Family budget UK
Family budget UK focuses on great ways to distribute, save and make your money go further. The average UK family spends £91 a week on food and drinks, an increase of almost 3% from the previous year. There are many ways to cut down on your food budget without sacrificing quality or a healthy diet.
As you happily know, food is an important part of life, but the household budget often doesn’t reflect this. A simple spaghetti bolognese meal can cost only a few pounds. However, a family dinner out in London can cost more than £100!
Food is one of the most important categories when it comes to saving money on the family budget.
Transport costs are also a large part of the family budget, accounting for up to 14% of the average household’s spending. This means that low-income families spend much more on fuel, housing, and food than those in higher-income areas. Since the 1980s, motoring costs have doubled. With all of this, it is no wonder that transport costs are rising.
While creating a budget may seem like a difficult task, there are a few simple steps that can make the process a lot easier.
First of all, you need to compare your monthly income to your monthly expenses, and then create a detailed plan for spending and saving. You can even use a budgeting app to track your spending and spot any changes quickly.
Housing costs make up about 35 to 45% of the average UK household budget. The largest component of housing costs is rent, followed by mortgage interest and utilities. Other costs include insurance, phone, internet, and TV.
In 2020, communications costs surpassed gas & electric bills. Thankfully, the government’s support in supplementing energy costs has helped keep those down.
There are many ways to manage your family budget. This article will provide you with the average monthly food budget in the UK, the average weekly expenditure on utilities, goods and services, and the average monthly costs of childcare and transport.
This information will help you in creating a budget for your household and keeping your finances under control. Whether you’re a single parent, a couple, or a family of four, there’s a budget that will suit you and your family’s needs.
Family Budget UK – food
Food is an important part of the budget of any household and an average family in the UK now spends about £566 a month on food. This includes £266 in groceries and £190 for eating out.
The breakdown of the average food budget shows that lower-income households spend more money on milk and processed meats, while the highest-income households spend more on fresh vegetables. The percentage of spending on food varies widely, but the lowest income groups spend the most – 21% and more of their total household budget – on food.
The percentage of disposable income that a household spends on food tends to increase over time.
Family Budget UK – utilities, goods and services
The average weekly cost of utilities, goods and services such as energy, broadband, cars, appliances, house cleaning and maintenance, consulting services and clothing by UK households reflects how much a typical family spends on the different types of goods and services.
The less affluent quintile spent only £329 a week on goods and services – just under 40% of what the richest quintile spends. However, the gap between the rich and poor narrows when we take into account the cost of food, heating, and transport. In the last three decades, the average weekly expenditure per household has almost doubled, from £153 to £301.
The average weekly expenditure on goods and services by UK households varies considerably – it depends on the number of people living in the household, their age, socio-economic background and region.
Family Budget UK – childcare
The UK has the second highest childcare costs in the world, costing almost two-thirds of a typical family’s monthly income, according to the Organisation for Economic Co-operation and Development (OECD).
In England, parents are entitled to free childcare from the age of 3, but many critics say childcare should be extended to 52 weeks, and prices should be lowered to encourage working parents to seek it.
To find out more about childcare options in your area, you can contact your local council. Most councils have a Family Information Service department that will be able to point you in the right direction.
Once you’ve found an ideal childcare service, be sure to check local reviews and arrange a face-to-face meeting. You should also look into their latest Ofsted inspection report to see what standards are being met and where there are areas for concern.
Budgeting for a Family of 4 in the UK: Video
Another option to keep childcare costs down is finding a nanny or au pair to work for you. This option is more affordable, but you may need to pay for out-of-pocket expenses such as electricity or gas.
Should you choose the nanny/ au pair route, to save on your energy bills, simply contact us and let’s get you the best energy-saving rates. Plus savings on your other utilities such as your broadband, mobile and home cover/ insurance.
Alternatively, you can ask a family member for help. Grandparents are often willing to help out with childcare, but this option will only be viable if they live nearby and you have a good relationship with them.
Family Budget UK – transport
There are many ways to cut the costs of your transport, but the cost of public transport in the UK can be high. It can take a longer time to reach your destination, and it is easy to get stuck in traffic. The good news is that you can use a contactless card or oyster card to save money on commuting. You can also use Uber to save money on long-distance travel.
The cost of living in the UK also varies from city to city. For example, living in London costs more than living in the country’s other major cities. However, there are benefits to living in a big city, including having access to high-paying, part-time jobs. On the other hand, there are some regional cities that are much cheaper to live in than others.
While the cost of housing in the UK is generally higher than in most European countries, it does vary from one region to another. For example, the price of a one-bedroom apartment in London can be as high as £1,272 per month!
In planning your family budget, it is essential to manage your money effectively. This means not overspending and determining your disposable income before you start your spending plan.
A household budget helps you know how much you can afford to spend each month and leaves enough money to pay for the essentials – such as food and utilities. Keeping an eye on your budget is essential to staying debt-free.
To help your money stretch further, you should get the Utility Warehouse Cashback Card. You get up to 10% cash back on everything you buy/ pay for. Let your shopping pay for your utility bill! Contact us to get started.
Also, you want to discuss your budget and financial constraints with your family. This will ensure everyone is on the same page and brings your family into the picture. If everyone understands the financial limitations, then the budgeting process will be much easier.
And when everyone is working together and communicating openly, healthy spending will be easier to maintain. Getting everyone involved in the process can help you to stay on track and save more money.
In Conclusion
Budgeting for a family can be tricky, especially if you don’t have a fixed income and are trying to save for your future. However, with careful planning, you can make your budget work for you and your family and still have savings for the future.
Start by working out your incoming and outgoing expenses. See where you’re over or under budget, and look for areas to cut back on. If possible, set monthly savings targets.
Finally, your utility bills are essential and have a major impact on your family budget. Let us help you keep more of your money.
