How and why should you improve your financial position as a family?

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There’s no getting around the fact that family life is expensive. From covering the costs of groceries every week to paying for school uniforms, trips abroad, and all those unexpected bills too, it quickly adds up. So, when it comes to saving money, many families struggle.

As difficult as it might be, saving money is vital for any parents serious about setting their family up for success. Whether you’ve only just had a baby, or your teenagers are about to start sixth form, it’s always worth knowing why improving your finances is more important now than ever before.

Financial health: Why is it so important for families?

As a family, you need to take a proactive approach to financial management. Having money for the usual expenses is just as necessary as keeping some aside for unforeseen events and emergencies, especially through harder times. With local councils warning of impending financial crisis, it’s a critical time to become more financially self-sufficient.

Money management: How to set your family up for success

1. Know where you’re starting

Firstly, you need to investigate your finances to make sure that you can plan in a realistic way. Consider factors like your usual cost of living, the number of children you have, and your regular expenses should be considered alongside impromptu expenses like car repair bills, veterinary fees for your pets, and home maintenance demands too.

Once you’ve got an idea of where you stand now, you can start to define your priorities. Ultimately, this process will help you to spot opportunities to save money – and identify areas that need some improvement too.

• Set achievable goals

With your priorities realised, you can start to set specific financial goals and targets. Whether your family wants to buy a bigger house, a new car, or simply save for a rainy day, it’s always worth knowing your focus.

If it’s likely that you’ll need to take out a loan or secure a mortgage, it’s important to find intuitive ways to boost your credit score before your next big commitment. Building a strong credit score will help you to make more ambitious financial plans in the future and increases your chances of being accepted for credit cards and new bank accounts.

• Think of your wellbeing

It’s important to remember that financial stability supports improved mental health and wellbeing too. Effective money management will help you to reduce stress and ultimately lead to improvements in multiple different areas of your life.

Falling behind on bills and facing mounting debt is strongly linked to mental health problems, so keeping on top of your payments is essential. If you’re falling behind, don’t hesitate to speak to someone you trust or get in contact with your bank.

Don’t feel ashamed if you’re struggling to manage your family finances. Help is available from banks, specialist services, and advice bureaus like Citizens Advice. The sooner that you acknowledge an issue, the sooner you can work towards stability.