AD. Parenting comes with various obstacles, many of which you never saw coming. Amid the teething stages, the potty training, and teaching your child their ABCs, you will also need to think about your financial health. Unfortunately, it is very common for parents to go through at least some money problems, often due to unexpected costs. So, how do you overcome them? If you’re struggling financially as a parent or you simply want to learn some tips to keep financially stable in the long term, this guide is for you.
[Photo by Karola G]
How to Overcome Financial Hardships
Create a Budget
As a parent, it’s crucial to create a budget. No matter your income or the cost of your bills, you need to know where your money is going each month. If you’re struggling, a tighter budget is very helpful. In your budget, be sure to track all expenses, including things like:
- Mortgage/rent
- Utility bills
- Food shopping
- Childcare
If you can, find ways to cut some of these costs. That might mean looking for free childcare grants, batch cooking meals, or saving energy at home.
Remortgage Your Home When it’s Time
Bills can quickly become overwhelming for parents, and that includes paying the mortgage. It is important to know when the best time to remortgage your home is to avoid the Standard Variable Rate, which can end up being far more expensive and leave you out of pocket. It’s important to speak to a mortgage advisor before making any moves, though. One like Everest Mortgages will help you make the best decision. Generally, it’s best to remortgage your home when:
- Your mortgage deal ends
- Your home’s value has increased
- You want to switch mortgage types
If you’re in a particularly tight spot and it’s financially reasonable for you to do so, remortgaging your home can release some of its equity to you, giving you access to funds you might need. For example, home improvements to make more space for your family.
Cut Back on Non-Essential Expenses
Are you paying for things you don’t really need? While it’s nice to have things like subscriptions and takeaway food, it will only cost you more in the long run. Cut back on these while you’re struggling, perhaps with the goal of getting them back once you’re financially healthier. You can also look into ways to save on subscriptions, such as using a Spotify Family Premium account rather than individual ones for the whole family.
Use Community Resources and Benefits
There are plenty of community resources and benefits to help parents, including:
- Food Banks: There are thousands of food banks in the UK, and you can find one close to you here. People donate to food banks, which means you can access food and other essential items for free.
- Benefits: You may be eligible for benefits, such as child benefit and free school meals. This can enormously reduce financial stress and save you money. For those with low income, Universal Credit can also help boost their incoming money.
- Grants: Plenty of UK charities offer grants to low-income families, so it’s worth checking those out, as well as your eligibility. For example, there are specific grants for free childcare.
- Libraries: Libraries are comfortable community spaces that offer access to free physical books, e-books, audiobooks, DVDs, and even sometimes video games! Plus, they provide a study and work space, as well as support for learning new skills or finding new jobs. It’s worth making the most of your local library.
Struggling financially as a parent is never easy, but rest assured, there is support out there. If you own your own home and you’re just going through a rough but temporary financial patch, remortgaging your home can make a huge difference. If you’re struggling because of low income, there is help available, such as grants for childcare and community spaces.
