Taking care of your family finances during the 5 year squeeze

Government plans to reduce the deficit have resulted in threatening increases in taxes and cuts in spending, too. Whilst there is hope that the deficit could be eradicated by 2022, family finances are currently feeling the force of the necessary actions to achieve this.

As such, we all need to know how to save a little bit of extra money to see us through the next 5 years. By following these simple tips from icount, you will be on the road to success and saving your family money before you know it.

Be open to change

The first tip to saving yourself a bit of cash is to be prepared to shop elsewhere. We all know supermarkets love to compete with one another and at times, prices on our family’s favourite products can rise and drop at different times. It isn’t just supermarkets that do this, either! When you’re aware of it, you’ll notice that many retail stores hike up or reduce their prices, depending on what their competitors are doing at the time.

To make sure you’re getting your shopping for the best bargain prices, be open to comparing supermarket and retail stores as you go, to get the best deal you can. Websites such as My Supermarket help to make this a lot easier.

Make sure to make the most out of card points supermarkets and cosmetic stores give you as it saves money in the long run, and you may even get some items free!

30 minutes of money management

Whether it’s as soon as you get in from work one day, or between the Coronation Street double bill, take a tiny 30 minutes every month to work through your finances and save yourself a bit of money.

Whether it’s finding a better savings account to the one you already have, or considering ways to better budget your spending, there’s always something that can be done to improve your finances and prepare your family for the future.

Image credit: Ota Photos

A penny goes a long way

Put some money in a jar every month, to go towards unexpected payments or bills that are a little higher than normal. That way you won't feel as though you are paying for costly additions to your month out of your everyday spending money.

Over time, this once small savings pot could quickly become a rather large rainy day fund. If you manage to save up quite a lot of money with these small monthly additions, think about opening a savings account specifically for this. Look for a savings account that you cannot open unless it's an emergency. It will prevent you from taking money out and it keeps it aside for the most important of times.

Additionally, keep a jar of loose pennies in that you know you will not spend. After a few months of collecting, take them into your local bank - you never know how many notes you could get back!

No use, get rid!

Find that you have a load of unwanted things in your house? Why not organise a car boot sale and sell old things you no longer want. Not only could it give you a small financial boost, it gives your unwanted goods to other people that may benefit from them.

Car boot sales are a good way to spend a morning every once in awhile, to make a few pounds and help someone else out.

Introduce the money management rule of thumb

It’s said that 50% of your monthly finances should go towards vital payments, 30% should be kept for you to spend and the final 20% should be put into your savings pot. It might seem a little strict to manage your money in this way but it will certainly benefit you during these tough few years and thereafter.

Spread the word

Tell your children. Encourage them to stick to a budget when buying sweets or toys. Emphasise the point of not spending all of your money at once and saving a little bit for another day.

Perhaps you could open a savings account for your children to get them started? Even just £2 a week will help and give them something to build on, and it will also teach them the importance of money management and saving, ready for the uncertain times ahead.

Image credit: Pexels

Simplify your shopping

Try to write out a shopping list before you go shopping, this way it will make you less likely to spontaneously buy items you do not necessarily need. Decide on a budget before you head out and add up the price of your items as you go so that you know how much you’ve spent when you approach the tills.

By following these simple steps you will be on the way to helping your family immediately, and you will definitely save more than you think. Remember, saving is key.

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5 Ways To Improve Your Credit Score

It’s fair to say that a new tax year doesn’t exactly evoke the same levels of excitement, nor inspiration for ‘new starts’, as a new calendar year. In truth, unless you file tax returns or are juggling ISAs, it’s a bit of a non-event.

But it is as good a time as any do a financial health check, and one important component of this is your credit score.

After all, if getting a mortgage, applying for finance to purchase a car or gaining any other types of loans in the future is something that could be a part of the plan, then it is well worth putting a bit of thought into how you can get your ducks in a row with regard to your credit file.

And the good news is it’s not really very labour intensive at all. Here are some quick and easy ways to boost your credit rating…

1. Check it!

Yep, the first port of call is to check your credit file. You can sign up with credit reference agencies like Noddle or ClearScore for free, and although the score itself may seem a bit arbitrary, you can quickly gather how well you are doing in a relative sense. More importantly, you’ll also get a breakdown of what is counting in your favour, and what isn’t. If you see anything you suspect is incorrect, it’s important that you act. You can either contact the relevant company, or take things further with a ‘notice of correction’. Bear in mind that any ‘blemishes’ will stay on your credit file for up to six years, so you certainly don’t want to be dragged down by any inaccuracies.

2. Register to vote

Another General Election is on its way, can you believe it! Anyway, it doesn’t matter which way you vote – or if you even vote at all – but it is vital that you register yourself on the electoral roll. For lenders, it’s a means of proving your address and ID, which would firm up any application for credit. It takes just a few minutes to register, and you can do it by clicking here.

