From the soaring price of your weekly shop to the upcoming expense of Christmas, money is a worry for many families. But you don’t have to face it alone.
We asked the experts at MoneyHelper – one of our Netmums trusted partners – for their top tips for families struggling with money. Here, Paul Fox from the money advice service shares his advice on what to do now to help boost your finances in 2025. He says:
Tip #1 – Work out where you are now
If you haven’t done so already, the first step to understanding your finances is making a budget. This will help you to better understand:
- Exactly what money is coming into your household
- Exactly what money is going out of your household
- Any debts and bills you have
- Where you could free up cash or maximise your income.
You don’t need fancy planners, spreadsheets or apps to keep a budget. You can use an exercise book, or the jam jar approach (splitting money into separate ‘pots’) to keep your money separate to cover your bills and payments. There are bank accounts that let you do this and will keep your money safe.
If you have access to the internet and a computer or smartphone you can use MoneyHelper’s free and easy-to-use Budget Planner.
Tip #2 – Claim all the benefits and help you are entitled to
If you’re struggling with money, it’s important to make sure you get all the Government help you may be entitled to. Visit Help for Households which gives information on:
- Benefits to support the cost of living
- Support for childcare costs
- Transport costs
- Household costs
- Help finding work
- Discounts and offers
The easiest way to check if you’re entitled to other benefits, including Universal Credit, is to use a benefits calculator. MoneyHelper’s free calculator takes five minutes to complete and is completely confidential. It will help you:
- See if you could claim extra regular payments, like Universal Credit and Child Benefit.
- See if you qualify for other help and grants, like free school meals and money towards your heating bills.
- Check what support you can get if your circumstances have changed.
Tip #3 – Deal with bills in the right order
The consequences of not paying some bills and payments are more serious than others. These are called ‘priority debts’ and mean you could lose something if you do not pay it. For instance, if you don’t pay your rent, your mortgage, or any debt that is secured against your home, you will be at risk of losing it.
It’s hard when you’re struggling with bills, and you are worried you might miss a payment. But make sure you don’t ignore your bills and instead, talk to the companies concerned. They can help you.
- Explain what the situation is and why you’re going to struggle to pay.
- The companies can choose to help you in a number of ways, including adjusting payments or stopping interest and penalty charges.
- Work with your creditors to figure out a manageable way to pay what you owe.
- Keep communicating with your creditors, updating them whenever your circumstances change.
If you have several bills you’re going to struggle to pay, you can work out which ones you need to deal with first using this easy-to-use Bill Prioritiser.
Tip #4 – Deal with your debt
If you search for debt advice online, you are going to be bombarded with advertisements from debt advice providers who say they can help you – but please beware.
On social media for example there are hundreds of examples of companies offering “free” debt advice and claiming they write off the majority of your debts. These companies typically offer something called an IVA (Individual Voluntary Arrangement), which is unlikely to be suitable for people with low levels of debt, people without much disposable income, or people whose income solely comes from benefits.
Talk to MoneyHelper for free, independent and impartial money advice. Visit www.moneyhelper.org.uk or call them on 0800 138 7777
