Most of us like to have a handle on our finances, but when you have kids, taking control of your money is even more important. As a parent, you want to be able to provide for your children now, but it’s also important to look to the future. If your finances aren’t quite as straightforward as you’d like, here are some tips to help you organized.
Working out a suitable budget
When you have a family, a budget can be really useful. Keeping an eye on what’s going in, and what’s coming out prevents overspending. It may also help you to identify areas where you could make savings. At the end of every month, start working on a budget for next month. Your budget should include all your regular payments, plus any one-off fees you expect to encounter in the month ahead. If you’re going on holiday, for example, you’ll need to factor in spending money. Once you’ve got a figure in both your incoming and outgoing columns, you can work out how much you have available to spend or save.
Claiming what is owed to you
None of us like asking for money, but if you’re owed money, you have a right to ask for it back. This may cover everything from loans you’ve offered friends and family to business costs and PPI claims. If you’ve taken out a loan or you’ve had a credit card for a long time, it’s worth investigating whether you’re owed anything. Don’t be put off if you don’t know how to make a PPI claim. There are step by step guides online, or you can get in touch with a company that will do all the legwork for you. If you run a business, and you are owed money, send a reminder letter and specify a deadline. If you still haven’t been paid after several attempts, it’s a good idea to contact a debt collection agency. If you have outstanding payments due from friends or relatives, issue a gentle reminder.
Planning for the future
It’s always beneficial to have one foot in the future, especially when you have kids. Try and put money aside for university and weddings, as well as family holidays and home makeovers. It’s also a good idea to have a rainy day fund. You never know when your financial circumstances could change or an unexpected outlay may come along. Make sure you have insurance. If you run a business or you’re self-employed, are you covered if anything goes wrong or you have to take a long time off sick, for example? It’s always useful for parents to have life insurance. Although you may not want to think about the days when you won’t be here, it’ll give you peace of mind to know that your children will be protected financially. If you don’t already have savings accounts or insurance plans sorted, don’t panic. Arrange an informal meeting with a financial adviser, and start taking steps to getting your finances and your future in order.
If you’re a parent, it pays to get your finances in order. Hopefully, these tips will come in handy.
