? Think again.

If you combine your individual strengths, including even those of the little ones, you could make money together.

Here are a few ideas you could start with to make money as a whole family that you can then put to fun things like a holiday, a big party or new bikes for everyone.

72%

60%

46%

38%

65%

59%

41%

21%

64%

48%

39%

13%

5%

Toys

Bed

Cot

School uniforms

Books

Potty

Pram/buggy

Hygiene products (e.g. washable

diapers)

Clothes

Sports / school equipment

Bike

Mobile phones

Other

Nothing

Don’t know

Source: Sainsbury’s Bank

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MAKE MONEY FROM YOUR JUNK

Most families accumulate lots of possessions which eventually just become junk clogging up the house. Kids in particular often outgrow toys and belongings, so it makes sense to make a bit of money from things the family are no longer using.

Get instant cashIf you have old books, CDs, DVDS and video games that are no longer being used try Ziffit.com for instant cash. It allows you to enter the barcodes of your books, CDs, DVDs or video games and you see immediately how much you’ll get for them. Postage is free too. For more information, read our article on how to make money selling old books, CDs, DVDs and video games.

eBay iteBay will let you sell pretty much anything as long as you are honest about what you are selling, so it’s a great way to get rid of things you don’t need. If something is beyond repair, think about selling its parts and don’t be put off if you fear something is too large to ship, just select ‘collection in person.’ For more information, read our full article on how to sell things on eBay.

Facebook it!As social media continues to evolve there are an increasing number of ways to sell on Facebook and to sell on Twitter, and there are often advantages to not taking the obvious route – such as no-one taking a cut of your profits.

Recycle for cashYou can recycle all your old gadgets as well, for example sites like Empty Cartridge will pay you for your empty ink cartridges.

Sell locallyThere is even a variety of apps, such as Snaply, which provide a platform for you to sell items locally. Download them on your iPhone or Android for free and upload pictures of outgrown clothes or long-forgotten toys. Much like eBay, you have a chance to value the items yourself and individuals in your area will then bid on them. Everyone in the family can pitch in as their unwanted goods will help create a source of additional income for the family to enjoy.

Do a car boot sale Or have a day out with the family and sell your stuff at a car boot sale. The summer is the best time for car boot sales but there are a few things it’s helpful to know before you go. For more information read our full article on how to sell at car boot sales.

GET BAKING

Holding a bake sale is a fun way to make some money on the side while enjoying some quality time with the family as you whip up the batter and icing.

Just be careful when buying ingredients to make sure it’s not too expensive, after all the aim is to make a profit. Shop around for cheaper prices and don’t forget to tell the kids why you’re doing it because it’s a good lesson for future life.

You can sell your cakes and cookies at car boot sales, country markets or even direct to other parents at the school gates. For more information read our full article on making money selling cakes, jams and sweets.

WAYS THAT KIDS CAN MAKE MONEY

Children don’t have to be just cost centres – they can be their own profit centres too! They are often keen to make their own money and working now will help them learn how to do it later in life.

Help the grandparents and family Everyone’s busy, why not see if Granny and Granddad, Auntie and Uncle need a little weeding done? Perhaps the kids could charge an hourly rate for weeding or leaf collecting – everyone hates those jobs and if they’re a little older (and they’re good at it) they could mow the lawn. In fact, it’s something that the whole family could do together if you’re proud of your own garden.

Wash the carsOr why not offer to wash a few people’s cars? It’s a great way to get out in the sunshine while making money and you’re likely to win the affection of your neighbours (assuming your prices aren’t too steep that is!).

CollectingIf your children are mad-keen Lego fans (who isn’t?) and you have some spare cash, get them to spot the products that could make money over time. Rare sets – and even not-so-rare ones – can change hands for thousands now and canny collectors are buying two of each product they like: one to play with and one to store away to sell in a few years’ time!

Disney Vault DVDs are similar. Every now and then Disney will ‘retire’ a DVD making it suddenly valuable. For example, Beauty and the Beast blu-ray 3D Diamond Edition is selling on Amazon at £74.99. On release it would have cost no-more than £24.99, Find out more in this article.