3. Use your credit card wisely

In the eyes of lenders, having no credit is every bit as bad as having poor credit. A credit card is thus one of the best means to demonstrate that you can manage debt sensibly. Use it each month, but be sure to clear the balance each time. If you’re already juggling high balances, then put all your energies into whittling these down – not only by setting money aside each month, but also by looking into things like consolidation loans or 0 per cent balance transfers. Ultimately the aim is to have as high a limit as possible, but to use as little of it as you can.

4. Be careful when you apply for credit

Each time you apply for a loan or some other form of credit, it leaves a footprint on your file as a result of what’s known as a ‘hard search’ by the lender. Too many footprints can indicate excessive hunger for credit or desperation in the eyes of lenders, which will thus do you harm. So when shopping around, be sure to use things like free eligibility calculators, and ensure that any quotes you apply for won’t leave a mark on your credit file. The website will typically indicate this beforehand.

5. Other bits of good practice

There are other little things you can do to help the cause. Get a mobile phone contract (if you don’t have one already). Don’t ever withdraw cash from a credit card. Stay away from payday loans. Avoid excessive online gambling. Cancel any unused credit or store cards. And focus on getting any debt you may have under control. They may all sound like minor things, but all these small gains can really help your cause when the time to apply for credit comes. Good practice now will see you reap the benefits later.

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Starting Your Nest Egg Late in the Shadow of Brexit

The Brexit vote reverberated loudly across Britain. We are still dealing with the aftermath of the shock of it all. Everyone was affected in some way but it seems none were more immediately affected by Brexit than those who have already retired.

Declining value in savings

As part of their savings strategy, many retirees had IRAs (Individual Retirement Accounts) and savings in the pound. Post-Brexit, they have seen their portfolios decrease in value when the pound fell after the Brexit vote. The decline in the value of the pound has largely levelled off at the moment, but the overall value of the currency has not rebounded. The consequence of this is many retirees holding IRAs that will likely not see growth for quite some time.

What if you’re behind on your retirement savings? How can you catch up in the shadow of Brexit when your time is getting short? Don’t despair: there are steps you can take to get your retirement back on track.

Protect what you have

No one can say for certain what Britain’s economic future will look like. No government exit plan has yet been unveiled. Those who have already retired or have begun a savings portfolio need to first take steps to protect the investments they have. The best way to do that is to diversify your portfolio. This includes investments in economies outside of Britain.

Increase your savings

You’ll need to put aside as much as you can if you’ve gotten behind on your retirement savings. You can calculate how much you can expect from your state pension and how much you’ll need to spend each year to maintain the lifestyle you want.

Once you have your figures in hand, look at how much you’re saving each month, then find a way to increase it by as much as you possibly can.

If your employer offers a pension plan, increase your contributions each month. If it is a plan that includes employer matching contributions, you need to put as much as possible into this fund.

Clear your debts

It is just common sense that your money will go further if you don’t have a pile of debts to pay on each month. One way to help catch up if you’re behind on your retirement savings is to pay off your debts as quickly as possible, then take the funds you would normally pay out to debts and add them to your retirement savings.

Downsizing can help

One strategy many people use is to plan to include the value of their homes as part of their retirement. Take a critical look at your home. Do you really need that much space in retirement? If not, consider selling it. Or converting all or part of it into rental property. Renting will give you an additional income in retirement.

With the final stages of Brexit still on the horizon and the continued uncertainty of the repercussions of that historic vote, the best course of action for the people of Britain is simple: don’t panic. Guard your savings through diversifying your portfolio. The rest of the best advice falls along a simple line of reasoning: use some common sense measures and you can weather this Brexit storm.

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It’s The End Of The Academic Year – Parents, How Are You Managing YOUR Money?

It’s the end of the academic year and amongst the celebrations of degrees and diplomas comes the realisation that, despite the financial burden of student loans, the spending hasn’t stopped quite yet.

I’m sure that loads of students fail to realise that trying to get a job can be a costly process. There’s the cost of an interview outfit , new shoes and haircuts. There’s train and bus fares or fuel for cars.

Flickr:  Archie Campbell

And if our graduates do get a job there’s the cost of actually being employed – again transport, clothing, lunches, office socialising. Or even the costs of further education and vocational training which they may be expected to fund themselves in order to secure a promotion.

I have been quite shocked to find that it is seemingly the norm for companies in certain industries to offer positions to new graduates on the basis which are unpaid on the basis that they are offering ‘valuable experience’. The word ‘exploitation’ springs to mind.

However, we must remain positive, encouraging and upbeat, despite most of us being hard-nosed veterans of the work arena. All we can do is offer our advice quietly and consistently in the background. I specialise in ‘nagging aunt’ – can you tell?

My niece, Emily has recently graduated with First Class Honours in Film Production and has a small runaround car which, typically now she really needs it, has developed a fault with the breaks when most of her interviews are easily reached by car. This is an expense she neither wants nor can afford.

I remember my dad shelling out for two return tickets to London to take me to visit IPC Magazines. In those days I was convinced journalism was my calling and after 20 years in marketing, I’m now a blogger so perhaps dad was right after all.

For parents, at such a critical time for their young adult children, the ability to help them is very important. Very few of our youngsters leave college and walk straight into a well paying job that allows them to pay their way – however much we may feel it is time for them to stand on their own two feet!

