How to Save Money as a Parent in the UK

How to Save Money as a Parent in the UK
Raising children in the UK is a rewarding journey, but it can also bring significant financial challenges. With the cost of living rising and household budgets under pressure, many parents are looking for ways to better manage their money while still providing the best for their families.
According to recent figures, UK households with children spend, on average, over £10,000 annually on childcare and related expenses. That doesn’t include the added pressures of school costs, family activities, or future savings goals. This is where budgeting becomes essential.
Zomi is here to support families in navigating this journey with practical tools, worksheets, and educational resources tailored to help manage finances without stress.
This article is intended for general informational purposes only. It does not constitute financial advice.

Why Saving When You Have Children Matters

Raising a child in the UK is a long-term financial commitment. From nappies and nursery fees to school uniforms and weekend activities, expenses can add up quickly. While some costs are predictable (like rent or mortgage), others can be unpredictable, such as unexpected school trips or healthcare needs.
Being financially prepared allows families to respond to both types of costs with confidence. It also builds resilience during uncertain times, such as maternity/paternity leave, career breaks, or economic changes.
Budgeting advice that focuses on the entire household can help create a financial buffer and reduce stress.

Childcare Costs and Monthly Expenses

Childcare is often the largest monthly expense for UK families. According to Coram Family and Childcare, the average cost of part-time nursery care is over £6,000 per year per child, while full-time care can exceed £12,000.
Households also need to factor in groceries, utilities, transport, and leisure—expenses that can fluctuate based on lifestyle and location.

Planning for Future Family Expenses

Children grow quickly, and so do their needs. Planning for holidays, school fees, extracurricular activities, or even university can make a big difference.
Making a will ensures your family’s future is protected, especially if you’re considering guardianship plans or financial distributions. The cost to make a will in the UK varies, but typically ranges from £100 to £300 with a solicitor.

Best Ways to Budget and Save Money as a Family

There are several budgeting systems UK families use to take control of their finances. Each offers a different structure:
Table indicating Proven Budgeting Practices Among Families

Day-to-Day Budget Examples

A sample monthly breakdown might look like this:

• Fixed Costs: Rent/mortgage, utilities, insurance
• Flexible Costs: Groceries, fuel, activities
• Savings Goals: Emergency fund, child trust fund

Proven Budgeting Practices Among Families

• Reduce Grocery Bills: Use meal plans, buy in bulk, avoid shopping when hungry
• Buy Second-hand: From prams to clothing, online marketplaces can help save money
• Teach Kids About Money: Involving children in small saving activities instils long-term habits

Top Budgeting & Saving Apps in the UK

There are numerous apps designed to help UK families monitor and improve their spending habits.

Apps That Help You Save Money

Some apps round up purchases and deposit the difference into savings, while others let you set visual goals and track progress. This automation can help save money without even thinking about it.

Budgeting Tools and Financial Advice Features

Many apps include dashboards that analyse spending trends, tips for reducing waste, and real-time notifications when spending exceeds a limit.

How Much Savings Should You Have Before or After Having a Child?

There’s no universal answer but building a cushion before children arrive can offer peace of mind. Some experts suggest aiming for at least 3–6 months of living expenses.

Saving Before Having a Child

• Consider costs for maternity/paternity leave
• Save for baby essentials: pram, cot, clothes, feeding supplies 
• Plan for loss of income during early months 

Saving Once You Have a Child

• Adjust your budget monthly
• Factor in changing needs: formula, nappies, healthcare
• Rebuild your emergency fund as needed

Managing Family Finances – The Role of Zomi

Zomi offers education-led resources for families looking to build healthier financial habits. Rather than relying on tech alone, Zomi focuses on empowering users with understanding.

Understanding the Family’s Financial Picture

Income, benefits, and household expenses should be assessed monthly. Use tools like budgeting worksheets and visual breakdowns.

Building Financial Habits for the Long Term

• Review your finances monthly 
• Set goals with your partner and children
• Speak to Zomi advisers for wealth management in UK

FAQs – Quick Answers

How much does it cost to raise a child in the UK?
It depends on location and lifestyle. Some estimates put the cost at over £150,000 from birth to 18.

What’s the best budgeting system for families?
Many prefer the 50/30/20 rule for its balance, but zero-based budgeting offers more control.

How do I make a will in the UK?
You can use online templates or work with a solicitor. Costs range from £100 to £300, depending on complexity.

How can we involve children in budgeting?
Use pocket money to teach saving/spending balance or create a family savings goal chart.

Are budgeting apps safe to use?
Most major apps use bank-level encryption. Always check FCA authorisation before connecting your accounts.

Speak to a Zomi Adviser Today

Looking to take control of your family’s finances? Our expert advisers are here to help you understand your options, manage your money, and build financial confidence.

Start today! Talk to an adviser at Zomi Wealth and take the first step towards better family finances.

Sources:

https://cpag.org.uk/news/cost-child-2024
https://www.lboro.ac.uk/news-events/news/2024/december/families-fall-short-of-acceptable-living-standards/
https://cpag.org.uk/policy-and-research/findings-our-projects/cost-child-reports
https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/making-a-will
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