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CHAPTER 4

EARLY YEARS – CUT THE COST OF HAVING A BABYAs the findings in the Sainsbury’s Bank survey show, the initial cost of having a baby can be very high, but there are lots of ways of cutting those costs and getting help from benefits and tax credits. Here are some great ways to make having a baby more affordable.

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TIPS ON HOW TO PREPARE FINANCIALLY FOR HAVING A BABY from Andrew Hagger. (Moneycomms.co.uk)

With all the excitement that starting a family brings it’s easy to underestimate the impact it will have on various aspects of your daily life and that includes your finances.

It’s important to consider the effect that having a baby will have on your bank balance even in the months before it is born – for example when you find yourself knee deep in paint and wallpaper as you decorate and kit out the nursery.

Below you’ll find details of the various benefits to which you may be entitled, and once you’ve got a handle on what money you’ll have coming in it’s worth doing some number crunching to get an idea of what your new family finances may look like.

Re-evaluate your monthly budgetThe first step is to look at your existing monthly income and outgoings and get a rough idea how that’s likely to change when the new addition to the family comes along.

There may well be money to be saved due to fewer nights eating out or having drinks with friends, but these cost savings will be swallowed up – and some! – by all the baby related expenses coming your way.

It’s a good idea to try to work out how the money side of things will look when there’s a new person

to clothe, feed and keep amused, and the earlier you understand how much cash you’ll need to buy all those baby essentials, the sooner you can start planning what needs cutting back and how much extra you’ll need to save.

Time to get serious about saving!Having a new baby may be one of the best things to happen in your life, but it will be a big drain on your finances too, so it makes sense to start paying as much as you can afford in to a specific savings pot or ‘baby fund’ as early as possible – at least that way you won’t have to rely on an expensive bank overdraft or credit card to buy all those baby related essentials that you never knew you needed!

Maternity PayWhen you have a baby, you’re entitled to maternity leave for one year as well as pay from your employer for up to 39 weeks while you’re away from work.

You will have to give your employer a minimum of 4 weeks’ notice if you want to start Statutory Maternity Pay but you’ll only be eligible if you have been working for your current employer for a minimum of 26 weeks and you earn a minimum of £112 per week. (If you don’t meet this criteria you may still be entitled to claim a Maternity Allowance from the government).

You are entitled to Statutory Maternity Pay for 39 weeks of your 52 week maternity leave as follows (2016-17 tax year):

Week 1 to week 6 – 90% of your average weekly pay (before tax deducted). Week 7 to week 39 – The lower of 90% of your

earnings or £139.58 Week 40 to week 52 – this period of maternity

leave if you choose to take it is unpaid

Paternity leaveThe new father is entitled to one or two weeks’ paid time off work in order to look after the new baby.

To qualify you must have worked for your employer for 26 weeks by the 15th week before the baby is due, be employed by your employer until the baby is born and earn at least £112 per week.

In the 2016-17 tax year you’ll receive £139.58 per week or 90% of your average weekly earnings, whichever is lower. Official application form here.If your baby was born after 5 April 2015, you my also

be able to get Shared Parental Leave (SPL) and Statutory Shared Parental Pay (ShPP) – enabling you to share the leave rights with your partner. More details about this here.

Child BenefitThe official rates for the 2016/17 tax year entitle you to receive £20.70 per week for the eldest or only child and £13 70 per week for each additional child.

Be aware that if your or your partner has an income of between £50,000 and £60,000 per year you’ll have to pay a portion of your child benefit back via your self-assessment tax return and if over £60,000 you will have to repay all of your Child Benefit as income tax.

Child Tax Credit (available for those on low incomes or claiming benefits)Anyone responsible for a child below the age of 16 (or under 20 if they’re in education or training) is eligible and the amount you receive depends on your circumstances, including:

Your income, how many children live with you and whether your child has a disability

Call the Tax credit helpline (0345 300 3900) for a claim form.

No charges at the Doctors or DentistDon’t forget that in England you are entitled to free NHS dental care and free prescriptions whilst you

are pregnant and for the 12 months following the birth of your child.

In Scotland, Northern Ireland and Wales, prescriptions are free even when you’re not pregnant.

Also, if you receive income support, working tax credit or child tax credit, you and your family may be entitled to help with some NHS costs.