But the ‘Bank of Mum & Dad’ can only take so much and there may be times when a small cash injection in the form of a short term loan would be very welcome.

Flickr:  Blatant World

You can bet that extra bills will appear exactly when you don’t need them. I have mentioned in one of my previous posts that I really need to be more organised and diarise my insurance renewal dates!

How many of us breathe a sigh of relief once we have paid for the family holiday (and let’s not even start talking about the price hikes we parents have to put up with from day 1 of every single school holiday!), only to find we’ve forgotten about the MOT, the insurance or the fact that we really need a safer set of tyres.

It’s a bit like that film with Tom Hanks “The Money Pit” – everywhere you turn, there’s a new expense.

My nieces and nephew are in their late teens and early twenties whereas my two are just 8 and 7. For us this means a double set of new school uniform for September and then Caitlin’s birthday in November, her cousins’ birthdays in November, December and January and then Christmas!

As you know we have been trying to save for Christmas but inevitably there will be something that ‘appears’ out of the ether when we least expect it.

For example, our boiler has decided to develop a fault with one of its sensors. It has ‘moods’ in the morning. I know how it feels. And what about if you are also caring for your elderly parents? You may find yourself chipping in for cleaning, garden services, extra food or medical supplies.

It’s so important to make a budget and review it regularly. July is a great time to do a little financial housekeeping and check that you are on course to cope with the expenditure you know about and to put in place contingency plans for those costs you don’t!

If we want to really help our youngsters, teaching them to budget and cope with unexpected bills is worth its weight in gold.

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13 Budgeting Tips For July To December

We are half way through 2016 already - and I suspect many of us are very glad about that, given the year it's been so far.

Image credit:  TaxCredits.net

Back in January, here at Hobbis Towers we resolved that this would be the year we made sure we budgeted properly for Christmas and Caitlin's birthday.  I also have nieces and a nephew with birthdays in November, December and January.  It's quite an expensive time for us.

Lots of you started the 365 Day 1p Savings Challenge. This is a great way to save over £650 by the end of the year by saving the number of pennies which matches the number of the day out of 365 / 366 days in the year.

But have you kept it up?  I must admit I tend to fall a bit behind then make one large payment to cover what we owe!

On day one, 1st January you save 1p.  by 1st June, the 153rd day in the year, you're saving £1.53 and so on right up to the 31st December where, this year, you'll be putting away £3.66 as it's a Leap Year.

We found our template at Skint Dad.

The 365 Day 1p Saving Challenge

It's easy when you start off but as you get later into the year, you're paying over £2 - £3 per day into you savings jar - but this is still about the price of a coffee each day.

By the 31st December we will have saved £667.95 if we can stick to the plan.

You could still start the plan from 1st July and have around £500 by 31st December.

Otherwise, now is a very good time to sit down with your budget sheets and check that your outgoings are not exceeding your income.

I like to list any big ticket items coming up in addition to birthdays and Christmas and check we can cover them.  Both my car insurance and our house insurance fall in this second half of the year and we need to allocate enough time to get a number of quotes.

Unless it's a very good deal we never accept the automatic renewal premium quoted by our insurers as we know that the best deals often go to new customers with loyalty rarely being rewarded.

You can find an excellent guide to budgeting, including a template from Martin Lewis on the Money Saving Expert site here.

Here are some useful tips you may find handy to save some cash or get your finances in shape for 2016 Part II - all road-tested by the Hobbis family.

Lots of them you will already have heard of but it never hurts to have a reminder, does it?

Use Direct Debits (1)

Arrange to pay your bills by direct debit - including your credit card bills. It is too easy to forget to pay your monthly credit card bill which means you accrue interest and your credit rating may be affected - even by missing one payment.

Check out Guarantor Loans (2)

If you need a loan but your credit history is poor, or you haven't yet built up a credit history, take a look at guarantor loans where you can borrow up to £10,000 if you can get someone else to guarantee your loan for you. This means that if you have trouble paying, they will step in and make the repayments for you. Make sure you understand all the terms and conditions you are signing up to though.

Do your comparison shopping (3)

Don't buy anything online without checking whether there is a voucher discount code or cash back available from sites like topcashback.co.uk, myvouchercodes.co.uk or dealsdaddy.co.uk.

Invest in a restaurant discount card (4)

You can save significant amounts off eating out and taking kids to the cinema with a subscription card like Tastecard which can quickly pay for itself as it has loads of 2 for 1 deals or 50% at restaurants around the UK.  We use ours at Pizza Express for example.

Take a thermos (5)

Invest in a thermos.  When you out and about you can save a fortune on coffee shop lattes or just fill it with water to keep it cool and carry a Robinsons Squashd mini squash pod to give the kids a drink.

Get off and walk (6)

Walk some of the way - get off the bus a stop or two earlier.  It's a great way to build in some extra exercise.  In general we try to leave the car at home as much as possible to save on fuel costs.

Create a kids' party stash (7)

Buy kids' birthday cards, wrapping paper and party presents when you see them and in the sale. Create a mini stash so that you won't be caught out when that party invite card appears and you have 2 days to find a present.

