Financing a Family in England During The Euro Recession

We all understand that having a family can put a serious strain on your personal and household finances but the latest figures have revealed the extent of the squeeze having child number two can have a couple’s capacity for saving money.

The picture is different for couples and young families in different regions of the UK and perhaps unsurprisingly it is in London and its surrounding areas where the costs associated with having a second child are most keenly being felt.

Average incomes are higher in London of course but from the point of view of accommodating an extended family, the added costs are presenting many couples in the capital with a significant extra burden and another challenge to their capacity for saving. Indeed, a study carried out on behalf of HSBC recently found that moving to a property with three bedrooms from one with two can cost London homeowners an extra £163,270. Little wonder then that setting cash aside in savings accounts often becomes so much more difficult the larger your family becomes.

The borrowing jump needed to move to a larger house to accommodate a second child is up at £75,048 for the south-east of England as a whole and is least challenging in Yorkshire, according to HSBC’s research. However, when looking at the cost of up-sizing as a percentage of average property prices, it was the East Midlands that emerged as the most expensive part of the country to add another child.

Saving for children and for their own future is an integral part of most British parents approach to their personal financial management but setting cash aside has become an increasing struggle for many in London, the East Midlands and around the country as rising prices take their toll. However, a study by the insurance provider Prudential recently found that as many as 15 percent of all Britons keep a secret stash of savings in an account that their partner has no access to. The reasons for this apparent duplicity vary but many people said they worried their partner might misspend or unwisely allocate their money.

Tags: euro, finance, recession

Category: Advice, Banking, Borrowing, Finance, Loans, Money