Sure Start Maternity GrantThis is a one-off payment of £500 from the Social Fund to help with the cost of your baby if it is the only child under 16 years of age in your family and you (or your partner) receive any of the following benefits:

Income Support Universal Credit Income-based Jobseeker’s Allowance Income-related Employment and Support

Allowance Pension Credit Child Tax Credit at a higher rate than the family

element Working Tax Credit which includes a disability or

severe disability element

It’s also well worth taking a little time to look at the official government website where you can find more detail regarding the full range of benefits and financial help available to new parents.

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TIPS ON CUTTING THE COST OF HAVING A BABYFrom Melanie Wright

Don’t buy everything newBaby equipment costs a fortune, and you’ll only use it for a short while, so buy second-hand wherever possible. The National Childcare Trust runs regular ‘nearly new’ sales across the country. Check the NCT website at www.nct.org.uk to find details of the next sale near you.

Take advantage of freebiesThere are loads of websites including Freecycle and Freegle where people give away baby items they no longer use. You can then give them away again once you’ve finished.

Borrow from friends or familyIf you don’t like the thought of buying baby items second- hand from a stranger, ask friends or family if they have any items you can borrow. Use social media such as Facebook to put out your request to people you know – even if they can’t help you, they might know someone who can. Remember you’ll get given loads of clothes as gifts when your baby is bornDon’t go mad buying lots of new-born baby clothes as the chances are you’ll be sent/ given plenty when your baby is born. Just buy a few essentials and then wait and see what arrives before buying anything else.

Do plenty of forward planning and work out exactly how much baby clothes and equipment are likely to set you backKnowing how much you can afford to spend can help prevent you getting into debt. The Money Advice Service has a ‘baby costs calculator’ to help new parents work out how much they are likely to spend. Don’t be tempted to splash out on baby ‘essentials’ that are often anything butFor example, some parents spend a fortune on tiny shoes for their babies, but what’s the point when they won’t be standing up for months (and they’ll grow out of them in a few weeks)? Similarly, do you really need to fork out for a special nappy bin, when you can just chuck them in your normal bin?

Make food in bulkOnce your baby has started weaning make food in bulk and freeze batches of it for later use. Ice trays can be useful for storing pureed food, and once they’ve frozen you can tip them out into separate freezer bags. Don’t forget to name and date them so you know what they are.Sell on your equipment or clothes rather than stashing it in the loft. It can be hard to get rid of your baby stuff, as it will often have memories attached to it, but it’s a good idea to sell it as soon as you’ve finished using it, as it’ll still be in good condition. It’ll be a lot harder to sell if it’s been nibbled by moths or mice and is covered in dust.Don’t always go for the big-name brands. If you’re stocking up on nappies or babywipes, don’t just go for the names you know. Supermarket own-brand items can be much cheaper and do exactly the same job.

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You can also find more ideas on the Sainsbury’s Bank blog. There are tips for new parents in this article.

CUT CHILDCARE COSTS

Childminders – Childminders are one of the cheapest forms of childcare, mainly because they work from their own home, often with their own children there at the same time. There used to be a set rate for them but now they can charge whatever the market will bear. Childminders charge a minimum hourly rate of £3.30 per hour per child but it could be anything up to £8 an hour depending on your area.

Share a nannyNannies are probably the most expensive form of childcare particularly as employers now have to offer a pension as well as pay NI, tax and possibly other benefits. However, if you can find another family in your area with a child of a similar age you can halve your costs by sharing a nanny. It will involve working out which house the children spend most time in and other logistics but it should work out cheaper than the average nursery place.

Grandparents Cheapest of all is a grandparent or two if they live near enough and have the time/inclination to help. Don’t just assume that they will help out as they have their own life. If they do, then you should pay something. One common arrangement is for parents cover the grandparents’ expenses like lunch, outings, transport etc. If you know the grandparents are struggling a bit financially then you should pay something each week or at the very least, treat them regularly with days out, dinners and more.

Au pairs Au pairs are much cheaper than nannies, but are unqualified and should never be put in sole charge of children under three years old. They are an extra pair of hands only, although with older children they can be left to play with them and even supervise homework if their English is good enough. Au pairs generally cost about £100 a week plus room and board and should be expected to do no more than five hours a day, five days a week.