Use your loyalty cards (8)

If for no other reason than that you might accrue enough points to give yourself a mini treat to perk you up when money is tight. I find that the Boots Advantage Card is quite generous, although Boots is not the cheapest chemist by far.  It does mean that I can have yet another red lippie to cheer myself up completely free.

Check out Ebay and learn how to snipe (9)

I saved a fortune buying kids' clothing bundles for my two when they were younger and I learned how to use a bid sniper which automatically bids for you up to an amount you specify to hopefully win the item during the final stages of bidding.  You know when a bid appears from nowhere topping yours and snatching your coveted item from under your nose, or when the price starts to rocket?  That's bid sniping in action.  You never know when they're there but you can do the same.  Try Goofbid.com where you can set up your own sniper using your current Ebay log in details.

You could also sell lots of the toys, books and kids' clothes you no longer want on Ebay too. Be aware though that there may be sellers fees and listing fees, plus an extra charge for using Paypal.  You need to do the maths to ensure that you are actually making a profit.

Create a savings jar (10)

At the end of each day, just chuck your loose change into it - perhaps 20ps and 50ps.  You'll be amazed how the total will rise or try the 365 day 1p savings challenge I mentioned earlier.

Check out Aldi and Lidl (11)

Since we swopped to Aldi about 9 months ago we have saved a small fortune.  I would say our weekly shopping basket (including the odd treat like a bunch of flowers or sweets) is about 30% less than the big four supermarkets without sacrificing the quality.  In fact, the quality of some of the produce is better.

I have also found that items such as Easter eggs and particularly their Christmas produce is excellent and much cheaper.  If you prefer to have everything branded, Aldi and Lidl may not be for you but I think once you see how much you save, like me, you'll probably wish you had started shopping there earlier.

Buy Own Brand rather than Premium Brand (12)

If you don't have an Aldi or Lidl near buy, you can also save quite a bit by choosing the supermarkets' own brands.  Very often food stuffs are produced in the same factory and then packaged into the different brand packaging with the accompanying variation in price.

We have tried this with various success, the only notable failure being coffee.  Pricier though it is, we still love our Gold Blend.

Write your Christmas present list now (13)

Lastly, I know it is ridiculously early but write your Christmas list now - particularly what you plan to put in the kids' stockings if you have them.  I always find it's relatively easy to budget for their main presents but I end up spend way too much on bits and pieces to go in their stocking.

Why not assign a financial limit for things like Christmas stockings and start to buy small items as you see them to avoid that mad panic in the last week of December. It's also a good time to buy teachers' presents or the general gifts you might give to people like your milkman or the window cleaner.

Hide them all in a drawer somewhere out of the way of prying eyes and little fingers.

The trick with all these tips is to work out ways to save money without compromising on your quality of life.  It can be done.

If you adopt some of these tips then you may be able to create a Christmas fund to relieve some of the pressure on your finances at the most expensive time of year.

*This is a collaborative post

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Kid's Birthday? That'll Be £545 Please.

There's no doubt that the costs involved in raising your kids are rising.

I don't know about you but there seems to be a new expense every two minutes - whether it's for school trips, kits for sports and after school activities and school shoes (which seem to last about 6-8 weeks before having to be replaced).

Christmas and birthdays are times when the expenses seem to ramp up even further.

As Princess Charlotte turns one today,  American Express® has carried out some research into exactly how the costs of a child's birthday can mount up - and the company has discovered that parents plan to spend, on average, £545 to celebrate their little one's birthday.

Now I'm not entirely sure who they asked because a straw poll of mums here in Dinas would find some who will pull out all the stops and others who will happily say "enough is enough" and impose a modest budget which covers all the bases without being overly extravagant.

Here's how the costs in American Express' research mounted up:-

Gifts - £122
Entertainment - £94
Party food - £91
Party venues - £90
New outfits - £85
Party bags - £62

And you don't escape the expense if you're a guest at a child's birthday.  Parents were found to spend on average £32 on presents and £28 on new party outfits.

I suspect that some of these parents are strangers to the words "Mothercare Sale" and are desperate to keep up with the Jones'.

I have always thought you could do away with a child's birthday party altogether and just go straight to handing out the party bag and slice of cake after school because that seems to be the main lure of attending these things.

In fact, if the Sugar Police in our schools weren't so hot on scanning each child for the merest hint of dried fruit in case something that could rot teeth has sneaked in, this is a scheme that would save parents hundreds of pounds each year.

Caitlin just before her first birthday in 2008

On the basis that I'd like to save Jamie Oliver the stress of starting another campaign, here are American Express' top tips to help you cut the costs when planning a child's birthday celebrations.

Venue

If the thought of having 20 children running round your house is too much to bear but you don’t want to hire a venue, then local parks or an outdoor play area can be the perfect location for a summer party. Just make sure to check the weather.

There's always your local soft play centre of course (and you know how fond I am of those).

