More than half of parents will set a household budget in 2014 – with money at the top of the worry list. Nearly four in ten parents say they are concerned about not having enough money put aside for unexpected expenses – according to the family finance index from M&S Bank.
Nearly one in five (19%) parents are planning to review their finances as part of their 2014 resolutions, compared with just 13% in 2013.
Less than half (46%) of parents had a budget for their household finances in 2013, but reassuringly of those that did, 81 per cent managed to stick to it throughout the year. Over the course of a year, almost two thirds (65%) of parents plan their monthly spending around the outgoings they have in a particular month.
When it comes to managing the household finances throughout 2014, over a third (36%) of parents plan to share the responsibility equally between them. However, it’s mums who generally keep a closer eye on day-to-day finances, with 30 per cent checking their statements daily, compared to 22 per cent of dads.
Encouragingly, 91% of parents know exactly how much they have in their current account. However, they’re not so sure when it comes to knowing specific details of their accounts; just 27% know whether there are any charges on their current account but they don’t know what these charges are.
A further 29% are unaware what the APR is on their credit card, highlighting that while credit cards can be a useful way to help manage the family finances, it’s important to ensure you’re using a card that meets your needs, whether that’s an extended period of interest-free credit each month, or loyalty points on spend for example.
Almost four in ten (37%) parents have less than £100 left in their account at the end of the month and 15 per cent tend to be in their overdraft. For those with money left at the end of the month, over a quarter (26%) plan to save this, with dads set to save more than mums (30% v 22%).