The Budget and Family
This week I was quoted in Female First regarding George Osborne’s latest budget and its implications for your family. I gave advice around three main topics; Junior ISAs, Fuel Duty and Child Care. Below is a summary of the article.
George Osborne announced that money saved in Child Trust Funds can now be moved into Junior ISAs. This is good news for families, as the best Junior ISAs are now paying twice as much interest as the old CTFs, so make the switch as soon as you can.
Please keep in mind that most savings in a Junior ISA cannot be cashed in before your child’s 18th birthday, however they are still a great way to get your children into the saving habit.
Families who drive to work and school will welcome the freeze in fuel duty announced in budget, although you might want to look at ways of cutting down on unnecessary driving anyway – as fuel remains expensive.
One way to reduce costs as a family is to walk or cycle with children to school. One growing trend is for children to scoot to school. If this is something you are interested in, then check out our post on the best scooters for kids. Parents can also join in if you are brave enough.
A change in child care
The Government has already announced a new system for tax breaks on child care, meaning that from 2015, working parents with children under five years old can claim back up to £1,200 a year per child. This will extend to children under 12 by 2020, so all you Mums and Dads should hopefully have some extra change in your pockets.
As always however there are some winners and losers in the change over from the current scheme. Moneysavingexpert analyze the winners and losers of the new scheme childcare voucher scheme here. Remember, this won’t come into place until after the next election in late 2015 so you may be better joining the existing voucher schemes if your employer offers one (only 5% of employers do!)
The budget and children
Talking to children about the budget can help them get involved with family finances and help them understand why managing money is an important life skill.
When children are given pocket money they are faced with decisions, whether to spend it immediately or save up for a long-term goals. It is important for children to have this personal responsibility from a young age as it helps them get to grips with a subject that seems to be confronting them earlier and earlier in life, and in ever increasing complexity.