Family life costs a fortune. Larger families cost an even larger fortune. Surviving the financial implications of adding your first child to your family isn’t so bad. You can just, sort of, make it work, but what about subsequent children?…
A second child begins to stretch things, especially because the eldest is now probably walking and
talking and asking for things like toys and chocolate all the time. A third child is certainly cause for financial planning, and a fourth child can mean that money becomes something you used to have, but now it’s just a concept that flashes up on your banking app every now and then – I should know, I have four children!
That’s why I’ve been looking into ways of turning pennies into pounds…
Work Towards Zero
The first thing to do in any money saving scenario is lay out all of your debt problems and make a plan to get back to zero. Ending each month at zero rather than ending the month in even deeper debt than you began with is a freeing feeling you can strive towards and achieve. All too often people don’t realise when they need to act. Create separate piles of money to deal with different debts and make sure you’re
paying off what you can before matters become too difficult to handle alone – the Creditfix website offers plenty of advice and guidance.
Child’s Savings Account
A savings account is no use if you dip into it on a weekly basis. Starting a child’s savings account and not touching it is of paramount importance for the day that your little one is no longer quite so little and wants a car. Maybe they’ll want help towards paying for university. Maybe they’ll want help towards a first home. The point is that making a small deposit of only £20 per month means that you can save almost two and half grand over ten years. That’s enough to put a smile on the face of any young adult.
Sell it. Sell it all.
You’re going to need an iron will. But you need to sell everything your child no longer needs or wants. Sentimentality is the enemy. You’ve probably got untold fortunes hoarded away in cupboards under stairs and in attics and in wardrobes and garages. Bikes, electronic games, trampolines, video game consoles, unloved musical instruments, even furniture such as bunk beds and writing tables that can easily be got rid of. Use the proceeds to top up the savings account. Do this at least once a year, and you’ll benefit from a boost to your savings.
Do you have any tips to share to make more money?