Birthdays on the breadline no piece of cake for parents
Almost half (44%) of British parents cannot afford to give their child a birthday party according to new report from Family Action.
Birthdays on the Breadline, a new report by family support service leaders Family Action, unwraps the story of how parents are busting their budgets for their children's birthday parties, and the sacrifices they are making to do so. The report is published in partnership with Money for Life, Lloyds Banking Group's personal money management programme, which has joined forces with the charity to support vulnerable families through everyday financial challenges by improving their money skills.
Combining findings from national polling and focus groups, the report reveals how many families are driven to spend on birthday parties because of increasing pressure to impress other parents, friends and family, as well as to compensate for their own memories of poverty in childhood.
National polling by YouGov reveals that almost half (44%) of British parents surveyed said that they cannot afford to give their children a birthday party, increasing to 51% among lower income families. Yet despite the financial pressures placed on many households to make ends meet, the report found that over a quarter (27%) of parents believe it is their duty to organise a party for their child, even if they cannot afford it.
Family Action also carried out focus groups across its services in England to find out how the low income and disadvantaged families it works with are coping with budgets for birthday celebrations. Almost three quarters (74%) of these families have less than £100 a week to live on after housing costs, council taxes and utilities are paid.
40% spend at least £100 on the party and a similar number (43%) who have less than £100 a week to live on said they spend more than this on the party. These low income parents also highlighted the trend of taking cakes and party bags into school for children's classmates as a factor piling on even more pressure on already stretched budgets. Meanwhile, focus groups also revealed a concern from parents to protect their children from potential playground bullying by providing a birthday celebration they cannot necessarily afford.
Additionally the national polling found:
A fifth (21%) of parents would cut back on household expenses to afford their child's birthday;
Over a quarter (27%) would go without new clothes for themselves or their children;
46% are saving at least a month in advance to pay for birthday parties;
More than a third (34%) are spending anywhere between £80 and £500 on an individual child's party.
57% of parents would have a party at home instead of at an external venue to cut down on costs
For half of parents (49%), the best part of organising their child's birthday party is the sense of achievement they get from it and seeing their child happy.
Focus groups of Family Action service users also revealed:
Almost three quarters (74%) have less than £100 a week to live on after housing costs, council taxes and utilities are paid;
"Playground peer pressure" causes parents to spend large amounts on parties for their children and their school friends;
The trend for taking cakes and party bags into school for classmates is piling more pressure on these parents' already low incomes.
Chief Executive of Family Action, David Holmes, said: "Paying for children's birthday parties is clearly a source of financial stress for many families, even before the costs of birthday presents are taken into account. This financial stress is magnified for low income families who may find they are spending the equivalent of a week's living costs for the whole family on a party for a single child.
"If you then add in the additional financial pressures that low income families in particular are facing from low wage rises and the squeeze on welfare, paying for children's parties is no cause for celebration.
"That is why family services and money management programmes such as Money for Life are so vital in helping to make parents more resilient to social and financial pressures by building their self-esteem and money skills."
Sarah Porretta, Head of Lloyds Banking Group's Money for Life programme said: "As this report shows, money management is an increasingly vital life skill with families today facing all sorts of unexpected financial pressures. Money for Life's partnership with Family Action is designed to support more families to develop the knowledge and confidence to manage their money well. Our employees are volunteering their expertise in face-to-face workshops in communities around the country, helping families with the issues that affect their daily lives, such as how to run a birthday party on a budget."
In response to the report, Family Action and Money for Life have compiled some top tips on how to organise a birthday party on a budget:
1. Why not consider having a party at home this year instead of at an external venue? Setting up a birthday party at home for your children and their friends is cost effective and with a little time and planning you can give your child some very happy memories at home.
2. Set a budget for your party and try and stick to it. It may be cheaper to pick an external party venue with an all-inclusive cost per child, or it may work out cheaper to do it yourself at home. Do the sums and make sure. Use this opportunity to teach your children about budgeting - help them decide between a more expensive party with fewer friends, or a cheaper party with more friends.
3. If your child's birthday is in the summer, why not plan a picnic or a treasure hunt in the park? All you'll need is some blankets, picnic food and games for the kids - which you can even ask friends to bring along with them. You can also design your own games, bring along a pen and paper and a few small prizes such as sweets to keep the kids happy. This not only will save on pennies but it'll also save you from a messy home at the end of it!
4. Start saving up in advance. Put loose change in a bottle each week to collect for your child's birthday - you'll be surprised at how much you can save!
5. Providing party bags is often expected for kids' birthdays but they can be expensive to put together and tend to include useless items that get thrown away within a few days. Try to minimise the amount you spend on these items by buying in bulk at the supermarket or pound shop or see if your venue will include a party bag in the cost. You could also try a ‘lucky dip' as an alternative for the children to pick one small gift each as they leave the party.
6. If relatives offer to buy a gift for your child's birthday ask them to pay for fees like swimming lessons, karate or any other groups the child attends. This will save you money when the bill comes through.
7. A trip to the cinema with some friends makes a great birthday treat but the cost can quickly spiral out of control. However, many cinemas now show kids' films at the weekend at a fraction of the cost. Check out your local cinema to see what's on offer. And, if your local cinema allows it, remember to take your own snacks with you to further reduce the cost.
8. If sending out invitations why not send out an e-invite to parents and their kids instead. It's cheaper than buying cards and you'll also save time, and money on postage.
9. Make the birthday cake instead of buying one. Whilst shop bought cakes look great they are also expensive- some shop bought cakes can cost more than £20. There are tons of simple, delicious recipes online that you can make for under a fiver. Pinterest is a good source of inspiration for cake designs and creative party foods. Or try googling "fruit animals" for a healthy alternative to cake.
10. Think about timings of the party. If you get this right you can save a lot of money. Organise a party in between lunch and dinner as this will save you on food costs. Or when inviting people clearly state that it's snacks that will be provided and not lunch or dinner.
11. Make up the games instead of having a child's entertainer. Good old-fashioned party games are just as fun for little ones. Musical chairs and musical statues are fun for kids and many children's games don't need prizes, you could just buy a cheap packet of gold stars to stick on the winners to make them feel special! Have a look at partydelights.co.uk for fun sticker collections and other ideas.
12. If your child receives gifts that they already have or that you know they won't use, why not sell them on eBay? This can be a great way of earning some extra money and putting it in savings, or towards something that they do want or need. Another option is to recycle them by giving them to a different friend in a different social group.