CHILDCARE VOUCHERS AND TAX-FREE CHILDCARE

Childcare vouchers are part of a government-backed scheme that offers working parents vouchers that they can redeem for certain types of care for their children. They’re exempt from tax and national insurance contributions, but parents who use them have to accept a reduction in salary.

The company you work for has to be signed up to the scheme for you to get the vouchers. Once you have your vouchers you can redeem them for various types of childcare including nurseries, childminders and nannies. You can get up to £55 a week, or £243 a month which may be free of tax and National Insurance Contributions (NICs).

If your partner is eligible too you can double your allowance and save twice as much money. Find out more with this article about Childcare Vouchers.

The alternative to Childcare vouchers is Tax-Free Childcare, announced in the March 2014 Budget, and at time of writing due to commence in early 2017. Under this scheme families will get 20% of childcare costs paid for by the government. Effectively, the government will add 20p for every 80p that the parent puts in to one of the new ‘Childcare Accounts’ up to a limit of £10,000. If a parent claims £10,000, he or she will pay £8,000 and receive £2,000 as government subsidy.Some parents will be better off with this scheme, and some with childcare vouchers – it depends on your family’s circumstances. Because the rollout of the scheme has been delayed until 2017, it is not available for enrolment yet. It’s worth keeping an eye on updates, and then digging a bit deeper to see which scheme would best benefit your family.

CHAPTER 5

WALKING, TALKING, PLAYING AND LEARNINGOnce children start to grow, talk and walk they begin to get the ‘gimme’s, particularly when they see what their friends at school have. Here are some ways to reduce your costs in the shops.

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TOYS AND GAMES – GET THEM CHEAPLY

Amazon and eBay are obvious places to look for cut price toys and games. You could even get into ‘neutral shopping’ and sell your children’s old toys on eBay and use that money to buy new (or second hand) ones online.

BICYCLES

Don’t buy from catalogues, as you really don’t know what you’re getting. Bikes arrive disassem-bled and packed in a box, and if you’re not a cyclist you may not have the knowledge to put it together correctly and safely. This could prove tricky for your warranty.

The best online suppliers send out bikes where you only have to adjust the saddle height, fit the pedals, tighten the stem and turn the handlebars.

Find out about customisation, servicing, mainte-nance and repairs when you buy the bike. A good bike takes a few weeks to get used to, and if you need to make changes a decent shop will make the adjustments for free.

Look out for shops that are members of the Asso-ciation of Cycle Traders (ACT), the Consortium of Bicycle Retailers (COBR), Cytech and those that are authorised dealers of particular brands.

If you know a bit about bikes, try the police auctions for all sorts of bicycles for sale at Bumblebee Auctions.

BACK TO SCHOOL – KEEP THE COSTS DOWN

Think second handWhen it comes to uniforms, go for second hand where possible. Your child’s school might run a second-hand sale or a swap shop for uniforms. The Schools Web Directory has a list of local council websites where you can find LEA information which will usually point you in the direction of any second-hand sales.

Supermarkets, too offer good value school uniform ranges.

Buying new items Of course, even if you manage to get some second-hand bargains, there will still be some items that you will need to buy new. A good starting point is the major supermarkets. Sainsbury’s offers all the essential bits of uniform you could possibly need.

It’s also worth checking out the School Uniform Shop which is great value, and offers free delivery on orders over £35.

Getting the right school shoes Start-Rite shoes are still a favourite for parents. They might not be the cheapest, (most of the children’s shoes are around £30 a pair) but they are dedicated to fitting your child’s shoes properly in order to ensure those all important healthy feet. The website has loads of excellent advice on looking after your children’s feet, and how to make sure their shoes fit them correctly. There’s even a downloadable foot gauge and a fitting calculator so you can find out exactly what size your child’s feet are.If you really don’t want to spend that much, then there are plenty of cheaper shoes available from the major supermarkets, usually priced at around £10. It is also worth looking at places like Priceless Shoes, which stocks girls and boys school shoes from as little as £6.

All the other extrasOnce you’ve got all their clothes sorted, there’s still a whole range of other essentials to consider, from stationery and bags to lunchboxes. It’s here that the supermarkets excel in value for money. Stationery shops will advertise back-to-school savings on all kinds of items, but you’re almost certain to be able to find something similar at Sainsbury’s for a fraction of the cost.

