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Parenthood: tackling financial pressures faced by UK families

Parenthood is a rewarding journey, but it comes with surprising financial pressures that can strain family budgets. A recent study by Legal & General highlights how hidden expenses affect parents and offers insights into managing these challenges.

Unexpected financial pressures and challenges

Hidden costs catch many parents off guard. According to the survey, 44% of families use savings to cover surprise childcare expenses, while 39% turn to credit cards for help.

During school holidays, 47% of parents rely on family and friends for childcare. In the North East, this reliance is even higher, reaching 57%. Extracurricular activities add to the burden, with families spending an average of £186.08 per child monthly on lessons and sports.

School-related expenses, like uniforms and trips, also shock 47% of parents, showcasing how everyday costs can quickly pile up.

Christmas expenses

Christmas is a magical season, but it can stretch finances. Parents spend an average of £220.80 per child on gifts, with those in Newcastle and the North East spending over £318. Rising costs mean that 85% of parents feel Christmas is becoming more expensive.

While 74% of parents budget for gifts, 43% admit they often overspend. Despite this, families embrace creativity and thoughtful planning to make the holidays memorable.

Practical tips to ease financial pressures

Parents are finding ways to manage rising costs while creating joyful family moments.

Embrace free activities

Over half (51%) of parents highlight free family fun as a key strategy. Local libraries, council events, and youth clubs offer opportunities to make memories without spending a penny. Check your local council website for inspiration.

Choose second-hand treasures

Nearly 37% of parents turn to second-hand shopping for clothes, toys, and more. Charities like Oxfam and British Red Cross offer quality items at affordable prices.

Tap into support networks

One-third of families rely on friends and relatives for childcare. Strong community connections help parents save money and feel supported during challenging times.

Planning ahead for financial security

Planning is essential for managing parenthood costs. Starting a savings plan, budgeting carefully, and securing life insurance can offer peace of mind.

Paula Llewellyn, Managing Director at Legal & General Retail, advises:
“Raising children is joyful but can be financially demanding. Proactive planning, such as life insurance, ensures long-term stability for families.”

For more tips, tune into the A Little Bit Richer podcast to learn how to manage parenthood expenses effectively.

Parents News UK has an article about financial wellbeing