Essential Tips for Family Money Management

Trying to manage your family finances can be a balancing act. From everyday outgoings to unexpected expenses, there’s a lot to consider.

If you’re looking for ways to get a better handle on your money (a key part of living a sustainable lifestyle), here are some ideas to help keep things on an even keel.  

Why do we need to budget? 

Before we look at ways to manage our money better, start with a budget. This is the basis for knowing where you are in terms of your household finances. It tells you what your income and outgoings are and will, in turn, put you in a good position if the unexpected happens like a car breakdown or an out-of-the-blue bill. 

Begin by looking at your bank statements from the last six months. You can see how much you spend on things like utility bills and your child’s nursery fees. From there, you can set aside money each month for these outgoings, plus savings. In time, you can build a savings pot that can be used for things like a family holiday, birthday presents, or emergencies like a broken boiler.  

It's important to be aware of external issues when budgeting. Rising household costs, for instance, mean that staying on top of your budget requires careful attention. But you can make adjustments elsewhere to even out your outgoings. 

1. Smart food shopping

Before heading to the supermarket, plan meals for the week ahead and create a detailed shopping list. This helps you avoid impulse purchases that inflate your bill. 

When planning these meals, try to choose dishes that use non-perishable items as these can be bought in bulk, leading to significant savings. Staples like pasta, rice, and tinned goods can all be bought in one go at an affordable price point. Switching to own-brand products can also make a difference to your overall spending without compromising on quality.

Also, take full advantage of any supermarket loyalty schemes. These often provide discounts and money-back offers over time. 

2. Energy efficiency at home

Reducing energy consumption at home leads to lower bills and a more sustainable lifestyle. Swapping traditional light bulbs for LED alternatives cuts electricity use and extends bulb life. 

Other energy efficient tips include: 

• Unplug devices when they're not in use – This prevents unnecessary power consumption. 

• Avoid putting the heating on –Simple changes such as layering up, using draught excluders, and keeping doors closed can make a home feel cosier without increasing energy costs. Investing in warm blankets and thick curtains also pays off in the long run by reducing the need for excessive heating.

3. Choosing the right family car

Owning a car is often essential for family life, but the costs can quickly add up. Choosing a fuel-efficient or hybrid vehicle lowers petrol expenses and reduces long-term running costs.

Additionally, regular car maintenance, including checking tyre pressure, servicing the engine, and topping up oil levels, prevents expensive breakdowns and prolongs the life of your vehicle. 

If multiple family members drive in your household, look into multi-car insurance policies. These can provide savings compared to insuring each vehicle separately. 

4. Smart subscription & bill management

As part of your budget, regularly review household subscriptions and bills to avoid overpaying. Cancel unused subscriptions and compare providers for broadband, insurance, and energy. 

Switching to a better deal doesn’t take long, and many providers offer incentives for new customers, making it worthwhile to explore alternatives at the end of a contract.

5. Teaching kids good money habits

Encouraging our kids to save a portion of their pocket money will help them to learn about budgeting and the benefits of saving up their money. You can help set savings goals for them and they then have the independence to decide what to do with the money they save.

Simple tools like pocket money jars, junior savings accounts, and financial education apps make learning about money engaging and practical. 

Managing family finances effectively doesn’t require drastic changes. By making mindful choices about spending and saving, you can create financial stability and peace of mind for your household.