Entertainment

Professional party entertainers are expensive, so keep the stress levels and costs down by doing it yourself. Ask friends or family members who could do simple activities such as face painting. I don't think you can go far wrong with the old favourite party games like Pass The Parcel of Musical Chairs. I did once ask the Husband to appear as Spiderman in a morph suit but he still hasn't "got back to me" on that one.

Party bags

Those little bags can often be the things that cause costs to rack up quickly. So get creative and make them yourself. One of the simplest ways to do this is to fill clear cellophane bags with sweets or pocket-money toys or even put a book into each bag.

Back to haunt the party-ware aisle in your local ASDA it is then. I still have a cupboard full of small bouncy balls and unsharpened pencils.  (Why can you not buy sharpened pencils any more?!).

Go halves

If a friend’s child has a birthday around the same date, then you could coordinate with their parents and throw a joint party. Your child would probably love to share the day with their friend, but you’ll also save money by splitting the cost of the party.

Keep it fun

If the planning becomes hard work, the party could end up feeling forced and often costs rise. Remind yourself to opt for the simpler, easier options. By keeping the guest list manageable and offering a few kinds of drinks and snacks, not only will this be more manageable for you and enjoyable for your child, but you can save some money.

This does, however, lead neatly into the social minefield of how many children to ask to your child's party.  Do you ask the whole class, their special buddies, just relatives? Whatever decision you make has the potential to upset somebody.

I think it's worth reminding ourselves that, in many instances, one or two nice presents, oodles of love and affection on the day, time spent on a favourite activity and perhaps one or two special friends to tea is probably all that is needed to give your child a memorable birthday.

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Have You Budgeted For The Cost Of Looking After Elderly Parents?

As a ‘baby boomer’ (born in 1964) I knew that having children late in life meant I had to budget not only for my pension, but also for the costs of university fees for my children.

The costs of residential care are staggering

What I suspect many of us born in that era did NOT expect was that the costs of caring for our elderly parents would also fall to us.

This is not an issue whilst our parents remain well and able to live relatively unassisted in their own home.

But, once a care home is needed, the costs involved are staggering.

Currently the average cost of nursing home care in England and Wales is over £800 a week (or over £41,000 a year) per person.

This figure can be even higher in certain parts of the UK or where the elderly person’s needs are particularly severe or they need to go to a specialist Elderly Mentally Infirm home (for example if they have dementia)

There may come a time when we have to help our parents make some difficult decisions

As of April 2016, if a parent has assets which exceed the value of £23,250, they have to pay the full cost of their care and the family home will be included in the calculation of assets.

If their assets are below £23,250, they still have to contribute to the cost of their care from their capital until their assets fall to £17,000.

Once the £17,000 is reached, any extra income will be taken more or less in full to contribute towards ongoing care costs.

The total amount you may have to pay is currently capped at £72,000, but this amount is based on what your local health authority calculates the care is worth and does not include board and lodging costs.  You can find a good explanation here.

You can see that an individual’s entire life savings and assets can be spent in just a few months.

And what happens when the money runs out?

In the event that a parent suffers from a chronic, or life threatening illness, funding may be available from the NHS which currently offers Continuing Health Care Funding which will pay the full cost of care where the person’s need is primarily health based.

A second type of NHS funding called “funded nursing care” is available where the individual has nursing needs and is looked after in a registered care home that employs registered nurses.

Funded nursing care provides funding at a rate of £110.89 a week towards the person’s care costs which still leaves roughly £700 a week to pay.

Obtaining this funding depends, of course, on meeting stringent NHS criteria. 

For most of us, we are looking at the sale of the family property and relying on our parents' assets to be sufficient to give them the best quality care possible.

Once these assets have been used up, it is likely to be us who bear the financial burden, although some assistance may be available from your local authority.

You can see that if one of your parents needs to go into a care home but the other is well enough to stay put, there is a clear dilemma about whether or not the family home has to be sold.

Does the healthier parent come to live with you with all the extra costs that this would entail – extra heating, lighting and food costs, not to mention the cost involved in adapting parts of the home to make them safer for your mum or dad?

Balancing your monthly outgoings may be much more of a challenge and cut backs will probably have to be made. 

Should you need financial assistance to help your carry out these home improvements and adaptations, you can consider borrowing up to £7,500 with a guarantor loan from a credit company such as UK Credit loans.

A guarantor loan is a type of unsecured personal loan where you get a friend, colleague or family member to back up your application.  They must be someone who is willing to step in to pay your monthly repayments if you can’t pay.  You may find this additional safety net reassuring with so many demands on your purse from so many different directions!

We never know what is around the corner and I think it is sensible to have a conversation with your parents as early as you can about their wishes and the financial implications of requiring residential care.

Having looked into the funding of care home fees, I am aware that this is something I will need to research in much greater detail so that we can make some sensible financial decisions as a family. 

The information I have given here is the tip of the iceberg and, as we know from the 2016 Budget, schemes such as this are prone to be frequently changed and thesholds altered. 

This is a far better approach than having to deal with sudden illness or even a bereavement whilst trying to decide whether your parents’ home has to be sold or worrying where the extra money is going to come from. 

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Six Futures We Really Need To Plan More For

We spend a lot of our time wondering about the future. Many of us worry about the future, but not specifically.

