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Families must 'prioritise finances' as childcare costs soar
Families need to prioritise their spending habits in order to afford expensive costs such as childcare, according to financial psychologist and creator of advice website Taming the Pound Kim Stephenson.
He explained that many families "fail to think [about] what is important" and buy things they do not need, resulting in having to pay for "important things like food or childcare with credit".
"They have to pay interest on the larger mortgage and the credit cards, and that gives them less disposable income," he said. "And that puts even more of a squeeze on and they start wondering whether it is worth paying for childcare."
This could in turn lead to people being refused credit as their debts mount up.
Recent research by Save the Children and Daycare Trust revealed that the UK is one of the most expensive countries in the world for childcare costs at an average of £177 a week for a full-time nursery position for a child under two years old.
This represents 28 per cent of the average income for a two-earner household.
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He explained that many families "fail to think [about] what is important" and buy things they do not need, resulting in having to pay for "important things like food or childcare with credit".
"They have to pay interest on the larger mortgage and the credit cards, and that gives them less disposable income," he said. "And that puts even more of a squeeze on and they start wondering whether it is worth paying for childcare."
This could in turn lead to people being refused credit as their debts mount up.
Recent research by Save the Children and Daycare Trust revealed that the UK is one of the most expensive countries in the world for childcare costs at an average of £177 a week for a full-time nursery position for a child under two years old.
This represents 28 per cent of the average income for a two-earner household.
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Published: 16/05/2011
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.