HERE ARE A FEW MORE THINGS TO BEAR IN MIND

If the school insists you buy uniform from a spe-cific place it can often be more expensive, so only buy the essentials (i.e. the items with the school logos on) from there, and get staples such as shirts and socks from a cheaper store.

Buy everything in the summer. If you wait until the end of August, you’ll find huge queues and limited stock in all the shops.

Easy-iron items are a great idea! Think of the number of times you’ll have to wash and iron those little shirts!

Try to find the happy medium between quality and price. Buying a whole set of new things for your child can be extremely expensive, but don’t skimp on items where you want good quality, like shoes.

Similarly, your child might be set on having the most expensive rucksack money can buy, but don’t give in! You can go for something more in the middle of the range, and if they’re still ada-mant, suggest that perhaps they could put some of their pocket money towards the one they want. That will make them think!

Source: Sainsbury’s Bank

44%

The latest technology (e.g. phones, tablets, etc.)

43%

Fashionable clothing

42%

School trips and excursions

30%

Membership to clubs and societies (e.g. football club, Scouts, etc.)

27%

Expensive children’s parties or birthday gifts

16%

Living in the best neighbourhood

20%

A memorable school prom (e.g. hiring a limo, tuxedo, etc.)

15%

Sending your child to the best school

19%

Expensive holidays

15%

Quality baby equipment (e.g. prams, etc.)

PARENT PEER PRESSURE

48% of parents say they feel ‘parent peer pressure’. The top three items they feel pressurized on are the latest tech; fashionable clothing; and school trips and

excursions. Of those who ‘feel the pressure’ the additional cost burden to normal household expenditure is a whopping £865.

27I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS |

CHAPTER 6

THE TERRIBLE TEENSThis is when the costs really start to mount, and when it’s more important than ever that your children learn how to manage their money.

CHEAP PLACES FOR FASHION AND GADGETS

Your children will probably find out many places to pick up bargains themselves – they’re all so good online – but they are also prey to clever advertisers and could be conned into paying far more than they should.

Help them find good deals this way Go secondhand – eBay, obviously, has second-

hand and reconditioned gadgets for much less than the new price. It’s important to buy from a seller with 100% recommendations (and check their reviews). If you know your way around tech-nology it could be worth buying from an individ-ual but if not, go for a business.

Apple – Apple has a refurbished section with Mac products a few hundred pounds cheaper than new.

Factory shops – if designer is their thing then factory shops are a great way to pick up labels for less. They’re all over the UK but particularly in the London area. Here are some top ones.

Online – Net-a-porter.com is a bit of a fashion favourite amongst those in the know. Expect top designers and check out its new sister site The Outnet.com, which sells more than 200 designer labels with discounts of up to 80%.

LEARN HOW TO MANAGE THEIR MONEY

Give them an allowance – as soon as you think they are mature enough to make their own deci-sions (at least by 13, ideally earlier).

Give them extra money – making opportunities at home – decide which chores they should do for free – and make sure they know that they have to do these whatever – and then offer them extra jobs to do around the house that you will pay them for.

Get them to find good deals for themselves – see below for a few places to start.

Help them get work locally – see some ideas on that below.

Allow them to make mistakes – if they make money mistakes now they will learn from them in a safe environment and they’re unlikely to lose very much money. Better that they do that at this stage than lose a lot more when they leave home.

Get them to come up with savings goals – this ‘savings goals calculator’ at Sainsbury’s Bank is a great resource to give your kids the impetus to save.

CLUBS AND PRIVATE TUITION

Those with children under 18 spend, on average, £74

[a month?] for clubs and hobbies every month and

£55 on private tuition.' Sainsbury’s Bank

29I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS |

TIPS ON CUTTING THE COST OF KIDS’ ENTERTAINMENTFrom Melanie Wright

Cut holiday childcare costs by teaming up with other parentsIf you have friends with children at the same school and need to work during the school holidays, you can share childcare costs with other parents, or alternatively have their children for a couple of days a week in return for them having yours.

