Improving Your Savings as a Family: Why is it Important and How Should You Do it?

Amid the ongoing cost-of-living crisis in the UK, there has never been a better time to start taking family finances more seriously. From sensible spending to prudent saving, it’s always worth knowing some of the most effective money tactics for the whole household now.

First steps

Before you make any changes, it’s important to take a wider look at your incoming and outgoing funds. From there, you should try to identify if it’s possible to improve the way you manage your money. This process should be compartmentalised, with a focus on the following areas.

• Know your reasons

Work out why saving more money or improving your personal finances is so important to you and your family. For example, are you working towards paying for a deposit on your first home, or are you saving for something specific, like a new car? Most long-term financial commitments require you to prove that you can borrow sensibly. You may choose to explore different methods that help you improve your credit score to secure better rates and faster success.

• Consider food costs

Rising food costs should never be overlooked. By midsummer in 2023, the price of bread, butter and cheese increased by over 30% over a two-year period. With such essential items costing more than ever before, it’s easy for simple spending commitments to feel overwhelming – and potentially leave you short at the end of the month. As well as your weekly food bill, try to keep an eye on rising inflation.

• Make small savings, often

Over time, saving money on a smaller scale contributes to increased spending power. There’s nothing wrong or shameful about opting for second-hand clothing or equipment for school, for example, especially if your children are growing up quickly. Some family expenses are unavoidable, but you can save money by keeping this simple. When it comes to birthdays, celebrate with thoughtfulness and purpose, not excess.

• Do your research first

Before you start saving for your family, it’s important to do your research. Not only will this help you to identify where you could start saving in the first place, but it should also point you towards the most suitable methods and approaches to suit your circumstances. New parents, for example, might benefit from certain government-led grants and initiatives. Getting organised will always help you to plan your savings more accurately, especially during the school holidays.

Remember that if you’re struggling to cope with your personal or family finances, help is available. Do not hesitate to contact your bank or seek confidential advice on debt and money.

This is a collaborative post.