Almost every family, whether they are employed or not, are affected by their finances. It is important that parents are aware of how to best manage their money, budget and know their entitlements.

In pre-pandemic Northern Ireland, 49% of working adults said they were struggling financially and found it difficult to save and keep up with bills[1]. Almost half of families reported that over 20% of their overall income was spent on childcare and for single parent households this was 63%[2]. Furthermore, in 2018/19 NISRA found that 19% of people in Northern Ireland were in relative poverty and a further 16% were in absolute poverty, which had increased by 16% in 2017/18[3].

The pandemic has been a major burden on many families finances, within Northern Ireland NISRA found that in September 2020, 201,500 employers used flexible furlough and more than 33,000 emergency food parcels were provided between April and September 2020 in which 14% of people that received these parcels were in part-time employments[4].

In the UK, the Office for National Statistics (ONS) found that the cost of living was 4.2% higher in October 2021 compared to the previous year, showing the rising cost of living experienced by those living in the UK. Inflation in 2021 has seen a 10% increase in transport, 4.5% in education, 3.8% in utility bills and 1.3% in food and health compared to 2020.

These statistics show the stark financial struggles faced by families in the UK and within Northern Ireland now more than ever before.  

Managing Family Finances

1. Benefit entitlement: Many parents, both employed or unemployed, single or dual parental households may be entitled to receiving financial support, it is important that you are made aware of the benefits available. The NI Direct (Government services) provides information on benefits in NI. Everyone who has a child is entitled to claim Child Benefit in the UK. There is also support available for additional needs which can be found on their webpage.

Website link: https://www.nidirect.gov.uk/articles/how-claim-benefit

There is a section for childcare benefits and other help for working parents you may find useful, it provides information on:

• Child Tax Credit
• Childcare
• Child care choices
• Flexible working
• Parental leave
• Tax-free childcare
• Working Tax Credit

Link for more information: https://www.nidirect.gov.uk/information-and-services/childcare/childcare-benefits-and-other-help-working-parents

If you are unsure if you are eligible for benefits or wish to receive more information on how to claim benefits you can contact:

Jobs and Benefits Offices

Tax Credits Helpline and Tax Credit Office

Making a financial plan

A financial plan can help families manage expenses such as bills and it will allow you to feel in control of your finances. It will allow you to outline the most essential things you need to spend your money on such as, utility bills, food and rent and set aside money for other things, such as a financial emergency or things you want but are non-essential.

How to create a financial plan:

• https://raisingchildren.net.au/grown-ups/family-life/managing-money/managing-money
• https://www.onefamily.com/talking-finance/finance/how-to-make-a-financial-plan-for-your-family/

• The importance of saving: in order to effectively manage your finances it may be important to set aside some savings in the event of a financial emergency. This will help reduce financial stress and avoid debt. It is important to save as long as you are spending less than you earn (you do not want to put yourself under financial stress if you cannot afford to set aside savings).

Ways to save your money:

• Set up a credit union account: https://www.thebalance.com/how-to-open-a-credit-union-account-315400
• Set up a savings account: Each bank will have their own advice for this, an example of the HSBC savings account https://www.hsbc.co.uk/savings/
• Speak to your bank or a financial advisor for more advice.

• Getting help if you are struggling with your finances: There are many options you can take if you are financially struggling. It is important to talk to someone about your financial stress and to seek help.
• Speak with someone you trust, ask them for advice. Do not suffer in silence, there is always someone willing to listen.
• Contact Citizen advice or visit their webpage: https://www.citizensadvice.org.uk/debt-and-money/budgeting/budgeting/get-help-with-bills/
• Check if you are eligible for a grant: https://www.moneysavingexpert.com/family/grants-low-income/
• Phone Parenting NI support line: 08088010722 where you can talk through the impact managing finances is having on you emotionally, as a parent

The benefits of managing your family finances

By managing your family finances it will improve your families overall wellbeing. Having an organised budget with give you peace of mind that your expenses are covered for that particular period. You will feel in control and less stressed about your finances. Furthermore, it will allow you to stop overspending as you will understand the importance of your money and having money aside in the event of a financial emergency will be a weight of your shoulders.  Overall, by reducing the stress caused by finance you will feel much happier which will reflect on your family’s emotional well-being.

[1] Maps, 2018 https://moneyandpensionsservice.org.uk/financial-wellbeing-in-northern-ireland/?cn-reloaded=1

[2] Northern Ireland Childcare Survey, 2019 https://moneyandpensionsservice.org.uk/financial-wellbeing-in-northern-ireland/?cn-reloaded=1

[3] NISRA, 2020 https://moneyandpensionsservice.org.uk/financial-wellbeing-in-northern-ireland/?cn-reloaded=1

[4] https://moneyandpensionsservice.org.uk/financial-wellbeing-in-northern-ireland/?cn-reloaded=1