Buy a second-hand prom dressThere’s little point splashing out hundreds of pounds on a brand new prom dress that is only going to get one outing. Check out charity shops for prom dresses, or online auction sites. Another option is to customize a high street dress by sewing on some sequins or changing the length of the skirt to reduce the risk of your teen turning up in exactly the same outfit as someone else.

Redeem loyalty points for cheap days outCut the cost of days out during the school holidays by redeeming any loyalty points stored up on your Nectar card. Always check for any special offers which might boost the value of your points too.

Share parties with another familyChildren’s parties can be really expensive, especially if you are shouldering the cost on your own. Ask your child if they have any friends with birthdays around the same time who they can share a party with – you can then split the cost with the other parents, and share the workload too.

Take a picnic on days outKeep the cost of days out with the kids to a minimum by packing your own picnic rather than eating out. It’ll also save you the hassle of trawling round lots of different restaurants trying to find one which will please everyone.

Make the most of voucher codes and discounts to get money off days out and restaurant meals There are plenty of sites where you can track down bargains including myvouchercodes.co.uk, vouchercodes.co.uk and hotukdeals.com and don’t forget your Nectar offers.

Put them to workMake sure your teenagers don’t expect something for nothing. If there is a film they really want to see, or a concert they want to go to with their friends, get them to earn it by doing jobs for you around the home – it will keep them busy and help you out at the same time.

Sign them up for National Citizen ServiceIf your children are aged 15 to 17, you can sign them up for a two-week National Citizen Service (NCS) in the summer, where they will learn life and work skills and give something back to their local community. Thanks to Government-funding, this won’t set you back more than £50 and the University and Colleges Admission Service (UCAS) recommends students include NCS in their personal statement when they apply for higher education. Find out more at www.ncsyes.co.uk.

Cut the cost of travelIf your child is aged between 16 and 25, they can get a third of all rail travel with a Young Person’s Railcard. The card costs £30 for a year, but it will usually have paid for itself in just three or four trips. If your children are younger than this, you can apply for a Family and Friends Railcard which covers up to four adults when travelling with up to four children aged between five and 15. The card again costs £30 for a year and you’ll get a third off adult tickets and 60% off for children on most rail fares.

HOW TEENS CAN GET WORK

There are many work opportunities for teens both online and offline. They will need your help finding them – and will probably need you to go with them for the initial interview – but once they’ve started with one job it will be easier for them to find others.

What’s in your area?help your teen research your area to see where the work opportunities are. If you’re by the seaside it could be work in hotels, restaurants, cafes and maybe deck chair operators in the summer. In the countryside it could be work on local farms, fruit pickers, work in local stables or tea shops. In the towns it could be Saturday shop work, cafes and restaurants, delivering leaflets.

Online surveys Teens are specifically wanted by some online survey companies like The OpinionPanel Community which is looking for 16-30 year-olds to make a bit of cash by doing online surveys. They can get £1-2 in shopping vouchers for each online survey completed, so it’s not megabucks but, after a while, it could add up to enough for some cool trainers.

BabysittingTeenagers can babysit in the neighbourhood starting with families you know and then, once they get references from them, putting leaflets through doors and on local noticeboards to get more work. It may also be possible to get work through an agency like Sitters.co.uk but they will need to get a DBS (Disclosure and Barring Service) check first which will cost around £60.

Source: Sainsbury’s Bank

52%

Significant birthday celebrations – 16th / 18th/21st

50%

Driving lessons

40%

Money towards their wedding

38%

First car

28%

University fees / living expenses

8%

Gap year travel plans

21%

Deposit for property purchase

8%

None of the above

18%

Regular financial top-ups to income

11%

Don’t know

23%

Deposit for rent / help with rent

PARTY LIKE IT’S 1999 – MUM AND DAD WILL PAY!

52% of parents expect to pay for significant birthday parties for their older children (16, 18 and 21 year celebrations). In fact older children can pose quite a financial burden.

Here’s what parents are expecting to pay out for – or have already:

Parents are also more likely to put their hands in their pockets for driving lessons, weddings, cars and University.

31I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS |

CHAPTER 7

INVESTING FOR YOUR KIDSOn average, as we found from interviewing mums and dads across the UK, parents expect to keep supporting their children until they’re 29. However you can potentially bring that down a little by investing for their future now. Thanks to compound interest, small investments put in when they’re little can grow into impressive amounts when they’re older.

