Raising a Child? Here’s How to Save Money

Having a child is one of the most expensive decisions you can make. Recent figures from our Savings and Resilience Barometer hammer the point home. Couples with kids spent an average of £6,969 more each year than couples without. Adding in the impact of inflation (at an assumed rate of 3% a year) over 18 years, this comes to £163,175.

Managing your finances as a parent

Here are our five top tips for any parents feeling the pinch.

Take Advantage of Childcare Perks

Working parents of two-year-olds are now eligible for 15 hours a week of free childcare during term time. This can be a huge help in reducing childcare costs.

Free childcare can be a huge help

Make the Most of Child Benefit

You can get £1,331 a year for your first child, then £881 a year for any more children you have. This can be a significant help in managing the costs of raising a child.

Think About Other Benefits

Check other help that could be available from the government, including the childcare parts of Tax Credits and Universal Credit. Every little bit helps when it comes to managing the costs of raising a child.

Plan Ahead

One of the best ways to help yourself as a parent is to plan ahead. Think about your financial goals and how you can achieve them.

Give the Kids a Head Start

Children have time on their side when it comes to money. Anything you invest in a HL Junior ISA should have more time to grow.

Give your kids a head start

By following these tips, you can help manage the costs of raising a child and give your kids the best possible start in life.