We go through life with a set of small anxieties in the back of our mind that never really go away. Not unless we take action to take care of it.

For ourselves, our family and children, we need to think more about our future.

Here are six things we should be taking action over.

Image Credit

Our finances 

We might try to be frugal and save money where we can. Especially if we want to put towards our savings. But our spending always has a way of creeping up on us. Particularly when the children are involved.

If you’ve been burned by overspending one time too many, it might be time to do it properly.

Prepare a budget as http://smallnotebook.org/2008/09/30/your-family-budget-step-by-step/ shows and stick to it. This budget should allow space for the nice things, but focus on the necessities.

Our parents 

When you grow more as an adult, if your parents are still with you they become a sense of worry. Or at least some apprehension about the future.

It’s a possibility that we should accept that in future they may need care. Care we might not be able to provide. Be prepared to talk to your aging parents about their retirement living and care.

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Our health 

A lot of us have followed the advice we’ve received about life to the fullest and seizing the moment in our youth. Whilst we wouldn’t take that back for anything, now’s the time we should focus more on our health.

As www.claybrooke.org.uk/high-blood-pressure-and-cholesterol-life-insurance shows, certain health risks can affect our life insurance. Our health no longer influences just us but how we can take care of others in our lives as well.

Our legacy

Speaking of the others in our lives, we spend a lot of time worrying about what we leave behind us for them. Not just in terms of the lessons we impart, but our legacy in value, too.

If we have valuable assets, we want to make sure they pass to the people we care about. The Money Advice Service can help you ensure everything’s prepared for them.

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Our children’s competence

Raising children is by no means easy. It takes hard work and a very keen eye to just feed, clothe and protect them. But we should also be preparing our children for life.

Competence and self-confidence are part of a self-feeding loop. Yet many parents only focus on one part of the equation. Make sure you take the time to guide your child with helpful skills.

Our guiding hand 

Making sure our child is able and confident isn’t the only thing we do for them, of course.

In a lot of ways, we act as their guiding hand.

One of the parts of our legacy we would like to leave behind is children who will do good in the world. But we don’t have to wait until they’re grown up.

Get them involved in helping people through things like volunteering early. That way we won’t have to worry quite so much about the future.

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Post Christmas Divorce Rush Predicted To Avoid Hike In UK Divorce Fees In April

Online divorce firm divorce-online.co.uk, the single biggest filer of divorce petitions in England and Wales, is predicting a big spike in divorce filings in January as couples rush to beat the Government's proposed hike in court fees to file a divorce.

Divorce is stressful enough, without the added financial worry

The fees will rise in April from £410 to £550 a massive 34% increase, despite the actual cost of processing a divorce having been calculated at £260.

A draft statutory instrument has been laid before parliament and unless the Government do a U turn in the next 3 months, the fees will be introduced at the start of the new financial year.

As one of the largest firms sending divorce petitions to the divorce centres, Divorce-Online are already warning potential divorcees of the coming rise.

Mark Keenan a spokesman for the company believes that the rise will prevent couples on modest means from formalising their split and many couples will be left in a legal limbo for years, separated but not able to finalise their divorce because of the sheer cost.

Since the withdrawal of legal aid in 2012 for divorce cases, the number of people looking for cheaper alternatives to traditional solicitor led divorce routes have rocketed using services provided by companies like Divorce Online.

As the cost of divorce in the UK rises, it is likely that even more couples will turn to the Internet to seek a more cost-effective alternative to the traditional high street legal practice.

Further information: contact mark.keenan@divorce-online.co.uk.  Twitter @mrdivorceonline

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Teach Your Kids To Save & Understand Money With The Jangle App

If only there was a way of solving the pocket money problem.  It's difficult to know when to give pocket money, how much and on what basis.  What if there was a way to teach kids about the value of money and empower them to make their own (guided choices) whilst earning their treats?

I recently got the opportunity to meet entrepreneur Sarah Willingham (Dragons Den) and the lovely people at Experian and Pfeg (Personal Finance Education Group - part of Young Enterprise) who have been busy creating an app for children aged 7-11 which will teach them how to save and, more importantly to understand the value of money.

Jangle is a clever piece of software which allows the creation of savings pots for specific goals such as buying an iPad or yet another Lego collection. (Ieuan has recently spotted the Millennium Falcon Lego set and I really don't think I'm emotionally ready for that level of foot pain and general frustration).

Caitlin, learning about coins

The child decides on a savings goal which is authorised by the parent.  The child can watch the pot grow as they earn (yes - you read that right - earn) the money by completing tasks around the house or selling unwanted toys or clothing.

Rather than just hand out pocket money or succumb to pleading and all-out stropping in the supermarket, Jangle gives parents a valuable negotiation tool, and children a framework for understanding that there is a direct correlation between earning and spending.

It will also teach children how to be a critical consumer and how to get the most from the money they save.

It's really important that children learn about finance at a young age because, by the time they reach their teens, spending patterns are generally firmly entrenched.

We all know students who have blown their student loan on nights out, beer and clothing before the end of the first term.

