Managing Your Money as a Foster Parent
Whether you're thinking about fostering or are already a foster parent, managing your finances well can make a big difference. Check out our top money-saving tips for foster parents.
At ACS, all our foster parents receive a generous fostering allowance that is often tax-free, so you don’t have to worry about meeting the needs of the child in your care. However, whether you’re considering fostering or are already a foster parent, it’s a good idea to get a grip on your finances so you can make it go even further. Read on to discover our top tips for managing your money as a foster parent.
Why is money management important for foster parents?
Good money management puts you in control of your finances, giving you the peace of mind to concentrate on what really matters - providing the children and young people you foster with the childhood they deserve.
If you aren't already fostering, it's worth considering your financial situation before you apply because, during the fostering assessment, we'll evaluate your finances. We do this to ensure that you don't have any financial obligations that will make it challenging to meet the needs of the children you care for. We also need to ensure fostering won't leave you financially strained if you experience a gap between referrals.
7 Tips to help make your money go further
Establish a budget
Effective money management starts with a realistic budget. Here are some simple steps to help get you started:
- Pick a budgeting tool that's easy to update, such as a spreadsheet or app.
- Jot down any income you receive from your fostering allowance, pension and, if you're entitled to them, benefits. If you aren't already a foster parent, use our finance calculator to see how much you could earn.
- Gather your bank statements and receipts, then categorise your spending into essential and non-essential categories. Essentials include things like rent, mortgage, utilities and groceries. Non-essentials include subscriptions, treats and days out.
- Once you understand your disposable income and how you currently spend it, you can create new spending habits by creating categories for non-essential spending and setting a limit for each. Categories could include pocket money, an emergency fund, savings and days out.
- Regularly re-evaluate your budget to ensure you are sticking to your limits and aren't overspending.
Switch to another provider
It used to be a given that if you stayed with the same service provider for utilities, internet or insurance, you'd receive a reward for your loyalty, and your monthly payments would decrease. However, these days, you're more likely to receive a better deal if you switch to another provider.
Comparison websites make it easier to see which companies offer the most competitive deals, so it's worth checking them out to see if you could save money. If you've just renewed a policy or are bound to a provider by a contract for a few more months, contact them; they still might be able to offer you a cheaper deal.
Make the most of free activities
The best things in life are free, so why not make the most of free activities? Many activities are not only fun but educational too and don’t require lots of pre-planning and travel. Here are some ideas:
- Foraging - from blackberry bushes to apple trees, the UK is brimming with wild fruit just waiting to be picked. You could spend the day foraging before returning home to bake a pie or crumble together. Not only will this help the child in your care learn to cook, but it will give them a sense of accomplishment.
- Scavenger hunts - whether you go to the woods or do it in the back garden, scavenger hunts are a brilliant way for children to learn about nature. Create a list of items such as pinecones, leaves and conkers, then challenge them to find each one. You could give them a small prize if they collect them all and teach them about the lifecycle of plants.
- Libraries - local libraries often host free activities for kids of all ages and save you money because you can revamp your family book collection each week for free. They also free up space in your home as you'll only need to store the books you've checked out for the week.
- Local attractions - a quick internet search will help you find free attractions in your local area. For example, in Birmingham, the Think Tank Museum offers free entry to their science garden every day after 3 pm, and many tourist attractions offer free exhibitions.
Search for discounts
Whether ordering something online or in person, it's worth searching for discounts before committing to a purchase. At ACS, we make this process easier. When you foster with us, you receive access to the Exchange, our rewards platform that gives you discounts on anything from insurance and your weekly shop to holidays and days out. Just log in and search for the company you are purchasing from; the website will then provide a list of any available discounts.
You can also receive further discounts by signing up for a Blue Light Card. Once registered, you can use their Blue Light Tickets website and enter exclusive ballots to get free entry to activities and events across the UK.
Sell and buy second-hand items
If there are items in your home that you no longer use, sell them! Not only will it feel good to declutter, but you will make some extra money to spend on fun activities or save for a holiday. Platforms like Vinted and Facebook marketplace let you sell your second-hand items for free, and you can usually get a pitch at a local car boot sale for less than £10.
If you're setting up your home ready to welcome your first child, consider buying furniture second-hand. You'll save money and may even find high-quality items for the same price as brand-new, lower-quality ones. The same applies to clothing; many people sell clothes they've only worn once at a fraction of the original retail price, and with a quick wash, they'll feel as good as new.
Plan meals before shopping for groceries
Ask the child in your care to help plan your family’s meals for the week and create a precise list of ingredients. If you want to be really organised, you could prep all your meals for the week on a Sunday, so after a long day, all you need to do is reheat and serve them.
Meal planning and prepping will reduce the amount of food you waste and lessen your worry about what your family will eat each night because you already have something prepared. It will also prevent you from making multiple visits to the supermarket, where you may be tempted to buy items you don't really need.
Don’t forget your loyalty cards
With so many supermarkets and high street retailers offering loyalty cards, it can be easy to lose track of where they are. If you have a smartphone, you can usually store an electronic version of your loyalty cards in your virtual wallet, so you aren't left red-faced fumbling to find them at the till.
Many retailers give loyalty card holders personalised discounts, and you can use points to pay for groceries or swap them for day trips and meals out. During the festive period, you can often double your points and earn more when you purchase specific items. So, don't forget about your loyalty cards and collect those points every time you shop.
If you’d like to learn more about faith-based fostering or managing your money as a foster parent, get in touch.
