Savings Reduced as Mums’ Budgets Squeezed
Mums across the country are tightening their budgets and reducing savings to meet the high cost of living, a new survey shows.
Almost half of British mums intend on reducing their family savings by about £386.76 this year, the UK Mums Budget research by Family Investments revealed.
Paying utility bills is the biggest concern, many heads of households’ fear this year, followed by their ability to save enough, or anything at all.
An estimated total of £1.3 billion will be cut from family savings, with the most significant reductions coming from short-term savings into accounts such as instant access ISAs, on average £20.18 a month per household.
“Our first Mums Budget clearly shows that Mums are under the financial cosh at the moment,” said Kate Moore, Savings and Investments head at Family Investments, Brighton.
“They are being hit hard by the increasing cost of everyday items, particularly utility bills, petrol and food.”
A further 18 percent of mums surveyed admitted they are cutting their monthly pension contributions by about £159.60.
Other household cuts include long term savings for children, with 21 percent of mums cutting back a total of £58.80 a year on this and this is despite the rising cost of university fees.
In total, UK mums will be spending over £2.5 billion more on utilities this year, £36.76 more per month, per household.
Transport costs will be costing families an additional £401.64 a year and an extra £35.22 per month per household will be spent on groceries.
Families Hit by Cuts Hardest
According to research by the Consumer Credit Counselling Service (CCCS), families in debt are particularly vulnerable in the economic climate, compared to other households struggling with debt.
This is due to the forthcoming welfare cuts which will see child benefit reduced and a rise in everyday costs and a fall in incomes, with some even contending with unemployment.