And we probably all have friends who live hand to mouth and struggle to put anything by for a rainy day, even though they don't deny themselves any treats.

To me, parenting is about teaching your offspring to survive and thrive in life - and educating them about finance is pretty key in my book.

Did you know that many adult money habits are set from the age of seven (Cambridge University/Money Advice Service (MAS) Research 2013), yet there is no statutory provision for financial education across UK primary schools (PFEG).

Pfeg (Personal Finance Education Group part of Young Enterprise) have found that, on average, children begin to receive pocket money aged seven, own their first mobile phone at eight, and purchase items online at 10, with one in five having used their parents’ or older siblings’ credit or debit card to purchase these items.

Children can open a bank account and have a debit card at 11. At 18 they can apply for a credit card or loan, and before they leave school they have to make crucial decisions about jobs, student loans, and living independently.

Now more so than ever, parents need to be able to talk to their children about how to manage money well but it’s not something that parents often find easy ·

Parents of young children are less likely than the average population to feel like they are good at managing their money (Experian Consumer Affairs TNT Research April 2015).  “Rather than waiting until their son or daughter has 'earned' the privilege of being treated to something new, six in ten parents admit they buy their children the latest trends and collectables as soon as they ask for them” (Skipton Building Society Research 2012).

It's so easy to cave in sometimes just for peace and quiet - but we are not helping our kids by doing this.

Actually it's already working.  Ieuan announced he wanted a transformable bat cave (a mere snip at £40) but then paused and said he was going to 'jangle it'.

The family cars are going to be spotless next year and I'm hoping the pocket money problem will be solved.

The Jangle app for iPad is available to download free from the IOS app store.

You can find out more about Jangle HERE.

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Why I Will Always Worry About Our Income

As an older parent, I am well aware that my retirement age will need to be extended if my kids choose to stay in education. I’m in good health right now so I can’t imagine wanting to stop earning. I’m sure both of us will do what’s necessary to keep the money coming in for as long as necessary.

Pic provided by Flickr.com

Having kids late meant that I was able to enjoy a good career and ensure I had the means to take on the commitment of parenting. But there will always be that worry that I’ve not done enough.

We always check we’re covered for every eventuality.We certainly have learned the value of insurance over the years. Obviously, nobody is keen on the cost of insurance, but without it, you could find yourself in dire financial straits.

The mortgage terms demanded that we both have life insurance cover, for example. It means the mortgage will be paid off if anything happened to either of us.

Making sure my kids are provided for is really important to me.

Yes, we are older than other parents, so yes we may have to deal with ill health while the kids are still young and dependent on us.

Fortunately, the Husband is in a relatively risk-free job and I work from home.

I feel for those parents who work in roles that are more dangerous, like the emergency services. I can understand why it is so important for police officers to have law enforcement life insurance that covers those extra risks when it’s needed. These insurances can also cover part of your salary if you are unable to work due to ill health. In high-stress jobs like the medical profession, this could be essential.

Image credit: Ken Teegardin

You never know what’s around the corner, whatever age you are, but there is so much more you can do to protect yourself financially.

Avoid extra financial commitments as much as you can.

Car loans, credit cards, and TV subscriptions are among the things we are tied to in life that can be a burden if you lost your income.

Careful budgeting so you can see where your essential spending goes is a good idea too.

If something does go wrong, you can strip out what isn’t necessary quickly and easily. It also highlights the minimum income needed to cover your bills.

That makes it handy for working out the kind of pension you want, and the salary you would need if you lost your job.

We also do our best to save. The savings can sit there and earn almost nothing in interest, but at least it’s there. It’s something to dip into if a big bill comes up, or you need a break from working. Even if you can’t save much, every little helps in a financial crisis.

We’re old enough to remember financial disasters and recessions.

We know there is no job for life, and we know our property value could decrease as well as increase.

There is no certainty.

I will always worry about our financial future, but I know I will take care of my kids no matter what.

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Tips To Make Sure You Don't Break The Bank This Christmas

Christmas is a popular time for people to spend way more money than they can actually afford. Christmas quite literally breaks the bank. If you’ve got kids, it’s tempting to buy them everything on their Christmas lists and more, but this can mean a struggle at the start of the new year. Here are some of my tips to make sure you don’t break the bank this Christmas:

Write a List and Stick to it 

Sit down and take the time to write a list. On this list, include who you intend on buying something for, what you’re thinking of buying them, and the amount you’re thinking of spending on them. Then you need to promise yourself you’ll stick to this list. Christmas shopping without a list can be very dangerous for your finances. The smallest amounts can add up. Remember, it isn’t about buying the most expensive gifts for people, but the most thoughtful. You can find lots of helpful gift lists online if you need some inspiration.