Also, investing for children is a lot easier than it used to be. There are a few children’s investments to choose from and, with some of them, the government gives you extra cash to put in, which is a bonus!

33I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS |

JUNIOR ISAS

Junior ISAs were introduced as the long-term replacement for Child Trust Funds in November 2011. You (and other members of the family) can save up to £4,080 into a Junior ISA for your child or grandchild per tax year (April 6th to April 5th).

The Junior ISA is held in the child’s name and money can be withdrawn when they turn 18. The money could be used to offset the costs of university fees or towards the deposit for a new home or simply to give them a good start in life.

Junior ISAs have the same tax benefits as adult ISAs – in other words you don’t pay tax on any gains you make on the money you’ve invested in them.

Like adult ISAs, there are two types of JISAs:

Cash Junior ISAsThese are like savings accounts that you get at a bank or building society but your child won’t pay tax on the gains.

Stocks & Shares Junior ISAsThese are mostly stock market funds where the money is invested in a variety of companies to spread the risk.

Your child can have one or both types of JISA.

You don’t have to put in the full £4,080 per tax year. Even if you manage a minimum of £10 a month (that’s what the stocks and shares funds usually ask for as a minimum) it will grow.

Find out more about JISA rules and how to get one at the Government’s website here.

PENSIONS

Yes, children can have pensions. Even babies can have pensions!

Anyone who isn’t working (and that includes babies). If they’re not working, someone else can put in up to £2,880 per year into a private pension for them – like a stakeholder pension – and, as with any pension, the government adds in the tax they would have paid on that money. If they manage to put in the whole £2,880 then that means the fund will immediately grow to £3,600 thanks to the tax-back.

The £2,880 also falls under the £3,000 annual gift limit for inheritance tax (IHT), thereby exempting it even if you die within seven years. This is one way of transferring money IHT-free to a child.

Save £300 a month from birth until age 18 into a good pension and your child’s pot could be worth £1.03 million when they come to retire even if they make no further contributions (assuming a 5% annual return and retirement at age 65).

The pros of investing in a pension for your children are primarily the tax benefits but you could also take a view that it’s better for them not to have access to this money until they’re sensible enough to know what to do with it! The cons are that you may not be around when they come to benefit from the money. Also you should check that the money can be transferred to a nominated person if your child dies before they can take their pension.

PREMIUM BONDS

Parents and grandparents can buy Premium Bonds on behalf of under-16s.

The minimum purchase is £100 worth of bonds and the maximum holding is £30,000.

Premium Bonds shouldn’t be seen as serious investments for your child. The average return on them is equivalent to a 1.5% tax-free interest rate. The odds of a single bond winning in any one month are 24,000 to 1, but each month you’re in with a chance of receiving a tax-free cheque for a sum ranging from £25 to £1 million.

So if you would like to give your child the fun of a flutter, it could be a nice little extra for them.

CHILDREN’S SAVINGS ACCOUNTS

Some bank accounts are specifically designed for children. Generally the best ones are those that restrict access.

You can find more information in our article on investing for children here.

Source: Sainsbury’s Bank

THE COST OF ADULTHOOD – WHAT YOUR TEENAGERS HAVE TO SAVE UP FOR

2015/2016 Source

£27,219 Thisismoney.co.ukAverage car

£29,127 Lslps.co.ukAverage first-time buyer deposit

£27,000 (free in Scotland)

Gov.ukUniversity tuition fees (three years)

£40,164 £40,164Average London student living costs per year

£728 HomeletAverage UK monthly rent

Average property £185,698 Land registry

National av. Wage £27,195 ONS

Average student living costs (three years) £36,168 NUS

Average London monthly flat rent

£1,433 Homelet

Average cost of a wedding for 18-30 year-olds

£21,109 Sainsbury’s Bank

Cost of learning to drive £1,320 Confused.com

35I’M NOT MADE OF MONEY! BUDGETING TIPS FOR STRESSED PARENTS |

We’re all busy people these days, but put ‘sort out insurance’ at the top of your to do list – make time to get it done and then you can get on with the more exciting aspects of your life, safe in the knowledge that you’ve done your bit to look after your loved ones.

