Parents worrying about feeling the pinch as budgets are squeezed

Britain’s parents are a nation of financial worriers, with more than 10.5 million (82 per cent) of those with children aged 18 or under concerned about their family outgoings over the next 12 months, according to research by Barclays. Yet nearly three quarters of these (71 per cent) could make the most of the business skills they already have to improve their household money management.
 
The Barclays Your Bank report comes as the bank launches a new commitment to listen further to customers and make changes based on their feedback on how Barclays can help them manage their finances more effectively.
 
Too many Brits who don’t feel in control of their households finances, continue to ignore or put off the practicalities of money management – nearly a fifth (18 per cent) admit they avoid it as it’s a task they simply don’t enjoy, 14 per cent put the blame on trying to avoid family arguments and a further 14 per cent claim it’s so complicated that they don’t even know where to start. But Barclays is urging the public to face their fears now, putting their wealth of business knowledge to the test to get their finances back in shape at home and share their ideas on how banks can help.

Catherine McGrath, Managing Director, Retail Bank, Barclays commented: “With the cost of raising a child having increased by 4 per cent in 2013, now costing at least £148,000 to raise a child to 18, this is putting an even greater strain on family finances so it is now more important than ever to tackle this head on and help your bank understand how they can assist. Parents have a range of transferable work skills, whether its IT expertise, budgeting tips, negotiation techniques or organisational skills that could really help them manage their family finances if used in the right way.”

Barclays has launched the Your Bank report in conjunction with Kingston University Small Business Research Unit to help bring to life how families can run their households like a successful business.

Professor Robert Blackburn, Kingston University Small Business Research Centre commented: “The ever increasing pressure on family finances – rising costs and widening breadth of expenditures – mean that a more systematic approach to managing our money may be necessary. Family financials can benefit from a more considered ‘business’ approach, with parents putting their work skills to the test, creating a happier and more enriching family home.”

Financial education from a young age is encouraged and the Your Bank research supports the need for parents to involve their children. Worryingly only 9 per cent of parents feel their children have a good knowledge of their household family finances meaning children could be growing up ill-prepared for future money management and lacking financial confidence.

It is well known that by organising your finances you could save thousands of pounds, and these top tips from Kingston for running your family home with a business brain can help achieve this:

All aboard – Find a time for the whole family to sit down and think about what’s important for the year ahead. This should involve a discussion of your family’s goals and ambitions to ensure a happy balance; plus flagging up any exceptional or recent unplanned bills.

Know your budget- Track your family’s main outgoings for the next month and how this matches with your income. Find out what free tools and services your bank has on offer to help you stay on top of your finances. This will help avoid you being in a responsive mode and reduce feelings of uncertainty, or not being in control of your finances. It will also highlight any discrepancies between your income and expenditure and stimulate discussions on where you can cut back as a family.

Get online – Search engines and price comparison sites allow you to examine the comparative prices of millions of individual items. Check whether your bank offers free online or mobile banking services so you can quickly access up to date information when you need it. Text alerts can help stay one step ahead of going into the red too.

Market research - collect prices and information on your forthcoming purchases, searching for the best price and offers. Share the tasks and responsibilities for this information gathering exercise so that you are working as a team and family members work to their strengths.

Get the best deal – Old habits die hard but they may be costing you dearly. Reducing your outgoings may require a change in your family behaviour and question your own purchasing routines and brand / shop /retailer loyalties. You may also have to brush up on your negotiation skills in preparation for asking about a price reduction in goods and services from a supplier.

To read the full Barclays Your Bank report, and to help Barclays see life from your perspective they’re asking you to visit barclays.co.uk/yourbank to share with us your ideas for making everyday banking better. Follow #YourBank on Twitter for the latest updates.