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Money Saving

How to Keep the Cost of Children Lower

Having children can be an expensive business. From the moment they are born (or perhaps even before if you pay for fertility treatment, maternity clothing etc) you will be paying out extra money. Of course, all parents think that their children are worth the money but it is possible to spend less, if you feel that you need to. Below are some tips on how you can keep the costs of having children a bit lower.

Do not buy everything

It can be tempting to buy everything that you possibly can for your children. It is lovely to spoil them and to show your love by buying them lots of things. However, we do need to be careful that we are not spending far too much money than we can afford. Babies and young children have no way of noticing whether they are wearing designer clothing or second hand, as long as they are dry and comfortable they will feel fine. The same goes for their pram, pushchair, car seat, bed and everything else that you buy for them. Obviously it is important to get good value for money as you want to make sure that you do not buy things that are so cheap that you have to keep replacing them. However, there really is no need to buy lots of things and really expensive ones.

Buy second hand

You can buy many things second hand and these can be a lot cheaper. It is therefore well worth considering doing this. There are a few things that you have to be really careful of such as mattresses and car seats. There have been some theories that damp and mould or cigarette smoke in mattresses can possibly be a factor in cot death and so it is wise to buy new ones just in case. There is also a risk with a second hand car seat, that it might be damaged if it has been involved in a car accident and so you may also want to be careful of this and buy new ones. Everything else, though should be find as long as you look over it carefully and give it a good clean before you use it.

Do not get all of the latest things

It can be tempting to buy everything that is in fashion. As your child gets older and goes to school they will see other children with things and they will want to have them as well. This means that you could end up buying all sorts of things. You could end up with a house full of bits and pieces and they may never even use many of them or only enjoy them for a small amount of time. Therefore it is wise to try to be string and avoid buying them everything that they ask for. If you wait for birthdays and Christmas they will appreciate them far more anyway and it will be much more exciting for them if they get things that they have waited a long time for.

Do not buy more than necessary

It can also be tempting to buy more things than they need. Clothing is a good example, when you only need outfits for a few days, as long as you wash regularly. When they are growing really fast, it is waste of time buying lots of different clothes as they may only wear them a few times before they grow out of them. If you get clothing which works for different occasions, so smart casual wear that is good for playing in but can be smartened up for more formal occasions you should be ready for anything without having to pay out lots of money. The same goes for shoes as it can be tempting to buy shoes for school, home, playing in mud and rain, inside, different colours to match different outfits etc. However, children really only need school shoes, wellingtons (while they are young or if they need them for school) PE shoes for school and possibly slippers. You can apply to books and toys and make good use of libraries for these, you may have a local toy library as well as conventional one where you can borrow all sorts of toys.

Do not give too much pocket money

It can be nice to give the children pocket money but giving too much can leave you short of money. Make sure that if you do give them money, that it is a reasonable amount. Also encourage them to save it or spend it wisely. This will mean that they will have some savings for when they are older and need to buy more important things. Encouraging them to spend their money on sweets or toys will make them feel that they always have to spend money they are given, whereas understanding the importance of saving money is really useful. As adults, we do not always have the money to buy everything that we need, but if we have savings to fall back on it will stop us having to borrow. Although not all borrowing is avoidable and not all borrowing is bad, it is still good to understand about the importance of saving money.

Financial Advice

It is Necessary to use a Financial Adviser?

There are many people that use a financial advisor for various things. They can be rather expensive though and so it may seem that they are just not worth the money. There are some cases though. When they could really make a big difference and so it could be worth using them. Below there are different types of financial products and the reasons why you might want to consider using an advisor.

Insurance

Getting a good insurance deal can make a big difference financially. Insurance can cost a lot of money, particularly if we have a lot of different insurance policies. Saving money on each one can add up and make a significant difference. You could ask a financial advisor to look into this for you and to see whether you could switch to save money. However, it is possible to use a broker to do this. They will not charge you anything and thy will only look at selected insurers but the amount of money that you could potentially save is unlikely to be enough to cover the cost of a financial advisor. You can also search yourself online and compare different insurers. You will probably find that you can save quite a bit of money by yourself if you do this so it is probably not worth using a financial advisor for this.

Investments

If you are looking to invest money, perhaps a lump sum or a regular payment, then you will need to find the right investment fund for you. There are many different options and it can be time consuming to find out about all of the different types and which might be the best for you. It can be well worth asking an independent financial advisor to help you with making this decision. They will be able to let you know which of the types of investments will suit your needs the best and show you which have the best rates. Investments also have risks and so if you can pick the one that has the lowest risk, then this can help you a lot as well. You financial advisor will be able to explain risks to you and show you what products are low and high risk so that you make a decision about what to invest in that suits you.

Pensions

A pension is a really important product to have as it will finance your retirement. It will enable you to have an income which will allow you to have a good lifestyle, be able to have more freedom with regards to where you live, what you buy and what activities you can take part in. You may have a government pension and maybe a work pension, but if you want a personal pension as well then you will need to compare all of the different types in order to decide which will be the best for you. It may be that you would like to use the services of a financial advisor in order to help you to choose which pension will be the best.

Mortgages

Choosing a mortgage can be a big decision as you might be tied in to a deal which could last quite a while and you will be paying out a lot of money in interest over the term of the mortgage. If you know a lot about mortgages, then you may be able to decide which type of mortgage will be the best type for you and be able to compare the different lenders to work outw hic looks to be the best. However, if you are a first time buyer, then it might benefit you to use a financial advisor who will explain to you about what options you have and find you a competitive mortgage that suits your needs.

Loans

Often we will just take out a loan with our own bank, but this can be a costly way to borrow. If you compare different loans, you will find that there is quite a big difference between the types of loans and how much they cost. It can be useful to have a financial advisor to tell you what the differences are and which will be the best for you. However, the cost of a financial advisor may be more than the money you will save by using a loan that they recommend. This will depend on how much you are borrowing and for how long. You may be able to do the research and cost comparison yourself. You may find that your bank will have a financial advisor, who will not be independent, but will be able to explain to you about the different types of borrowing offered by the bank. This could be enough to help you to understand the difference between the types so that you can decide which to get. Once you have decided this you should be able to use the Internet to compare prices to find the cheapest one for you.