Opening your home to foster children is a fantastic way to give back to the community and make a real difference, but you need to consider the financial costs involved. Everything from food to activities can put a strain on the budget, which is why it’s important to sit down and pick apart your financial situation.
Track Expenses
In the same way fostering requires a commitment to providing a stable and nurturing home, looking after your financial health calls for a similar level of commitment. By tracking your expenses, you can get a true insight into how you spend, which allows you to make informed financial decisions.
The first step is to go through your transactions and record all income and outgoings, which you can achieve with a basic spreadsheet, a notebook, or a budgeting app. Categorise all expenses to create a clear picture of your habits. Knowing where you spend money can help you make cutbacks and get the most out of your income.
Make the Most of Allowances
As a foster carer with an agency like fosterplus.co.uk, you will receive a foster allowance for each child in your care. This is to help with general costs like clothing, food, and other supplies. As well as this, you’re entitled to a tax exemption up to the amount of £18,140, but this figure changes depending on the government’s annual review.
Set a Budget
When you have a clear picture of all income and outgoings, you’re in a position to create a budget, which is a fundamental aspect of achieving financial stability. A budget is a roadmap for the allocation of income, prioritising bills, and savings, and leaving entertainment for last. To help split your income, consider setting goals to keep you grounded. Are you trying to get out of debt? Are you saving for retirement?
Shop Smart
Balancing the needs of your foster children and everyone else in the family can be tricky, especially if you’ve got a limited budget. However, by adopting a smart shopping strategy, you can boost your purchasing power and make the pounds go further. Here are some tips to help you shop smart:
- Bulk buy: If you have the space, consider buying non-perishable items like beans, rice, and pasta in bulk. If these products feature regularly on your meal plan, it can be cheaper in the long run.
- Plan meals: Meal planning can save time and reduce food waste and impulse purchases.
- Shop with a list: Supermarkets know how to draw you into buying items you don’t need, so make a list and stick to it.
- Choose generic brands: Store-brand or generic products can offer the same quality as named brands but at a fraction of the price.
- Grow your own produce: Spend time with your foster children and build a herb and vegetable garden.
Fostering children is rewarding, but it also requires careful financial planning. By budgeting effectively and following various financial management strategies, you can ensure that resources are allocated effectively, which helps create a stable environment for foster children.
