Don't Let the Cost of Bringing Up Kids Push You Into Debt

With the basic cost of bringing up a child rising faster than inflation, IVA experts Freeman Jones advise parents to take action with their finances in order to prevent money problems further down the line.

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Salford, Manchester, M50 2GQ (PRWEB) September 07, 2012

Insolvency specialists http://www.FreemanJones.co.uk have advised parents to review their spending habits when it comes to raising kids, in order to help protect their finances in the current climate.

The comments follow the new research from Child Poverty Action Group, funded by the Joseph Rowntree Foundation, which details the average cost of bringing up a child in 2012. The findings indicate that the typical overall cost of raising a child up to the age of 18 stands at £143,000 - equivalent of £150 a week to meet their basic needs.

However, with the basic cost of bringing up a child rising faster than Consumer Price Index (CPI) inflation, and wage freezes and child benefit cuts squeezing many family budgets, many parents are finding it harder than ever to cover costs.

Furthermore, with the growing cost of childcare adding as much as £60,000 to the total cost of raising a child, and a full-time job on National Minimum Wage not enough to meet the basic minimum costs of childhood, some parents could end up facing financial problems if they don't get their finances in order.

A spokesperson for Freeman Jones commented: "In the current climate, with rising costs exceeding wages for many people, it's a more expensive time than ever to be a parent.

"Particularly at this time of year, with kids heading back to school again after the summer break, many families could see their purse strings stretched even further when it comes to covering the cost of school uniform, stationery, lunches, school trips, and so on.

"And it's not just raising kids up to school-leaving age that could cost parents a fortune if they're not careful. With older kids heading off to university or perhaps temporarily back at home after graduation, the Bank of Mum and Dad is often still expected to pay out.

"However, with all the other monthly essentials to take care of too - from heating & lighting and food, to mortgage payments and fuel costs - it's crucial that enough money is set aside each month to cover all costs.

"A carefully planned budget is the best place to start. Taking a close look at everything you earn, how it's spent, what debts and savings you have: this could really help you to work out where you stand with your finances and how much you can realistically afford to spend on your monthly outgoings - not to mention where you could cut back on non-essential spending on the kids.

"Planning ahead now could help you to take some pressure off your finances in the future too. If you can afford to put some money aside every month now, it could go a long way to covering future costs for your kids, e.g. college/university fees or helping them out with a deposit for their first flat/home.

"In terms of reducing the costs of bringing up kids now, being a bit more economical with your spending could go a long way. When it comes to things such as school uniform, recycling hand-me-downs and making repairs could help you to avoid the expense of buying brand new.

"If you find that you're seriously struggling to afford the cost of raising your kids, it could be a sign that you have a more serious underlying problem with your finances. If you're in this position, you should get some professional advice sooner rather than later, so you can deal with the problem."

-ENDS-

Notes to Editors

Freeman Jones is a licensed Insolvency Practice. Its Insolvency Practitioners are all members of the Association of Business Recovery Professionals (known as R3) and licensed by either The Insolvency Service (part of the Department for Business, Innovation and Skills) or The Insolvency Practitioners Association (IPA).

The company is a member of the Think Money Group, one of the UK's leading providers of financial solutions. It is also a member of DEMSA, the Debt Managers Standards Association.

For more information, visit the Freeman Jones website at
http://www.freemanjones.co.uk

Contact:
Melanie Taylor
Freeman Jones
Melanie.Taylor (at) freemanjones (dot) co (dot) uk
Tel: 0845 056 6480


Contact

  • Melanie Taylor
    Melanie.Taylor@freemanjones.com
    0845 056 6480
    Email