How is your new year going? January and February can be hard going months. The weather can be cold and the evenings are still dark (but getting longer day by day!) The buzz and excitement of Christmas has passed but the bills may not have!

However, don’t despair – see this as an opportunity to teach your children about how to manage stress, down times and money.

We talk about modelling at Sharing Parenting; this is showing them the behaviour you want to see. It’s good to put yourself in their shoes sometimes to be able to do this effectively.

Top tips for modelling good money habits

1. Budget

Work out your income and outgoings. There is a free budget planner on the Money Helper Website.

You can help your children to budget from a young age by giving them a small amount of pocket money each week or month. Only give what you can afford and explain that you have a budget too. This will help them to decide what things are important to them. You can start with 50p or £1.00 from as young as three years old.

One of the Sharing Parenting Team shared:

“I remember doing this when my children were younger. Every time we went to a shop they said “Can I have this or that”. One day I gave them both a small amount and said “This is for you to choose. You can have the same amount next week (but nothing in between).”

I was instantly amazed that they chose not to spend it on the things they had been asking me for and decided to ‘save’ it for something else.

This actually saved me money (and the stress of having to always say no, or work out if I could afford it!) and was their first budgeting lesson.”

2. Reduce Costs

It can be useful to write down your outgoings and see if you can reduce costs anywhere. Money Saving Expert has lots of information about this here: www.moneysavingexpert.com/banking/budget-planning/

Often providers, such as electricity, gas, mobile phone, TV subscriptions etc. will reduce costs or find you a cheaper deal if you contact them.

Supermarket savings include trying a brand cheaper (own brand or budget brand) and shopping at different supermarkets to see which one is cheaper for you and your family.

Remember the smaller branded shops items tend to be more expensive than the larger ones (even for the same product). It may be cheaper to do one big shop each week, rather than popping into small ones lots of times.  

Avoid going shopping when you are hungry as you will be tempted to buy more.

Buy less and second hand (pre loved) from boot sales, charity shops, ebay, Facebook marketplace, Freebay and Ely Baby Bank (in Fordham).  

Before you buy anything, ask yourself:

1. Do I need it?
2. Can I get it for free or second hand?
3. Can I get it somewhere cheaper?

Take time to plan your meals for the week in advance. You can plan budget friendly meals (such as baked potatoes and beans, pasta bake etc.) and avoid food wastage. 

3. Save

Saving something each week or month can be a good life habit. Saving for a particular thing, annual bills (such as car insurance or MOT or holidays) or just putting something away for emergencies can help for peace of mind.

Try to encourage your children to save a % of their pocket money to start a good habit early.  

4. Ask for help

Being in debt and feeling out of control can feel very scary and stressful. It. Is important to talk to someone you can trust, about this, as the problem will get bigger if you ignore it. The government have a list of FREE trusted organisations who can help: www.gov.uk/debt-advice:

National Debt Helpline

Citizens Advice

Payplan

Community Money Advice

Step Change Debt Charity

Moneyplus Advice

Money Wellness

Debt Advice Foundation

Taking control of money and debt can help to reduce stress in the household and in turn support your children.

It is natural for life to have ups and downs and sharing this (age appropriately) with your children will model to them, how to deal with stressful times for them in their future.