Set a Budget

When you have an idea of how much you want to spend on each person, set a budget. Make sure you can afford this budget. If you can’t, work out where you can cut back on certain people/gifts. The earlier you start putting money towards your budget in the year, the better you’ll feel when it’s time to go Christmas shopping. Yes, Christmas shopping in August can be depressing, but it all helps to avoid being broke during the new year.

credit 

Consider Credit Accounts

Obtaining a credit account is an option, although you’ll need to proceed with caution. Providing you pay everything back on time, you can actually help your credit score. However, if you don’t you can get yourself into financial difficulty. The key is not to spend or borrow too much, so know exactly what you can afford. This can help to spread out the cost of Christmas. Some catalogues offer credit accounts for Christmas and other times you might need help, so take a look and see what you think. 

Compare Prices

Before buying something, compare prices in different stores first to see if you can get it any cheaper. Every little helps, especially at this time of year.

Make Stuff Yourself

Why not get your creative head on and make some stuff yourself? This will save you a ton of money, and people will appreciate the thought and effort you’ve put into their gifts a lot more. You could make a food hamper, pamper hamper, cupcakes, a canvas, or anything else you can think of.

Give to Charity

Instead of buying cards for every Tom, Dick, and Harry, why not give to charity in their name? You could even do this instead of buying a gift if you don’t know what to buy. You’ll save money and do good for the world. How could they not appreciate it?

These tips will help you to keep your finances in check ready for the start of the new year. The earlier the plan, and the more effort you put into making rather than buying, the more money you’ll save!

Thanks for reading Mother Distracted.  I really appreciate your support and I'd love it if you could share this post across social media. If you’re new to Mother Distracted, why not join me on the Mother Distracted Facebook page, tweet me on @lindahobbis or follow me on Instagram. 

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Future Proofing Your Finances Is No Time To Be Shy & Retiring

So far I've had a life in two parts.

Probably the reverse of many women's in that I was a single working girl up to the age of 41 and then a married, stay at home, mother of two and blogger up to the age of, this year, 51.

Whilst single I had my own house, paid my own bills and was totally financially dependent. I worked as a marketing director for a local law firm which afforded me a comfortable, but certainly not a frivolous lifestyle.

My parents were both born in 1939 and brought up during rationing which has had a lasting effect on their attitude to money, and, consequently, on mine.

You worked hard to earn it.

You saved for a rainy day.

Theirs was the "waste not, want not" generation.

From a very early age, my sister and I had Post Office savings accounts (I can still picture the little blue savings books that Dad got for us).

There was something undeniably thrilling about seeing your pocket money grow.

In the economic boom of the late 1980's whilst my friends were spending on clothes, make-up, holidays, cars and general fripperies, I was squirreling cash away into bank accounts and carefully budgeting for each week.

I took out a personal pension when I was 24, determined not to end up in the depressing old people's homes where my grandparents had ended their days.

My husband is a successful telecoms consultant and his job enables me to work from home and take care of the children.

His attitude to money is very similar to mine.

We would rather save up for a household project than take out a loan, even if this means putting up with a certain degree of scruffy floorboards and less than pristine bathroom fittings.

Because I had saved and put everything I could into paying off my mortgage, we were able to buy a larger home together than either of us could have afforded separately, and with a much more manageable mortgage.

We now have the financial pressures that many much younger couples have, in that not only do we have to plan for our retirement but there is the issue of potential university fees and the general costs of raising children.

We are also in what I think of as the 'sandwich generation', meaning that both sets of our parents are in their 70's and there is a very real possibility that one or other of them may end up living with us.

We would both rather make sacrifices to care for our parents at home.

This has meant that we have had to completely restructure our finances to put contingency plans (and savings policies) in place.

We are both pretty risk averse so these policies have tended to be savings plans rather than stock market investments.

We have friends who have invested their savings in property in the hope that the UK property market will make them financially comfortable in their old age but, as we now know from the recent economic downturn, property may not necessarily be the golden egg we once thought it was.

In any case, those we know who currently have more than one property are certainly not cash rich and need to be even more thorough in their financial planning to account for building renovation, DIY disasters and absconding tenants!

Learning about money needs to start at an early age

Our children are now 7 and 6 and we are making sure that they understand the value of money and what it can, and cannot do.

We are teaching them that it is better to save up for a toy they would really like than to buy something cheaper which breaks in two seconds flat.

Delaying instant gratification is quite a challenge for young children!

More importantly, we are instilling in them an understanding of how money is earned - ideally by doing a job that you love and contributing to society in a useful way.

I cannot deny that I have moments of apprehension about my financial future.

With one in four marriages ending in divorce and being reliant on our family finances, I strongly believe that I should find a way to contribute to the money pot and protect my own financial value.

Blogging is my way of doing this and now that the kids are in school full time, I am able to take on writing projects and network more.

So what will I be telling my daughter, whose world is full of Disney princesses and fairytale endings?

Interesting, isn't it, that the phenomenal success of Disney's "Frozen" may be down to the storyline, not of romance but of sisters Elsa and Anna 'doing it for themselves'.

I will tell her that you are never too young to start saving and planning for your future.

I will tell her that, even if she becomes a wife or long-term partner, always to maintain a degree of financial independence and I will tell her that finding a job she loves is the way to financial success, but that, like money, success tends to be earned by hard work.

This article first appeared on www.retiresavvy.co.uk, the retirement website from Skipton Building Society in June 2015.

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