Take a quick peek at your home contents insuranceAs well as protecting your lives, it’s also worth a quick check of your home insurance policy to ensure that the level of cover you have is still adequate now that there’s an extra little person in the household – not to mention all their toys, pushchairs, clothes and christening gifts from family and friends.

Time to make or update your willMaking a will sounds a dull and dreary exercise and one that too many people put off as they don’t think it’s worth worrying about until their later years, but it’s something to think seriously about now, particularly with your new child to consider.

Whilst a will allows you to decide what happens to your wealth and possessions when you die, it also it enables you to name a guardian(s) for your child in case the worst happens – rather than leaving the courts to decide.

Making a will is even more important if you and your partner are not married. If you die with no will in place, your unmarried partner is not automatically legally entitled to anything and may have to go through the courts to inherit.

You can use a will-writing service or do it yourself, but unless you’re pretty clued up when it comes to legal matters then you’re probably best speaking to a local solicitor who can talk you through the options in a language that you’ll understand.

TIPS ON HOW TO PROTECT YOUR FAMILY’S INCOME from Andrew Hagger. (Moneycomms.co.uk)

Once your new bundle of joy arrives your priorities in life will change and protecting your child will be one of your main responsibilities for many years to come.

As well as keeping them healthy and happy and helping them to prosper as they grow it’s equally important to review your insurance arrangements to protect your young ones in case one of you falls seriously ill or worse.

For example, the last thing you’d want the surviving spouse to have to face would be having to sell the family home and move into something smaller and less suitable because of financial constraints.

Don’t think of insurance as a needless expense that eats into your bank balance every month, but more in terms of a protective brick wall that surrounds and helps to look after you and your closest family.

Check what protection cover you’ve got alreadyWhen looking at your finances it’s important to check what’s in place already before you sign up for a new product or policy – after all there’s no point paying for something that you’ve already got.

For example your employer may offer you benefits as part of your employment package such as death in service cover, private medical insurance, income protection and sick pay – so find out what’s in place

already before speaking to an adviser about taking out any new policies.

Don’t scrimp on Life InsuranceBecoming a parent should act as a trigger to take out some life insurance cover (if you don’t have any) or to review your existing policies to ensure they are sufficient to meet your needs.

It’s not a difficult thing to sort and it doesn’t have to cost the earth but it’s worth the financial outlay because of the peace of mind it will give you, knowing that those closest to you will be looked after in case the worst happens.

The amount of cover you need will depend on your own particular circumstances, including any existing policies or insurance provided by your employer. If you need advice then an Independent Financial Adviser (IFA) will be able to guide you and help select something that works for you and yours.

An IFA will give you various options but at least you’ll have all the figures in front of you and will be able to select something that works best for your family – and remember insurance isn’t set in stone, you always have the option to increase or amend your cover at a later date if your circumstances change.

Critical illness cover is important tooIt’s not just death that can severely impact the family finances – in fact there is a far greater chance that a parent will suffer a critical illness that prevents them from working and contributing fully to the family budget.

As with all insurances, don’t dismiss it until you’ve found out how much it costs and what level of financial protection it will give your whole family – it’s always better to be prepared if you can afford it rather than taking a flyer and crossing your fingers, hoping that everything will be ok.

Protection IS important - Don’t put it off until next monthInsurance of any kind is a bit like a game of chance – who knows you may go through life without having an accident in the car, having your house broken into or falling ill whilst on holiday, but when you weigh up the cost of the monthly premium against what you could lose if things go awry, then surely taking a chance with your family’s future just isn’t worth the gamble.

SO WITH ALL THESE TIPS AND TRICKS YOU SHOULD BE FEELING A LOT RICHER AS A FAMILY NOW!

There are always more ways to save and make money as a family too, and both MoneyMagpie.com and Sainsbury’s Bank have lots more information on what you and your children can do to make the most of your cash.

Keep up-to-date with the latest offers, money help and even competitions with the weekly free MoneyMagpie newsletter and follow us on Twitter @MoneyMagpie, Facebook and Pinterest.

Aso, if you have any questions about anything in this eBook, contact us at editorial@moneymagpie.com and we’ll do our best to help!

Love

Jasmine