Budgeting tips

Don’t try to guess how much money you have coming in and going out. Instead, pull together all the information you need to work it out. This may take a bit of time, but it’ll be worth it in the end. If all the money goes in and out of the same bank account this will be a lot easier to work out, but if you have more than one account, a credit card or you pay for things in cash, this could take a bit longer. So take the time to dig out any:

• bank statements
• payslips
• credit card statements or bills
• receipts for things you usually pay for in cash.

The first step is to work out how much money you have coming in. This could be from: 

• your job
• maternity or paternity pay
• child maintenance
• benefits and tax credits
• student loans or grants
• pensions or savings
• any other regular income, for example, if you let out a room in your home.

Next, you’ll need to work out how much you spend. It’s a good idea to look back over the whole year, rather than seeing how much you spend in one month, as you may pay for some things on a quarterly or annual basis. Also this way you can factor in things like birthdays and Christmas.
Things to think about include:
Household costs, for example:

• Rent or mortgage
• Council tax
• Gas and electricity
• Any other charges for your home (for example for stair cleaning or maintenance)
• Mobile and broadband

Living costs, for example:

• Childcare
• Travel and car costs
• Food and other shopping expenses (like cleaning products, toilet roll, etc)
• Clothes and shoes
• Toiletries (shampoo, deodorant, nappies, etc)
• School costs (like uniform, after school clubs, school bag, etc)

Other payments, for example:

• Insurance (home and contents, car, pets, etc)
• Pension
• Savings
• Loan repayments
• TV licence and streaming subscriptions

Other expenses, for example:

• Toys
• Presents
• Clubs
• Days out
• Holidays
• Charity donations.

You can set up a budget using a spreadsheet or just write it all down on paper. You’ll be able to see easily how much is coming in every month and how much is being spent. If there’s more going out than coming in, you’ll be able to start looking at where you might be able to save some money.

There are also some great free budgeting apps available and your bank or building society might have an online budgeting tool that takes information directly from your transactions.

This budget planning tool from the Money Helper website lets you save your information so you can put your budget together gradually and come back to it whenever you want if you create an account.

You may feel that the responsibility for balancing the budget is all on your shoulders. But it doesn’t have to be. Children often understand more than we think, and it may help to chat things through as a family and see where you can all save a bit more money. Work out how much you have to spend and agree what you think are the most important things. This is a great way to teach your kids the value of money, and that it definitely doesn’t grow on trees. It will also help them feel that they have some choice and are doing something to help.

You can find helpful advice on talking to your children about money on the YoungMinds website.

Rather than using your debit card every time you buy something, next time you go to the supermarket you could try taking out cash instead. This can help you keep track of how much you’re spending. It also makes it easier to see how much you have left and when you’re running out, so you don’t go over your limit. It also feels a bit more ‘real’ than using cards all the time and is more likely to make you stop before buying something, and think about whether it’s something you really need or can afford.

You can also talk to your bank and find out how they can help with any payments you’re struggling with, or other ways they can help to make your money easier to manage. Your bank’s website should have information about how to contact them and the different services they offer. You may be able to chat to them online or on the phone, or come into your nearest branch.